Guides
Canadian Fence Contractor HST Registration: When Is It Required?
Canadian fence contractor HST registration depends on CRA small supplier rules, Quebec QST obligations, and ITC claims. Late registration triggers penalties.
What to take away
- CRA registration is mandatory once a Canadian fence contractor passes the small supplier threshold.
- Quebec contractors have separate QST registration obligations through Revenu Québec, with its own small supplier threshold.
- Registered contractors can claim input tax credits for GST/HST paid on materials, but unreported revenue creates audit risk.
- Municipal building permits and private contracts are separate rules that HST registration does not replace.
- Late registration means CRA can assess tax from the date you should have registered, not the date you file.
Who has jurisdiction
CRA administers federal GST/HST under the Excise Tax Act. Revenu Québec administers QST in Quebec, often on a combined return. Municipalities issue fence building permits under provincial building codes. Ontario's Construction Act adds prompt payment and lien rules for projects with building permits, though it does not govern tax registration.
Private contracts can require proof of tax registration before you invoice. The three layers operate independently, so a satisfied municipal permit office does not mean CRA is satisfied. A fence project in Gatineau triggers both federal HST and Quebec QST, but a project in Ottawa triggers only federal HST.
Tax and Permit Authorities
GST/HST
- Authority
- CRA
- Threshold
- $30,000
- Trigger
- Exceed or voluntary
QST
- Authority
- Revenu Québec
- Threshold
- $30,000
- Trigger
- Exceed or voluntary
Building permit
- Authority
- Municipal office
- Threshold
- No revenue threshold
- Trigger
- Height, pool, setback
| Layer | Who administers it | What it covers |
|---|---|---|
| GST/HST | Canada Revenue Agency | Federal tax on taxable supplies across Canada |
| QST | Revenu Québec | Quebec tax on sales made in Quebec |
| Building permit | Local municipality | Fence height, pool enclosures, setbacks, property lines |
What triggers registration
The CRA small supplier threshold is $30,000 in taxable supplies over the preceding four consecutive calendar quarters. CRA guidance on when to charge and collect GST/HST explains the lookback rule. Taxable supplies include most fence installation and repair work, even if the customer is a homeowner.
The $30,000 figure is set in the Excise Tax Act and has applied since the GST took effect on January 1, 1991.
Small Supplier Threshold
$30,000
Taxable supplies over four quarters
Includes most fence installation and repair
Zero-rated exports are excluded
One large commercial job can trigger mid-quarter
Zero-rated exports are excluded, but a single large commercial job can push you over the threshold mid-quarter. Municipal building permits have their own triggers, often fence height, pool enclosures, or property line setbacks. Quebec has a $30,000 QST small supplier threshold too, but it applies separately to sales in Quebec.
Worked example. A fence contractor bills $6,200 in the first quarter, $7,400 in the second, $9,100 in the third and $8,600 in the fourth. The four-quarter total is $31,300, so this contractor is no longer a small supplier and must register with the CRA. The figures are illustrative.
Once registered, you charge GST at 5% or HST at 13% in Ontario and 15% in most Atlantic provinces. Nova Scotia's HST fell to 14% on April 1, 2025. Quebec QST is 9.975%, charged on the same base as the GST.
What to submit
A Canadian fence contractor registers for GST/HST using CRA Form RC1. You need your legal business name, trade name, address, fiscal year-end, and banking details for direct deposit. If you already have a business number, include it. Quebec contractors also register for QST with Revenu Québec, often through the same CRA process if selected.
For a municipal fence permit, you submit site plans, fence height, material specs, and property line drawings. Private contracts may ask for your GST/HST registration number before signing. Fence Contractor Customer Financing explains payment formats that still require HST on the full invoice, not the financed amount.
Follow these steps to register:
Register for GST/HST and QST
- Gather business number, trade name, banking details
- Complete Form RC1 online or by mail
- Revenu Québec prompts QST registration if Quebec
- Print GST/HST confirmation and keep with records
Revenue patterns by customer type matter for threshold timing. A contractor who works mostly for homeowners may cross the $30,000 mark slowly, while a single commercial project can trigger registration in one month. Commercial vs Residential Fence Contracting shows how job mix changes the timing of crossing that line.
How long approval takes
CRA online registration usually issues a GST/HST number immediately, while paper Form RC1 can take two to three weeks. Revenu Québec registration for QST is typically processed within five business days if filed online. Municipal fence permit approval times vary by city, often one to four weeks for simple fence projects, but pool enclosures or variance requests can take longer. The tax registration does not shorten a municipal permit review. Canadian Fence Contractor Lien Rights explains a separate clock you must respect once work starts.
Approval Times
- CRA onlineGST/HST number immediately
- CRA paper2-3 weeks
- Revenu Québec online5 business days
- Municipal permit1-4 weeks
What happens if you skip it
If you do not register when required, CRA can assess GST/HST from the date you crossed the threshold, not the date you file. Penalties start at 4% of the tax owing plus 1% per month, and interest compounds daily. Revenu Québec applies its own late registration penalty for QST. You also lose the ability to claim input tax credits on purchases made while unregistered, which can leave you with unrecoverable GST on lumber and concrete.
Skipping municipal fence permits can bring a stop-work order, and some municipalities will not issue a final inspection without proof of tax registration. Keep your registration number on every quote and invoice because homeowners forward those documents to CRA during audits.
