This is general information, not tax advice. GST/HST for travel advisors has real complexities, especially if you work under a host. Confirm your own situation with an accountant.
Do you have to register?
Not at first. The CRA treats you as a small supplier until your taxable revenue goes over $30,000, and small suppliers don’t have to register. Commission income generally counts toward that total. It’s measured two ways:
- In a single calendar quarter: if you go over $30,000 in one quarter, you stop being a small supplier with the sale that takes you over, and have to start charging GST/HST from that sale.
- Over four quarters in a row: if you go over $30,000 across the last four calendar quarters (but not in any one), you stop being a small supplier at the end of the month after the quarter you crossed it in.
The test is rolling, so check it every quarter rather than once a year. You can also register voluntarily before you reach the threshold; your accountant can tell you whether that makes sense for you.
Source: CRA, “When to register for and start charging the GST/HST”.
The rates
Where the commission is taxable, the rate depends on the province. Provinces with HST combine federal and provincial tax into one rate.
| Province or territory | Rate |
|---|---|
| Alberta, British Columbia, Manitoba, Quebec, Saskatchewan, Northwest Territories, Nunavut, Yukon | 5% GST |
| Ontario | 13% HST |
| Nova Scotia | 14% HST (15% before April 1, 2025) |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | 15% HST |
Which province’s rate applies is decided by the CRA’s place-of-supply rules, which aren’t always simply where you live. Source: CRA GST/HST rates. Rates change, so check the CRA page for the current figures.
Not all commission is taxable
This is the part many advisors miss. The CRA says a travel agent’s commission is taxable unless the service is zero-rated, and it’s zero-rated when the travel it relates to is. The CRA’s own examples:
- An agency sells a flight from Toronto to Paris on behalf of an airline. The flight is zero-rated, so the commission the airline pays is zero-rated too.
- An agency books a hotel in France. The accommodation is supplied outside Canada, so the commission the hotel pays is zero-rated.
Zero-rated means GST/HST applies at 0%: you don’t charge it, but it’s still a taxable supply. Source: CRA, GST/HST information for the travel and convention industry.
If you work under a host
The CRA’s examples describe an agency paid directly by the airline or hotel. If you’re paid by a host agency, how GST/HST applies to what they pay you can depend on how your arrangement is set up. Ask your host how they handle GST/HST on your payments, and take that answer to your accountant.
Setting money aside
Once you’re registered, the GST/HST you collect isn’t yours. It’s held for the CRA until you file. The simplest habit is to move it aside every time a payment lands, so the bill doesn’t come as a surprise.
For example, if you’re registered in Alberta and a $500 taxable commission arrives with $25 GST on top, that $25 goes straight to the set-aside account. Your accountant can also tell you whether the CRA’s quick method would suit you, which changes how much you remit.
How Arrivals helps
Arrivals works out a GST/HST set-aside on every booking at the rate you choose, and shows it on your dashboard and year-end report. It applies your rate to all of your commission, so if some of yours is zero-rated, the set-aside will be higher than what you owe. Treat it as a cautious estimate and let your accountant make the call. See the year-end report.