GST, PST and HST in Canada

Canada Tax Guide

Canada GST/HST Registrations
and Returns

In Canada, GST (Goods and Services Tax) applies nationally at 5%, with provincial HST rates varying by region. VAT numbers begin with the ‘GST/HST’ designation. Everything you need to stay compliant.

Canada VAT
5%
Standard GST Rate
CAD 30,000
Registration Threshold
Quarterly
Filing Frequency
2–4 Weeks
Average Registration
Latest Updates

Canada GST/HST News

06 June 2025

GST Relief for First-Time Home Buyers of New Homes Valued Up to $1.5 Million

Canada’s latest GST relief initiative provides first-time home buyers with a complete rebate on federal GST for newly constructed homes priced up to $1 million, alongside a partial rebate for homes priced up to $1.5 million.

06 June 2025

Prime Minister Carney to Waive GST for First-Time Home Buyers

In response to Canada’s housing crisis, the new government is taking decisive steps to relieve pressure on prospective homeowners by eliminating GST for those purchasing their first home.

VAT Registration Requirements
VAT Registration

Is GST/HST registration required in Canada?

Whether you need GST/HST registration in Canada depends on your sales channels, product type, and whether you use a marketplace or your own store.

Your business’s location
Your target customers
Nature of products or services
Your sales destinations
Where stock is held at the point of sale

🕐 Looking for advice tailored to your situation? Schedule a free 15-minute consultation with one of our specialists today.

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Business Scenarios

My B2C business is based outside the EU

For international sellers, Canada’s GST/HST obligations depend on where your goods are located at the point of sale and how they reach your customers.

Selling goods online

Selling goods on your website

Running your own online store brings additional VAT responsibilities. If you hold stock in Canada, you must register for VAT there. When selling goods stored in another country to customers in Canada, you have two pathways to compliance.

Choosing the right option depends on your current setup and future plans.

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Importing goods to Canada

Importing goods to Canada

If products are shipped from outside your home country at time of purchase, you have three compliant methods:

1Register for VAT in Canada
2Use a fiscal representative
3Deliver using Delivered at Place (DAP)
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Fast VAT Registration

Get Registered for VAT, Fast

Ready to start selling to Canada customers? Begin your VAT registration today, and we can secure your VAT number in as little as three working days.

Marketplace sales
Amazon & eBay

Selling goods on a marketplace

Since 2021, Canadian platforms like Amazon.ca collect and remit GST/HST on qualifying B2C sales. Marketplaces handle tax when:

You, the seller, are based outside the country
It’s a B2C transaction
Goods ship from outside Canada in parcels valued at CAD 150 or less
Or the goods are stored in Canada at the time of sale

Important: Storing goods in Canada still triggers a VAT registration requirement there, even if the marketplace collects VAT. Orders above threshold limits require your own VAT registration in Canada or a DAP shipment.

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Don’t let VAT get in the way of marketplace growth

Expand your marketplace presence in Canada while staying fully VAT compliant. We simplify compliance so you can focus on selling.

Make It Easy
Digital Goods

Selling Digital Services and Digital Goods to Canada

Digital services in Canada include eBooks, downloadable software, online courses, and streaming services. International sellers providing digital services to Canadian consumers must register for GST once sales exceed CAD 30,000.

To sell digital services to Canada customers, you can choose one of two registration routes depending on how your service is delivered.

Expert advice recommended: Determining whether your offering qualifies as “electronically supplied” is complex and has major VAT implications. We recommend consulting an expert if you sell digital services.

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Digital services
EU-Based Sellers

My B2C business is based in the EU

Assuming you are not established in Canada, EU-based sellers can trade up to EUR 10,000 per year to other EU markets before VAT registration is required.

EU B2C selling
🏠

Stock in Canada

Holding inventory in Canada creates a VAT obligation. You must either register there or use the One Stop Shop (OSS) scheme in your home country.

🎉

Stock elsewhere in EU

Each EU country where you store goods or have customers may trigger a separate VAT requirement. Either register locally or consolidate via OSS.

🌎

Stock outside the EU

For goods delivered from outside the EU, choose among: VAT registration in Canada, IOSS registration, or Delivered at Place (DAP). For services, you must register for OSS with your home tax authority when selling to EU consumers.

Find Your Path

Feeling Confused? Take the EU VAT Quiz

There are many variables. In under a minute, discover whether you need IOSS, OSS, Non-Union OSS, or a standard VAT registration.

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VAT on B2B Sales
Business to Business

GST/HST on Sales to Canadian Businesses

When selling B2B in Canada, tax obligations shift. If your Canadian customer is GST-registered, they may self-assess via reverse charge. Registration may still be required if you store goods in Canada.

🌎 Based outside the country, selling B2B

If your Canada customer is VAT-registered, you generally invoice with the “reverse charge mechanism,” and they declare VAT locally.

🇪🇺 Based in the country, selling B2B

In many cases, cross-border B2B supplies are zero-rated when both parties are VAT-registered. You still must follow Canada invoicing and reporting requirements.