Quick Answer
Usually not. A Canadian charity is a small supplier if it passes either the $50,000 taxable-supplies test or the $250,000 gross-revenue test. For the taxable-supplies test, both the current calendar-quarter total and the total for the previous four consecutive calendar quarters must stay at or below $50,000. For the gross-revenue test, the charity compares each of its two immediately preceding fiscal years with $250,000; its first fiscal year is automatically within this test. Registration is generally required only when both tests are failed, subject to special rules such as taxable real-property sales.
Charities have unusual GST/HST rules. The small-supplier threshold is higher than for businesses, most charity activities are exempt from GST/HST anyway, and the PSB rebate operates regardless of registration status.
The two charity tests
A charity is a small supplier — and does not have to register — if it passes either of two tests:
- The taxable-supplies test. Both the total taxable supplies in the current calendar quarter and the total for the previous four consecutive calendar quarters are $50,000 or less. This is the charity-specific threshold.
- The gross-revenue test. Gross revenue from all sources was $250,000 or less in either of the two immediately preceding fiscal years. A charity is automatically within this test only in its first fiscal year; in its second fiscal year it tests the first year’s gross revenue.
Registration becomes mandatory only when the charity fails both tests. Passing either one is enough to stay a small supplier, subject to special rules such as taxable real property sales.
What’s “taxable” for a charity
Many charity activities are exempt from GST/HST under specific rules:
- Most fundraising activities (with conditions)
- Membership fees (typically exempt)
- Most program services delivered to beneficiaries
- Sales of donated goods (yard sales, donated items in thrift shops)
Taxable activities can include:
- Sales of new goods (a charity gift shop selling new merchandise)
- Commercial-style consulting or services
- Some sponsorships, depending on what the sponsor receives
- Bookstore-style sales not eligible for the donation-of-goods exemption
You don’t need to register to claim the PSB rebate
This trips up many small charities. The PSB rebate is available to all registered charities regardless of GST/HST registration. A small charity that has never registered can still file Form GST66 to recover the federal 50% rebate plus the provincial portion. There is no requirement to register first.
See also
- What is the GST/HST PSB rebate?
- The GST/HST PSB rebate guide
- NPO bookkeeping for Canadian not-for-profits — GST/HST for organizations that are not registered charities works differently.
Related questions
What is the small-supplier threshold for a Canadian charity?
A charity is a small supplier if it passes either of two tests. The taxable-supplies test looks at whether both the current calendar quarter and the previous four consecutive calendar quarters are $50,000 or less. The gross-revenue test looks at whether gross revenue was $250,000 or less in either of the two immediately preceding fiscal years.
Are membership fees subject to GST/HST?
Membership fees are typically exempt, as are most fundraising activities subject to conditions, most program services delivered to beneficiaries, and sales of donated goods. Taxable activities can include sales of new goods, commercial-style consulting, and some sponsorships depending on what the sponsor receives.
Does a charity need to register for GST/HST before claiming the PSB rebate?
No. The PSB rebate is available to all registered charities regardless of GST/HST registration. A charity that has never registered can still file Form GST66 to recover the federal 50% portion plus any applicable provincial portion.
Sources
- CRA — RC4082 GST/HST Information for Charities — Canada Revenue Agency
Last Updated: July 2026
Sources reviewed: July 10, 2026
General information only. This page is not legal, tax, assurance, or professional advice for any specific organization. Confirm decisions with the CRA, your CPA, and legal counsel for your facts.