How to Track HST and GST as a Canadian Freelancer (2026 Guide)

Why HST/GST tracking is the #1 financial headache for Canadian freelancers

If you're self-employed in Canada, you've probably felt the anxiety: How much HST have I actually collected this quarter? What can I claim back? Am I going to owe the CRA money I don't have?

You're not alone. According to a 2025 survey, 63% of Canadian freelancers said tax-related stress was their biggest financial pain point — and HST/GST management was the single most confusing part of running a small business.

This guide covers everything: what HST and GST are, when you need to charge them, how to track them properly, how to claim Input Tax Credits, and how to file with the CRA without losing your mind.

HST vs. GST: What's the difference?

Canada has two overlapping consumption taxes:

• GST (Goods and Services Tax) — 5% federal tax applied across Canada
• HST (Harmonized Sales Tax) — A combined federal + provincial tax used in Ontario, Nova Scotia, New Brunswick, Newfoundland & Labrador, and PEI

Here's what you'll charge depending on where your client is located:

Province	Tax	Rate
Ontario	HST	13%
British Columbia	GST + PST	5% + 7% = 12%
Alberta	GST only	5%
Québec	GST + QST	5% + 9.975%
Nova Scotia	HST	15%
Manitoba	GST + PST	5% + 7% = 12%
Saskatchewan	GST + PST	5% + 6% = 11%
New Brunswick	HST	15%
PEI	HST	15%
Newfoundland	HST	15%

Important: You charge HST/GST based on the province where your client is located (the "place of supply"), not where you are. If you're in Alberta and your client is in Ontario, you charge 13% Ontario HST.

Do you need to register for HST/GST?

You must register once your revenue exceeds $30,000 CAD across any single calendar quarter or over four consecutive quarters. This is called the "small supplier threshold."

Before you hit $30K, registration is optional — but there's a compelling reason to register early: Input Tax Credits (ITCs). Once registered, you can claim back the GST/HST you pay on business expenses like software, equipment, internet, and office supplies.

Example: You earn $28,000/year and pay $2,000/year in HST on expenses. Registering early lets you claim that $2,000 back — even if you're not required to.

How to track HST/GST properly (the manual way)

If you're not using an app, here's the minimum tracking system you need:

1. Separate columns for net amount and HST in your spreadsheet. Never just record the gross amount — you need to know exactly how much was tax.
2. Track HST on income — every invoice you send to a Canadian client (for applicable services) needs to show the HST amount separately.
3. Track ITCs on expenses — keep receipts for every business purchase and note the HST paid. You'll deduct this from what you owe.
4. Net HST owing = HST collected – ITCs claimed — this is what you remit to the CRA each filing period.

The problem? This system breaks down fast. A missed receipt, a miscategorized expense, or a client in a different province with a different rate — and your numbers are wrong.

How VRITTI automates HST/GST tracking

VRITTI is a Canadian-built finance app that handles all of this automatically:

• Auto-calculates HST/GST per transaction based on your province and your client's province
• Tracks ITCs separately — every expense that qualifies for an Input Tax Credit is flagged
• Generates CRA-ready quarterly reports — see exactly how much you've collected, how much you can claim back, and your net remittance
• Sends reminders before filing deadlines — no more surprise CRA bills

Setup takes under 2 minutes. Free to start — no accountant required.

Claiming Input Tax Credits (ITCs): What qualifies?

You can claim ITCs on GST/HST paid on business expenses used more than 10% for business purposes. Common eligible expenses for Canadian freelancers:

• Software subscriptions (Adobe, Figma, Notion, Slack, etc.)
• Internet and phone (business-use portion)
• Office supplies and equipment
• Professional development courses
• Marketing and advertising
• Professional services (accountant, lawyer fees)
• Home office expenses (business-use portion only)
• Travel and transportation for business

What you cannot claim ITCs on:

• Personal expenses (even if partially business-related, only the business portion counts)
• Meals and entertainment (only 50% of the GST/HST is claimable as an ITC)
• Expenses from provinces that use PST instead of HST (you can't claim PST back — only the GST portion)

How to file your HST/GST return with the CRA

Filing is done through the CRA's My Business Account or by mail. Here's what you'll need:

1. Your GST/HST registration number (you get this when you register)
2. Total sales and other revenue for the period (gross, before HST)
3. Total HST/GST collected on those sales
4. Total ITCs being claimed
5. Net tax = HST collected – ITCs — this is what you remit (or get refunded)

Filing deadlines for quarterly filers: April 30, July 31, October 31, and January 31. Annual filers: June 15 (with payment due April 30).

Common HST/GST mistakes Canadian freelancers make

1. Spending the HST you collected. The HST you charge clients isn't your money — it belongs to the CRA. The biggest mistake freelancers make is treating it as revenue and spending it before filing. Set up a separate savings account and park your HST there as you collect it.

2. Forgetting about place of supply. Many freelancers charge HST based on their own province rather than the client's. This is wrong — and can result in charging the wrong rate.

3. Not keeping receipts for ITCs. The CRA can audit your ITC claims. If you can't produce a receipt showing the GST/HST paid, you can't claim it. Use an app that stores receipts digitally.

4. Missing the $30K threshold. Some freelancers go months or years over the threshold without registering, unknowingly exposing themselves to back taxes, interest, and penalties.

The bottom line

HST/GST tracking doesn't have to be painful. Register when you should, track every transaction properly, claim every ITC you're entitled to, and file on time. Use an app that understands Canadian tax rules so you're not building spreadsheets at midnight before a CRA deadline.

VRITTI was built specifically for this — Canadian tax rates, CRA-ready reports, automatic ITC tracking, and zero accounting knowledge required. Start free →