When you register for GST/HST with the CRA, you get assigned a filing frequency — annual, quarterly, or monthly. For most new freelancers and small business owners, the CRA starts you as an annual filer. But that's not always the best fit.
Here's how the CRA sets your frequency, what the difference is in practice, and how to change it.
How the CRA assigns your filing frequency
The CRA uses your estimated annual taxable revenue to set your initial filing period:
- Under $1.5 million: annual filer (default for most new registrants)
- $1.5 million to $6 million: quarterly filer
- Over $6 million: monthly filer
Note that these are the required minimums. Annual filers can elect to file quarterly or monthly. Quarterly filers can elect monthly. You cannot elect a less frequent schedule than your revenue requires.
Annual filing: the default for small businesses
Annual filers submit one GST/HST return per year. If your fiscal year matches the calendar year, your return is due June 15, but your payment is due April 30. You only deal with paperwork once a year, which is convenient if your bookkeeping is simple.
The downside: you collect GST/HST throughout the year but don't remit until the end. That creates a lump sum payment — sometimes thousands of dollars — that can catch people off guard if they haven't set the money aside. Some annual filers find that a big tax bill once a year is harder to manage than smaller, more frequent ones.
Quarterly filing: more manageable for growing businesses
Quarterly filers submit returns four times a year, with each return and payment due one month after the quarter ends. The amounts are smaller and more predictable, which makes cash flow easier to manage.
If you invoice regularly and collect HST on most of your revenue, quarterly filing also makes it easier to catch errors before they accumulate. It's a good middle ground between the administrative simplicity of annual filing and the constant attention of monthly filing.
Monthly filing: for businesses with regular input tax credits
Monthly filing is generally required above $6 million, but some smaller businesses elect it voluntarily — particularly those with significant HST-taxable expenses who want to recover their input tax credits more quickly. If you spend heavily on equipment or supplies and pay a lot of HST, getting those credits back monthly rather than once a year can improve cash flow.
How to change your filing frequency
You can request a change to your filing frequency by:
- Logging into My Business Account at canada.ca and updating your GST/HST account settings
- Calling the CRA Business Enquiries line at 1-800-959-5525
- Writing to your local CRA tax centre
Changes to filing frequency take effect at the start of your next fiscal year. You can't switch mid-year.
Which should you choose?
For most freelancers and sole proprietors just starting out, annual filing is fine — as long as you set aside GST/HST in a separate account every time you invoice. The risk is a large year-end payment if you haven't been saving.
If you'd rather remit smaller amounts throughout the year and keep closer tabs on your HST position, quarterly is a reasonable election even if you're not required to file that often.
HST Hero shows you your running GST/HST balance so you always know roughly what you'll owe at your next filing deadline — whether that's once a year or once a quarter.