Small supplier threshold, explained
The CRA rule is $30,000 over four consecutive calendar quarters, and the four quarters roll — they are not your fiscal year. Under it, you can choose not to register and charge no GST/HST. Over it, registration and collection stop being optional. The rule is set out on the CRA page on when to register for and start charging GST/HST.
Timing depends on how you cross. Exceed $30,000 in a single calendar quarter and your effective registration date is no later than the day of the supply that took you over — that sale is taxable. Exceed it over four quarters without blowing through it in one, and you stop being a small supplier at the end of the month following that quarter, with registration effective no later than your first supply after that.
The mistake barbers make most is counting take-home pay instead of gross taxable revenue. The threshold measures what you billed, not what you kept, so a chair renter counts every haircut before rent comes out. Registering voluntarily under the threshold is also worth a look, since it lets you claim input tax credits on clippers, chairs and product.
BarberFlow ships tax templates per location, including Ontario HST at 13%, BC GST 5% plus PST 7%, Alberta GST 5%, and Quebec GST 5% plus QST 9.975%. Turn tax on the day you register and choose whether it is included in your prices or added at checkout. Receipts and the sales export then carry the right numbers for your filing.
See AccountingFrequently asked questions
What is the $30,000 GST/HST threshold in Canada?
It is the small supplier threshold: $30,000 in taxable revenue over four consecutive calendar quarters. Stay under it and GST/HST registration is optional; cross it and registration and collection become mandatory.
When does a barber have to register for GST/HST?
A barber who exceeds $30,000 in a single calendar quarter must register effective no later than the day of the sale that crossed the line. A barber who exceeds it across four quarters stops being a small supplier at the end of the month following that quarter.
Does the $30,000 threshold count tips?
The threshold measures taxable revenue from your business, and voluntary tips paid directly to a barber are not consideration for a taxable supply. Confirm your own situation with the CRA or your accountant, since tip handling varies by how the shop pays out.
