You started your business in January 2008 and made the following sales throughout that year:

Because you did not exceed the $30,000 limit in the four consecutive calendar quarters, you are considered a small supplier throughout 2008, the first quarter of 2009, and the month of April 2009. At the end of every quarter, you have to make the same calculation to determine if you are still a small supplier.

This example shows what happens when you exceed the $30,000 limit at the end of four consecutive calendar quarters:

• you cease to be a small supplier at the end of the following month (end of April 2009) as you exceeded the $30,000 limit in the last four consecutive calendar quarters;
• you have to start collecting GST/HST in May 2009; and
• you have 30 days after the day you first make a sale other than as a small supplier to apply to be registered.

In this particular case, if you make a sale other than as a small supplier on May 5, you have to register before June 4.

This example explains what happens if you exceed the $30,000 limit in one particular calendar quarter:

• you cease immediately to be a small supplier as you exceeded the limit in one particular calendar quarter;
• you have to charge the tax on the sale that made you exceed the limit even if you are not yet registered; and
• you have 30 days after the day you make the sale that made you exceed the small supplier limit to apply to be registered.

In this particular case, if you made the sale that exceeds the small supplier limit on September 23, you have until October 22 to register.