Went over $30,000 and didn't charge GST/HST? Here's what to do
- LiableYou owe the GST/HST you should have charged, even if you didn't collect it
- 29 daysto register, counted from your effective date of registration
- 30 daysthe furthest back you can set your start date online; earlier needs a written request
You still owe it
Once you're no longer a small supplier, you're liable for the GST/HST you should have charged, whether or not you collected it. Register now and ask the CRA to set your registration date to when you had to register. Going back more than 30 days needs a written request with your sales records. Then file the returns for those periods. Input tax credits from that date reduce what you owe.
It happens a lot: a good year, a few big invoices, and the $30,000 small supplier limit goes by without anyone noticing. The CRA's rule is simple. If you were required to charge GST/HST and didn't, you're still liable for it.
The fix is a sequence: find the date, register with that date, then file and pay. Here's each step, with what the CRA asks for.
1. Find the date you had to start charging
Which date applies depends on how you went over $30,000. Calendar quarters are January to March, April to June, July to September and October to December.
Here's Situation B with real dates, for a freelancer whose revenue for the four quarters ending June 30, 2026 adds up to more than $30,000. No single quarter was over $30,000.
- The last four quarters add up to more than $30,000.
- End of the month after that quarter: no longer a small supplier.
- First sale after that (hypothetical): GST/HST applies from this sale.
- 29 days later: the deadline to register.
Sales before that date are fine. You didn't have to charge GST/HST while you were still a small supplier. What you owe starts at the effective date. In Situation A, that includes the sale that took you over.
2. Register, then ask for the right start date
You register online through Business Registration Online. The catch is the start date: Business Registration Online won't accept an effective date more than 30 days in the past. Anything earlier needs a written request.
- Register using Business Registration Online (BRO) in your CRA account. Choose an effective date within the last 30 days. The CRA will change it if your request is approved.
- Write your request. Include your business number, the effective date you're asking for, and the full name and signature of the owner (you, as a sole proprietor).
- Attach your numbers. The CRA wants a written breakdown of your finances, with supporting documents such as spreadsheets or sales journals. These must show when your taxable revenue, including zero-rated sales, first went over $30,000.
- Send it through your CRA account (Business account, then Submit documents, topic Contact Centre Correspondence), or by mail or fax. The CRA reviews it and sends you its decision.
Mailing it? Sudbury Tax Centre, Attn: Contact Centre Correspondence Intake, Post Office Box 20000, Station A, Sudbury ON P3A 5C1. Fax from Canada or the US: 1-833-697-2401.
3. Work out what you owe for the missed periods
Once your effective date is set, you file a return for each reporting period since then. The GST/HST you should have charged goes in the return for the period when you should have charged it.
- Line 103All the GST/HST you collected or were required to collect, including on invoices where you didn't charge it.
- Line 106Input tax credits for GST/HST you paid on business costs from your effective date. These reduce what you owe.
- Line 109Net tax: what's left to pay after input tax credits and adjustments.
Input tax credits reduce the bill. As a new registrant you may also be able to claim some GST/HST paid before the effective date, such as on equipment you still use. See claiming GST/HST paid before you registered.
4. Expect a late-filing penalty and interest
A return filed after its due date can bring a late-filing penalty, but only if you owe money. There's no late-filing penalty when you owe $0 or the CRA owes you a refund. Interest can also apply to any overdue balance.
- 1%of the amount owing: the base late-filing penalty.
- +25%of that 1%, for each complete month the return is late.
- 12months at most: the monthly part stops growing after a year.
- Amount owing on the late return
- $1,000.00
- A: 1% of the amount owing
- $10.00
- B: 25% of A
- $2.50
- C: complete months late
- × 3
- Penalty: A + (B × C)$10.00 + ($2.50 × 3)
- $17.50
The CRA can cancel or waive penalties and interest only in some extraordinary circumstances. Because the penalty grows with each complete month, it pays to file the missed returns promptly.
5. Decide whether to go back to clients
The liability is yours whether or not a client pays you the tax. Some freelancers send clients a corrected invoice with the GST/HST added. How that lands depends on who the client is:
An accountant can help you decide what to send.
Clients outside Canada? Your sales to foreign clients count toward the $30,000, but many are zero-rated, so there may be nothing to recover on them. See GST/HST and US clients.
Tracking it
Total your revenue by calendar quarter as you go and keep a running four-quarter total. That's how you see $30,000 coming, and it's the kind of record the CRA asks for if you need to backdate a registration.
See the $30,000 coming, and have the records if you need them
The Canada Self-Employed Income, Expense & GST/HST Tracker is a spreadsheet for Excel and Google Sheets. It logs every invoice with its date and totals your income and GST/HST for each month, so adding up a quarter takes seconds. One-time price, $19 CAD, instant download.
Get the tracker: $19 CAD What's insideOnce you're registered, the guide to filing a GST/HST return covers each return step by step.
FAQ
I went over $30,000 but didn't charge GST/HST. Do I still owe it?
Yes. If you were required to charge GST/HST and didn't, you're still liable for it. It goes in the return for the reporting period when you should have charged it, from your effective date of registration onward.
Can I backdate my GST/HST registration?
Yes. Business Registration Online accepts an effective date up to 30 days in the past. For an earlier date, send the CRA a written request with your business number, the date you're asking for, your signature, and records showing when your taxable revenue first went over $30,000.
Do I owe GST/HST on sales from before I went over $30,000?
No. While you were a small supplier you didn't have to charge it. GST/HST applies from your effective date. If you went over $30,000 in a single quarter, that includes the sale that took you over.
Will I get a penalty?
If a return is late and you owe money, there's a late-filing penalty: 1% of the amount owing plus 25% of that 1% for each complete month late, up to 12 months. There's no late-filing penalty if you owe $0 or are due a refund. Interest can apply to overdue balances.
Can I claim input tax credits for the periods I missed?
Yes, for GST/HST paid on business costs from your effective date of registration, within the time limits. As a new registrant you may also claim some tax paid before that date, such as on equipment you still use in your business.