How HST/GST Works for Owner-Operator Truckers in Canada

If you're an owner-operator truck driver in Canada, HST and GST probably feel like alphabet soup mixed with headaches. One minute you’re hauling loads across provinces, the next you’re being told to charge tax, file returns, and claim credits—on top of maintaining your rig and staying DOT compliant.



But here’s the good news: understanding how HST/GST works can actually save you money and keep the CRA off your back. So whether you're new to the trucking game or finally ready to take your books seriously, Truckers Pro CPA is here to break it all down in plain English—with zero fluff and all the stuff you really need to know.

First Off—What Is GST and HST?

Let’s start with the basics. GST, or Goods and Services Tax, is a federal sales tax set at 5% and applies across the country. HST stands for Harmonized Sales Tax, which combines the federal GST with a provincial sales tax into one single rate. Not every province uses HST, though. For example, Ontario charges 13% HST, while provinces like Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador charge 15% HST. Other regions, such as Alberta, British Columbia, Saskatchewan, and Manitoba, stick to just the 5% GST. Quebec has its own setup, applying 5% GST plus a separate provincial sales tax called QST at 9.975%.



So how does this apply to truckers? If you’re earning over a certain threshold, you’ll be expected to register for GST/HST and may need to charge it depending on the type of freight services you offer and where you haul.

When Should a Trucker Register for HST/GST?

Here’s the magic number to remember: $30,000 in gross revenue. If you earn more than that over four consecutive calendar quarters, the CRA expects you to register for GST or HST. Once registered, you’ll need to charge GST or HST where applicable, file returns either monthly, quarterly, or annually, and—best part—reclaim the taxes you pay on business-related purchases through input tax credits.



Even if you haven’t crossed the $30K mark yet, there’s a solid argument for registering early. Why? Because you can start claiming back GST/HST on business expenses like fuel, truck repairs, and office supplies right away.

What Trucking Services Are Taxable?

This is where things get a little nuanced. Freight transportation services provided by truckers are often considered zero-rated, especially if the haul involves goods being moved between provinces or going in or out of Canada. In these cases, you don’t have to charge GST/HST to your customers—but you can still claim back taxes you paid on business expenses. That’s a big win.



However, if you're doing local deliveries within a single province (especially for unregistered individuals or businesses), those services might be fully taxable. It’s not always black and white, so it’s important to know the type of freight you’re hauling, your customer’s tax status, and whether the delivery is staying local or crossing borders.

In short: even if you're not charging GST/HST on your invoices, registering still allows you to recover the tax you pay on your business expenses.

Understanding Input Tax Credits (ITCs)

This is the part most truckers love: Input Tax Credits. These allow you to get back the GST or HST you paid on eligible business expenses. It’s like a refund from the government for being in business.



Let’s say you spent $3,000 on truck maintenance and another $1,500 on new tires, and you paid HST on both. If you're registered, you can claim that HST back. Common ITC-eligible expenses include fuel, repairs, parts, mobile phone bills (for business use), load board subscriptions, accounting fees, and even a portion of your meals and lodging on the road. It adds up fast—don’t leave that money on the table.

Filing GST/HST: What to Expect

Once you’re registered, you’ll need to file GST or HST returns on a schedule set by the CRA. Most owner-operators file quarterly, but depending on your business size and preference, you might be set up to file monthly or annually.

Each return requires you to report how much GST/HST you collected (if any), how much you paid on eligible business expenses, and the difference. If you collected more than you paid, you’ll send the CRA the difference. If you paid more than you collected, you get a refund. It’s really about matching inflow and outflow, and if your bookkeeping is in order, the process is smoother than most expect.

A Real-World Example: Over $11,000 Recovered

Let’s talk results. One of our Ontario-based clients came to Truckers Pro CPA after learning he should’ve registered for HST long ago. He had been grossing well over $150,000 per year but assumed that because freight is often zero-rated, he didn’t need to register. What he didn’t realize was that a portion of his local hauls were fully taxable, and he had been missing out on Input Tax Credits the entire time.



We helped him retroactively register, cleaned up his books, and through a voluntary disclosure, avoided major penalties. Even better? He recovered over $11,200 in GST/HST credits. That’s real cash in the bank—all because he took the step to get professional help and fix the issue head-on.

Common Mistakes to Watch Out For

Not registering when required

If you earn over $30K and don’t register, the CRA can demand back taxes—even if you never collected tax from your customers. That could come out of your own pocket. Track your revenue monthly and register before you cross the threshold.



Mixing personal and business expenses

Claiming HST on a family dinner or a personal trip to Costco? Don’t. The CRA is strict about separating business and personal purchases. If in doubt, leave it out—or better yet, talk to a pro.

Poor recordkeeping

No receipts, no credits. You need documentation for every claim. Save every receipt, use a scanner app, and set aside 10 minutes a week to keep your records in shape.

How Truckers Pro CPA Makes HST/GST Easy

Tax rules for truckers don’t have to be a nightmare. With the right setup and advice, you can stay compliant and make the most of the credits available to you. At Truckers Pro CPA, we work with drivers across Canada to:

• Assess whether your services are taxable or zero-rated
  
• Handle your registration process
  
• Set up your books for easy filing
  
• Maximize your input tax credits
  
• File accurate returns on time
  
• Respond to CRA notices or reviews
  
  

We use software that’s trucker-friendly, cloud-based, and CRA-compliant. Most importantly, we speak your language—no jargon, no complicated tax talk. Just straight answers and solid strategies that help you keep more of what you earn.