Do US clients count toward the GST/HST C$30,000 threshold?

Separate two questions that are easy to mix up

The threshold question is whether revenue enters the small-supplier calculation. The invoice question is whether GST/HST is charged on a particular supply. A supply can be taxable at 0% and still count toward the C$30,000 threshold.

That is why a freelancer can have no GST/HST shown on legitimate zero-rated export invoices and still approach mandatory registration. Do not use the amount of tax collected as a proxy for the amount that counts.

What CRA says to total

For most businesses, CRA uses revenue before expenses from worldwide taxable supplies. A sole proprietor includes taxable revenue from all of their businesses and applicable associates, not one C$30,000 limit for each side business.

Assign consideration to a calendar quarter when it becomes due or is paid without first becoming due—not merely when work is performed or cash reaches the bank. Invoice and agreement terms can determine when an amount becomes due.

CRA's threshold footnote excludes revenues from financial services, sales of capital property, and goodwill from the sale of a business. Exempt supplies are not taxable supplies. Classification should come before calculation.

• Use gross revenue before processor fees and other expenses.
• Include taxable and zero-rated supplies made inside and outside Canada.
• Combine all sole-proprietor business lines and review applicable associates.
• Keep exempt, excluded, and unresolved amounts separate rather than silently treating them as zero.

A foreign customer does not automatically mean 0%

CRA's exported-services rules contain conditions and exclusions. Relevant facts can include who legally receives the service, whether the recipient is a non-resident, the recipient's regular GST/HST registration status, whether an individual is in Canada, and whether the work relates to Canadian real property, goods, agency activity, transportation, or telecommunications.

A foreign incorporation or address is not conclusive. A non-resident can be deemed resident for activities carried on through a Canadian permanent establishment, while a Canadian subsidiary is a separate resident person. Identify the actual contracting recipient and any Canadian establishment before relying on zero-rating.

The supplier is responsible for supporting the position. Keep the signed agreement, the customer's legal name and business address, evidence of non-residence or registration status where relevant, a clear service description, and the conclusion reached by the reviewer.

Worked threshold example

Suppose a Canadian designer assigns consideration to four completed calendar quarters using the due-or-paid timing rule. All amounts below are already converted to Canadian dollars and are believed to be taxable or zero-rated supplies.

What the example means

If those US-client supplies are correctly classified as taxable or zero-rated, the C$31,000 total indicates a completed-quarter crossing even though most revenue came from the United States. The exact date small-supplier status ends and the effective registration date still depend on the timing rules and later supplies.

If any US-client row is unresolved, keep it visible outside the confirmed total and treat the unresolved amount as a separate sensitivity. Resolve the legal classification before relying on the lower number.