Key takeaways
- You're a small supplier while your taxable sales stay at $30,000 or less over four consecutive calendar quarters. Above that, you must register.
- If you pass $30,000 in a single quarter, you must start charging HST on the sale that takes you over.
- You can register voluntarily before then: you'd charge HST, file returns and claim input tax credits, and stay registered at least a year.
- Ontario HST is 13%. Prepared food and drinks of $4 or less in one sale get the 8% provincial part rebated at the till.
- On FIG, deals and scans work without an HST number; takeout needs one, and it goes on every receipt.
The short answer
In Canada, a business must register for GST/HST once its taxable sales go over $30,000 in four consecutive calendar quarters, or in a single quarter. Below that, it's a "small supplier" and registration is optional. In Ontario, a registered restaurant charges 13% HST on most meals and remits it to the Canada Revenue Agency (CRA), and can claim back the HST it paid on business costs. This guide explains the rules in plain language. It's general information, not tax advice: your accountant knows your situation.
Am I a small supplier?
The CRA's test looks at your taxable sales (worldwide, including those of associated businesses) over a rolling year:
| Your sales | What it means |
|---|---|
| $30,000 or less over the last four consecutive calendar quarters | You're a small supplier. Registering is optional. |
| Over $30,000 across four consecutive quarters, but not in one | You stop being a small supplier at the end of the following month. Charge HST from then, and register within 29 days of that date. |
| Over $30,000 in a single calendar quarter | You stop being a small supplier right away: charge HST on the sale that takes you over, and register within 29 days. |
Calendar quarters end March 31, June 30, September 30 and December 31. Most restaurants open to the public pass $30,000 quickly: that's about $580 of sales a week.
Should I register before I have to?
You can register voluntarily. The CRA lists what that means:
- You charge, collect and remit HST on your taxable sales.
- You file GST/HST returns regularly.
- You can claim input tax credits (ITCs): the HST you paid on purchases and operating costs, like equipment and supplies, comes back to you.
- You stay registered at least one year before you can cancel.
For a new restaurant buying equipment and renovating, ITCs can be significant. For a tiny operation, collecting and filing may not be worth it yet. That's the conversation to have with an accountant.
How HST works on restaurant food in Ontario
- The rate is 13%: the 5% federal part and the 8% Ontario part.
- The $4 rule. When qualifying prepared food and drinks sold to someone at one time total $4 or less (before tax), the 8% provincial part is rebated at the till, so only the 5% applies. A $3.80 coffee or snack is taxed at 5%; a $12 lunch at 13%.
- Discounts reduce the taxable price. HST is calculated on what the diner pays after your own discount, the same way a store coupon reduces the price before tax.
- A $16 dish with a $4-off deal: the diner pays $12.00 + 13% HST ($1.56) = $13.56.
- Without the deal: $16.00 + $2.08 = $18.08.
- If you're registered, you remit $1.56 on that sale, not $2.08.
Your HST number
When you register, the CRA gives you a 15-character account number: your 9-digit business number, the letters RT (the GST/HST program) and a 4-digit reference, for example 123456789 RT 0001. It goes on your receipts.
HST on FIG
| On FIG | HST number needed? |
|---|---|
| Your page, menu and deals | No |
| Scanning diners for dine-in deals | No: you charge tax on your own bill as usual |
| Takeout (diners pay in the app) | Yes, plus Stripe payouts |
For in-app takeout, your HST number goes on every receipt, with your restaurant as the seller. The diner pays the HST with the order, it's paid out to you with the rest, and it's yours to remit. Each month's takeout statement shows sales, HST, fees and what you kept, ready for your bookkeeping. How to set up in-app takeout.
A simple checklist
- Add up your taxable sales for the last four calendar quarters, every quarter.
- If you're near $30,000, plan to register before you pass it.
- Once registered, set your till to charge 13% (with the $4 rebate where it applies), keep receipts for everything you buy, and file on time.
- Add your HST number in FIG under Settings → Get paid if you want in-app takeout.
The CRA's own pages are the final word: when to register and start charging the GST/HST.
Questions
What is the small supplier limit in Canada?
$30,000 of taxable sales over four consecutive calendar quarters, or in a single quarter. Above that, you must register for GST/HST.
How long do I have to register?
Within 29 days of the day you stop being a small supplier, according to the CRA. You must start charging HST from that day.
Can I register for HST voluntarily?
Yes. You'd charge and remit HST, file returns and claim input tax credits, and you'd stay registered at least one year.
What is the HST rate on restaurant meals in Ontario?
13%. Qualifying prepared food and drinks of $4 or less in one sale get the 8% provincial part rebated at the till, leaving 5%.
Is HST charged on the price before or after a deal?
After your own discount: HST is calculated on what the diner actually pays.
Do I need an HST number to use FIG?
Only for takeout, which diners pay for in the app. Deals and scans work without one.
Is this tax advice?
No. It's general information with links to the CRA. Talk to an accountant about your own situation.
