HST for Ontario small businesses, explained
Ontario businesses charge and remit the 13% Harmonized Sales Tax once they pass the registration threshold.
Ontario uses the Harmonized Sales Tax (HST) at 13%, combining the federal GST and the provincial portion into a single tax and a single return.
When you have to register
You generally must register for HST once your taxable revenue passes the CRA's small-supplier threshold over four consecutive quarters. Many businesses register earlier to claim input tax credits on their purchases.
Input tax credits
Registered businesses claim back the HST they pay on business expenses as input tax credits, so the net you remit is the tax you collected minus the tax you paid. Accurate books are what make sure no credit is missed.
This is general information, not tax advice for your situation. Book a call and a Canadian accountant will give you the answer for your business.
Common questions
What is the HST rate in Ontario?
13%, which combines the 5% federal GST with an 8% provincial portion into one return.
Do I have to register for HST right away?
Only once you pass the small-supplier threshold, but registering earlier lets you claim input tax credits on your expenses. Your accountant can advise on timing.