Small supplier ($30,000 threshold)

A small supplier is a business whose taxable sales do not exceed $30,000 over four consecutive quarters (twelve months). Below this threshold, registering for the GST and QST is not required: you can sell without charging these taxes, but you cannot claim back the taxes paid on your purchases.

At a glance

Threshold: $30,000 in taxable sales over four consecutive quarters (twelve months)
Below the threshold: no obligation to register for GST/QST or to charge these taxes
Threshold Exceeded: Tax Registration and Collection Become Mandatory Within Specific Timeframes
You can voluntarily register to claim back the taxes (ITC and ITR) paid on your purchases
The calculation includes sales from businesses affiliated with your business: a single large contract can push you past the threshold

Why it matters

This is often the very first question asked by a self-employed person or a new business in Quebec: Do I have to charge taxes to my clients? As long as your annual sales remain under $30,000, you have a choice. Staying a small supplier simplifies your invoicing, but it means you won’t be eligible for tax refunds on your expenses. Registering voluntarily can pay off if your clients are businesses and you make significant purchases. Above all, keep an eye on the threshold: exceeding it without registering in time means you’ll have to remit taxes to the government that you never charged your clients, so you’ll end up paying them out of your own pocket. Here’s a concrete example: if you reach $40,000 in sales without having registered, you’ll still owe the GST (5%) and the QST (9.975%) on the portion above the threshold, that’s nearly $1,500 that you could have billed your customers instead of paying out of pocket. Once you’re registered, you can also compare the Quick GST/QST Method See the detailed instructions, and if you sell outside of Quebec, check your billing for HST. Managing this threshold properly also helps you avoid unpleasant surprises in the event of tax audit. The threshold and registration deadlines are specified by Revenu Québec. Bankeo connects you for free with a vetted accountant or CPA to help you make decisions based on your numbers, and we’re here to support you every step of the way.

Frequently asked questions

What exactly does “small supplier” mean?

It simply refers to a business or self-employed individual whose taxable sales remain low: $30,000 or less over the course of a year (four consecutive quarters). With this status, you are not required to register for sales tax or add it to your invoices. This is a relief measure designed for very small businesses and those just starting out.

How do you calculate the $30,000 threshold?

You add up the taxable sales of your business (and any businesses associated with yours) over four consecutive quarters. Note: A single large contract can cause you to exceed the threshold, and exceeding it within a single quarter immediately triggers reporting obligations. Exempt sales, such as certain financial services (sales to which no tax applies by law), do not count.

Should I register even if i’m below the threshold?

Often, yes. If your customers are businesses, taxes don’t bother them because they can claim them back, and you receive tax refunds on your own purchases. If you sell mainly to consumers, staying a small supplier keeps your prices lower. Bankeo connects you for free with a vetted accountant or CPA to help you decide based on your numbers, and we’re here to support you every step of the way.