In the Passing Lane: Exceeding The Small Supplier Threshold

Posted on April 14, 2011 by Cyndee Todgham Cherniak

I was asked the following question:

Hi, what if I initially thought that I would not be doing $30,000 worth of business and therefore, did not charge the HST.  Then part way through the year, I get a surprise project that puts me over the $30,000 limit.  Do I then just start charging the HST, or, would I need to re-invoice the other clients for the HST amount?

The answer is that you must register for GST/HST purposes when you take on the project that will cause you to exceed the small supplier threshold. After you are registered for GST/HST purposes, you must invoice GST/HST where applicable on invoices issued after that date.  Unless you retroactively register for GST/HST purposes, you would not re-issue old invoices issued before the date of registration.

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