GST/HST and bookkeeping basics

Lesson 3 of 11 in Self-Employment & Small Business Setup · 22 minutes

Canadian businesses must know GST/HST rules and basic bookkeeping. This lesson covers when to register, how to charge, and how to track business finances.

What you'll learn

Understand GST/HST and when to register
Calculate GST/HST on sales
Set up basic bookkeeping
Identify deductible business expenses

From the lesson

Once you start earning business income, you have new tax obligations. GST/HST registration kicks in at certain income levels. Bookkeeping rules apply year-round. Understanding these from the start saves stress and money later. This lesson is the practical guide.

1. GST/HST — what they are

GST (Goods and Services Tax) and HST (Harmonized Sales Tax): • Federal sales tax on most goods and services. • Charged by businesses to customers; remitted to CRA. • Rate varies by province:

• GST only (5%): Alberta, BC, Saskatchewan, Manitoba, Quebec (with separate QST 9.975%), Yukon, NWT, Nunavut.

• HST (federal + provincial combined): • Ontario: 13%. • Nova Scotia: 14% (since 1 April 2025). • New Brunswick,…