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Canadian GST Information

If you are a foreign/cross-border business selling or planning to sell goods or services in Canada, you may be required to register for GST with the Canadian tax office.

You can always review the latest Canadian GST regulations on the Canadian Revenue Agency Website.

Canadian GST Information

Canada introduced GST in 1991. The Canadian government has enacted about 50 regulations under the federal turnover Tax Act. Canada imposes a variety of turnover taxes from the federal and provincial levels, including federal goods and services tax (Goods and Service Tax-GST), provincial sales tax (Provincial Sales Taxes-PST), unified sales tax (Harmonized Sales Tax-HST), and Quebec Sales Tax (the Quebec Sales Tax-QST). The rates for these are as follows:

① GST
The GST is a federal sales tax, and it is a federal tax levied throughout Canada. The GST uniform tax rate is 5%.The GST is a full-link VAT levy that covers almost all products and services.
However, zero tax rates will be implemented for some prescription drugs, affairs, agriculture, and fishery, and transportation services.

② PST
Provinces have their own sales tax. Currently, only federal and provincial taxes in British Columbia and Saskatchewan are collected separately, with 7% and 6%, respectively. The vast majority of the rest are combined with GST and PST, or HST. In addition, RST belongs to PST, but called different, currently only Manitoba levied RST, the tax rate is 7%.

③ HST
HST is a uniform sales tax, and HST includes the GST and the provinces' own sales tax PST.The HST rate is GST plus PST rate, and provinces have separate provincial taxes, such as 8% and Prince Edward Island tax is 10%.The HST is the same as GST and basically covers all products and services.


④ QST
Quebec, Canada, because of historical reasons, a separate QST, and Quebec sales tax, is also a VAT, the current tax rate is 9.975%.

 

 

So for example, if you are charging $100 for your product in Quebec, that will include 5% GST and 9.975% PST/QST.

GST (5%):  $4.35
QST (9.975%): $8.68

Total before tax: $86.98

For more information on calculating GST/PST/HST in Canada, please see all appropriate PST rates on the Canadian Revenue Agency website.

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When Should You Register?

If you are a foreign/cross-border company providing taxable supplies in Canada, you may be required to register for GST and comply with all associated accounting and payment requirements. 

As a non-resident, you may need to register for GST if you meet the following conditions:

You make taxable supply of goods in Canada

 

 

You are not classed as a small supplier.

A small supplier refers to a person/business whose revenue (along with the revenue of all persons associated with that person) from worldwide taxable supplies was equal to or less than $30,000 in a calendar quarter and over the last four consecutive calendar quarters.

 

If your sales are below the $30,000, you can still register voluntarily.

Need a Fiscal Representative?

In Canada, there is no obligation to appoint a local fiscal representative.

However, you can appoint an accountant to deal with you GST compliance on your behalf.

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Frequently Asked Questions

Question: Can Canadian GST be managed online?

Answer: Yes, Canadian GST can be managed online through the Canadian Revenue Agency  Online account.

However, for non-residents (other than USA residents) this option is currently not available as it requires a social security number. Therefore, non-resides notices and obligations are communicated using standard mail.

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