Four tax systems, one shop
Canada charges 5% GST nationally. Some provinces combine it with a provincial portion into one HST, for example 13% in Ontario and 15% in Nova Scotia, New Brunswick, Newfoundland and Labrador and Prince Edward Island. British Columbia, Saskatchewan and Manitoba add a separate PST, and Quebec adds the QST of 9.975%. Alberta and the territories charge GST only.
Who must register
Businesses generally have to register for GST/HST once their taxable sales pass CA$30,000 over four consecutive calendar quarters, and many register earlier to claim input tax credits on what they spend. Selling into Quebec, British Columbia, Saskatchewan or Manitoba can bring separate registration duties for the provincial tax.
What the shop must do
- Charge the rate of the customer’s province, not your own
- Show tax as its own line in the cart and on the invoice
- Keep invoices that carry your registration number
- Export clean sales reports for your accountant or QuickBooks Online
We configure shops so that tax is calculated by delivery address and every order produces an invoice your bookkeeper can use as it is. Always confirm your own registration duties with an accountant or the Canada Revenue Agency.