GST/HST for Canadian Freelancers: The Complete Expense Tracking Guide
Everything self-employed Canadians need to know about tracking GST/HST on expenses — from input tax credits to filing periods to the provincial rules that trip people up.
Marcus Chen
Tax Specialist
GST/HST is one of the most valuable — and most misunderstood — aspects of running a self-employed business in Canada. Get it right and you recover hundreds or thousands in input tax credits each year. Get it wrong and you either leave money on the table or face reassessment. This guide covers the complete picture: registration thresholds, ITC claims, provincial variations, and filing mechanics.
When You Must Register for GST/HST
GST/HST registration becomes mandatory once your taxable supplies exceed $30,000 in any single calendar quarter, or in the last four consecutive quarters. This threshold is per individual, not per client. Once crossed, you must register within 29 days of the quarter-end in which you exceeded the threshold.
The ITC Advantage: Getting Your GST/HST Back
Once registered, you claim back the GST/HST you paid on business expenses as input tax credits (ITCs). These credits offset the GST/HST you collect from clients. If your ITCs exceed the tax you collect (common for new businesses with high startup costs), the CRA issues a refund. This is why some freelancers choose to register voluntarily before hitting the $30,000 threshold — particularly those with significant startup expenses.
Provincial GST/HST Rates (2025)
- 5% GST only: Alberta, British Columbia, Manitoba, Saskatchewan, Northwest Territories, Nunavut, Yukon
- 13% HST: Ontario
- 15% HST: New Brunswick, Newfoundland & Labrador, Nova Scotia, Prince Edward Island
- 5% GST + 9.975% QST: Quebec (QST is claimed separately through Revenu Québec)
- Note: BC, Manitoba, and Saskatchewan also charge PST (7–8%), which is NOT recoverable as an ITC
ITC Documentation Requirements by Purchase Amount
- Under $30: vendor name, date, total — no GST number required
- $30–$149.99: add vendor's GST/HST registration number and total tax
- $150+: add buyer's name or trade name
The Quick Method of accounting for GST/HST lets eligible small businesses remit a flat percentage of sales instead of tracking every ITC individually. It simplifies filing but often results in paying more net GST/HST than the detailed method. Run the numbers with your accountant before electing it.
Choosing Your Filing Period
Annual filers (under $1.5M in taxable supplies) file once per year. Quarterly or monthly filing is also available by election and can help cash flow if you regularly receive large ITC refunds. The downside is more frequent filing. Most sole proprietors earning under $500,000 per year do well on annual filing unless they have seasonal expense spikes that would otherwise create cash flow gaps.