How HST Works for Ontario and New Brunswick Small Businesses

HST is one tax, but the rate depends on which province you’re working in, and that affects your pricing.

The rate difference adds up

• Ontario: 13% (5% federal GST plus 8% provincial)
• New Brunswick: 15% (5% federal GST plus 10% provincial)

Two points might not sound like much, but it changes what you charge and what you remit. If you do business in both provinces, it’s worth double-checking.

Do you need to register?

You generally have to register for a GST/HST account once your total revenue goes over $30,000 in a single calendar quarter or over four quarters in a row. That’s your revenue across all your businesses, not each one on its own. Below that, registering is optional. Some small operations register anyway so they can claim input tax credits. That’s a decision worth making on purpose rather than by default.

Input tax credits, briefly

Once you’re registered, you can generally claim back the HST you paid on business purchases (tools, materials, a work vehicle, software) against the HST you collected. This is where good bookkeeping pays for itself. If you can’t prove you paid the HST, you can’t claim it back.

Filing frequency

How often you file (monthly, quarterly or yearly) is based on your revenue, and in most cases CRA assigns it. You don’t just get to pick. Missing a filing deadline is one of the easier ways to get CRA’s attention, and one of the easiest to avoid.

Summary

• Know your rate: 13% in Ontario and 15% in New Brunswick. Don’t assume, especially if you work in both.
• Registration doesn’t happen automatically at $30K. It’s a threshold you cross, so plan for it before you get there.
• Keeping proper records of the HST you pay, as you pay it, is what lets you actually claim your input tax credits.

HST rates and thresholds are set by the federal and provincial governments and can change. These are the rates in effect as of the update date above. Check the current rates before you rely on them for pricing or filing.