How GST/HST Works for Gig Workers and Small Businesses in Canada

If you drive for Uber, deliver for Instacart, or run a small service business in Canada, understanding sales tax is crucial. In Canada, the federal Goods and Services Tax (GST) is 5%, while some provinces combine it with provincial tax to form the Harmonized Sales Tax (HST)—such as 15% in Nova Scotia or 13% in Ontario.

As a general rule, once your gross self-employed revenue exceeds $30,000 over four consecutive calendar quarters, you must register for a GST/HST account with the Canada Revenue Agency (CRA). However, ride-sharing drivers (like Uber and Lyft) must register for a GST/HST number from their very first dollar earned, regardless of income. Once registered, you collect the tax on your fares and remit it to the CRA, while claiming Input Tax Credits (ITCs) on the GST/HST you paid for gas, repairs, and business supplies.