What CRA Rules Do I Need to Follow as a Small Business Owner?

If you run a small business in Canada, you've probably wondered whether you're following all the CRA rules. The CRA is the Canada Revenue Agency, the federal government body that collects tax and sets the rules for how businesses report it.

If that question makes your stomach drop a little, you're in good company. After about 30 years of working with business owners, I hear "I don't know what I don't know" a lot. The rules are spread across many places and written in language most of us were never taught. Let's go through the common questions one at a time, in plain language.

Why do the CRA rules feel so overwhelming?

There isn't one rulebook. Income tax, sales tax, payroll and record keeping each have their own rules, forms and due dates. Which ones apply to you depends on your business structure (sole proprietorship or corporation), how much you sell, and whether you pay anyone. Two businesses on the same street can have completely different to-do lists, so it makes sense that it feels like a lot.

Do I have to charge GST/HST on my sales in Canada?

GST/HST is the sales tax most businesses add to their prices and pass along to the government. GST is the 5% federal tax. HST is a combined federal and provincial tax used in some provinces.

For most businesses, you have to register once your worldwide taxable sales go over $30,000, either in a single calendar quarter (a three-month block) or across four calendar quarters in a row. Taxable sales include sales taxed at 0%. Sales from associated businesses may count too, so check with your accountant if you operate more than one business. Under that limit, the CRA calls you a "small supplier," and registering is optional.

When you start charging depends on how you crossed the limit. If one big sale pushes you over $30,000 in a single quarter, you charge tax starting with that sale. If you cross it gradually over several quarters, you start charging after the end of the month following the quarter you went over. For example, if you went over during January to March, you'd start charging after April. You generally have 29 days to register. The exact timing depends on how you crossed the limit, and the CRA explains it with examples on its page about when to register for and start charging the GST/HST.

If you cross the limit and don't register on time, you may owe tax on sales where you didn't collect it from your customers. And if you choose to stay unregistered, you can't claim back the GST/HST you pay on business purchases. Those refunds are called input tax credits.

If you're in BC, PST (provincial sales tax) is a separate tax run by the province, not the CRA.

Your GST/HST return has its own due dates, separate from your income tax. If you file monthly or quarterly, it's due one month after the period ends. Annual filers have their own schedule. The CRA lists the details on its page about GST/HST reporting requirements and deadlines.

Do I still file a GST/HST return if I had no sales?

Yes. If you're registered for GST/HST, you generally need to file a return for every reporting period, even when you had no sales. That's called a nil return. Most businesses must also file online, nil returns included. Filing on time helps you avoid notices and possible penalties, even when there's nothing to pay.

Do e-transfers and cash count as business income?

Yes. Money you earn is business income whether it arrives by e-transfer, cash, cheque, card or a payment app. The easiest habit is to have everything you earn land in one place you can see.

How long do I need to keep business receipts and records in Canada?

In general, six years from the end of the last tax year the records relate to. That includes invoices, receipts, bank statements and payroll files. A few records, such as ones for property you still own, or a corporation's records after it closes, have to be kept longer. You're responsible for your records even if a bookkeeper or accountant keeps them for you. The CRA's guide to keeping records covers where to keep them and what the CRA can ask to see.

It's very common to keep the bank statement but not the receipt. The statement shows that money left your account. The receipt shows what it was for, and that's usually what you need if the CRA asks you to support an expense.

What are payroll remittances?

If you pay employees, you deduct certain amounts from each paycheque. These are called source deductions: income tax, CPP (Canada Pension Plan) and EI (Employment Insurance). You also owe an employer share of CPP and EI on top.

Sending that money to the CRA is called remitting. The amounts you deduct from employees' pay aren't extra business cash. You hold them for the CRA and send them in, along with your own required employer share. For most small employers the deadline is the 15th of the month after payday, though some remit more often and some smaller employers remit quarterly. Which schedule applies depends on your size and remittance history. The CRA explains the remitter types on its page about when to remit payroll deductions.

Do I need to give my contractors a T4A?

Sometimes, yes. A T4A is a tax slip used to report certain payments, including fees paid to contractors. In general, a business that pays another business or person more than $500 in a calendar year for services is expected to report it, whether the contractor is a sole proprietor or a corporation. The slip is due by the last day of February the following year.

Construction has its own contract-payment reporting rules, and certain payments between trucking businesses now carry penalties if they aren't reported. For other industries, the CRA generally isn't assessing penalties for missing fees-for-services reporting, but the reporting requirement still exists. Ask your accountant which rules apply to you before preparing your slips.

When are my business taxes due?

If you're self-employed (or your spouse or common-law partner is), your income tax return for last year is due June 15, but any tax you owe is due April 30. These two dates are very easy to mix up. Filing on June 15 doesn't give you until June 15 to pay. When a date lands on a weekend or holiday, it moves to the next business day.

Corporations have their own due dates, and the tax owing is generally due sooner than the return. Check yours based on your year-end, which is the date your business's tax year finishes. The CRA posts a yearly list of tax deadlines for businesses and self-employed individuals.

What if I think I've missed something?

Most missed rules can be fixed, and fixing them early is almost always cheaper and calmer than waiting. The CRA has ways to correct past mistakes, and a bookkeeper or accountant can help you pick the right one. Plenty of owners put off looking because it feels like too much, and looking sooner is a kind thing to do for your future self.

What if I want someone to tell me exactly what to do?

Reading about a rule doesn't tell you which ones apply to your business, what to do next, or how to carry it out in your software. That gap is where a lot of people get stuck, and it's the gap Ready. Set. Bookkeep! (RSB) is built to close.

RSB is a Canadian bookkeeping tool that tells you exactly how to do the things that don't feel straightforward, in plain language, so you aren't piecing answers together from separate articles and videos. The guide walks you through each part in order. On the Guided plan, your dashboard gives you one clear step at a time, with a monthly checklist and the CRA deadlines that apply to your business. Diagnostic checks help you work out what needs attention and give you a prioritized plan, and Margot, RSB's built-in assistant, walks you through the fix with the exact steps in your own software, QuickBooks Online or Xero. You can ask her something like, "A customer paid my invoice by e-transfer. Where do I record it?" and get steps that fit your software.

Still unsure? Keep asking Margot. It's a bookkeeper's know-how when you need it, without waiting for an appointment or paying by the hour for a quick question. The button below takes you to a page that shows everything that's included and the price, so you can decide with all the details in front of you.

If you're a bookkeeper, I wrote a version of this for you too: How Do I Keep Up With CRA Rules as a Freelance Bookkeeper? And if you'd like the bigger picture, see Is There a Bookkeeping Guide for Canadian Small Businesses?

Keep Reading

• CRA Deadline Calendar 2026: Every Filing Date Canadian Small Businesses Need
• Business Number Registration: What It Is and When You Need One
• How Long Do I Need to Keep Business Records in Canada?

This post is general information for Canadian small businesses, not tax or legal advice. Rules, thresholds and deadlines change, so confirm current details at canada.ca or with a qualified professional.