Plain meaning
A GST/HST concept for persons whose taxable supplies are below the registration threshold, subject to detailed rules.
Also called
small supplier threshold
Key points
- Small Supplier is part of the GST/HST system and depends on whether a supply, person, or expense meets the statutory requirements.
- The distinction between taxable, zero-rated, and exempt activity can change whether tax is collected and whether input tax credits are available.
- Businesses should keep invoices, contracts, and working papers because GST/HST treatment is often reviewed through documentation.
- Registration, filing frequency, remittance timing, and rebate claims can affect cash flow even when the final tax cost is passed on to customers.
Why it comes up
Small supplier status affects whether a business must register and collect GST/HST. It can affect business cash flow, compliance work, pricing, payroll, remittances, deductions, or audit exposure.