GST/HST

GST/HST for SMEs: what you need to know

Published by Léonel Tsague Tsakeu, Omnia Trade Solutions

For an SME in New Brunswick, the HST (Harmonized Sales Tax) is one of the most frequently misunderstood tax obligations. Here's the essential rundown.

When does registration become mandatory?

GST/HST registration is mandatory once your business's gross revenue exceeds $30,000 over four consecutive calendar quarters. This is known as the "small supplier" threshold. Below that threshold, registration remains voluntary.

Why register before you have to?

Once registered, your business can claim input tax credits (ITCs), meaning you can recover the GST/HST paid on its own expenses (equipment, software, vehicle, etc.). If you wait until you hit the mandatory threshold, you lose these credits for the entire period before registration.

What rate applies in New Brunswick?

The HST rate in New Brunswick is 15%, combining the federal and provincial portions into a single tax.

How often do I need to file my return?

The frequency depends on your annual revenue. For most start-up SMEs (revenue under $1.5 million), the annual filing is the default regime, unless you choose otherwise.

"Many new entrepreneurs wait until they're required to register for GST/HST, when voluntary registration from day one can represent hundreds, even thousands of dollars in recoverable credits."

Have questions about your specific situation? Book a discovery call. We'll look together at whether voluntary registration makes sense for you.