Collect tax in Canada
Learn how to use Stripe Tax to calculate, collect, and report tax in Canada.
The Canadian tax system consists of a combination of federal and provincial taxes. The goods and services tax (GST) applies nationally. The different provinces handle taxes in a variety of ways. Learn more in our guide to tax in Canada.
Provincial sales taxes in New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island are combined with the GST to implement the harmonized sales tax (HST), which operates in the same way as the GST.
Separate taxes are collected in:
- British Columbia—provincial sales tax (PST)
- Manitoba—retail sales tax (RST)
- Quebec—Quebec sales tax (QST)
- Saskatchewan—provincial sales tax (PST)
Alberta, Northwest Territories, Nunavut, and Yukon don’t apply any provincial sales tax.
When to register for tax collection![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
The Canadian federal government and the four provinces that levy a separate provincial sales tax define their own tax registration thresholds and procedures.
- If you’re a non-Canadian business, Stripe monitors your tax registration thresholds separately for the federal level and every province with separate provincial taxes.
- If your business is based in Canada, Stripe monitors your tax registration thresholds for provinces with separate provincial taxes where your business isn’t established.
Use the Thresholds tab to get insights about your potential tax registration obligations in Canada. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the monitoring tool works.
After you’ve registered to collect tax in a province or with the government, add your registration to Stripe in the Registrations tab in the Dashboard to start collecting tax on your transactions in that location.
Federal tax threshold![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
Canada applies different regulations to remote businesses selling to Canadian consumers, depending on the product type and origin.
- Digital products or services qualify for simplified GST/HST registration when sales exceed 30,000 CAD over any 12-month period.
- Goods shipped from a warehouse in Canada to Canadian consumers require normal GST/HST registration when sales exceed 30,000 CAD over any 12-month period.
Threshold: 30,000 CAD
Time frame: 12 months
Included transactions: Sales of digital products and services to Canadian individuals, and sales of goods shipped from a warehouse in Canada to Canadian individuals.
Find more information on how to register for GST/HST on the federal government website.
If a remote business sells digital services or goods into Canada exclusively through online marketplaces that are responsible for collecting tax on these sales, the seller isn’t required to register for GST/HST. These sales don’t count toward the seller’s registration threshold.
British Columbia![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
Businesses based outside British Columbia (BC) must register to collect PST if their taxable sales in BC exceed 10,000 CAD in the past 12 months or are expected to exceed that amount in the next 12 months.
Threshold: 10,000 CAD
Time frame: 12 months
Included transactions: Any taxable transaction.
Find more information on how to register for PST on the British Columbia government website.
If a remote business sells digital services or goods exclusively through online marketplaces that are responsible for collecting tax on these sales, the seller isn’t required to register for PST. These sales don’t count toward the seller’s registration threshold.
Manitoba![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
Businesses located outside Manitoba that perform taxable sales of goods and services in Manitoba must register to collect RST. Manitoba doesn’t apply any monetary registration thresholds to remote sellers.
Threshold: 1 transaction
Time frame: 12 months
Included transactions: Any taxable transaction.
Find more information on how to register for RST on the Manitoba government website.
If a remote business sells digital services or goods exclusively through online marketplaces that are responsible for collecting tax on these sales, the seller isn’t required to register for RST. These sales don’t count towards the seller’s registration threshold.
Quebec![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
Remote businesses selling digital products or services to individuals in Quebec must register under the specified QST regime if their sales exceed 30,000 CAD in any 12-month period. Remote businesses selling goods to individuals in Quebec must register under the general QST regime if their sales exceed 30,000 CAD in any 12-month period—this applies to goods shipped from a warehouse in Quebec or from outside Quebec by means other than mail or courier. The specified QST regime doesn’t apply in this situation.
Threshold: 30,000 CAD
Time frame: 12 months
Included transactions: Sales of digital products and services and certain sales of goods to individuals in Quebec.
Find more information on how to register for QST on the Quebec government website.
If a remote business sells digital services or goods exclusively through online marketplaces that are responsible for collecting tax on these sales, the seller isn’t required to register for QST. These sales don’t count toward the seller’s registration threshold.
Saskatchewan![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
Businesses located outside Saskatchewan that sell taxable goods and services in Saskatchewan must register to collect PST. Saskatchewan doesn’t apply any monetary registration thresholds to remote sellers.
Threshold: 1 transaction
Time frame: 12 months
Included transactions: Any taxable transaction.
Find more information on how to register for PST on the Saskatchewan government website.
If a remote business sells digital services or goods exclusively through online marketplaces that are responsible for collecting tax on these sales, the seller isn’t required to register for PST. These sales don’t count toward the seller’s registration threshold.
How we calculate taxes![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
Stripe determines whether federal tax (GST or HST), provincial tax (PST, QST, or RST) or a combination of both types of taxes apply to the specific transaction.
Sales of goods and services within Canada are generally taxed based on the customer’s location. Goods shipped from Canada to customers abroad are zero-rated exports for Canadian tax purposes. While these transactions might incur taxes and customs duties in the destination country, Stripe doesn’t calculate them. Remote sellers don’t need to collect GST or HST on goods sold into Canada from abroad, but they must collect tax if the goods are shipped from a warehouse in Canada.
Sales of services provided from Canada to customers in other countries are generally not taxable in Canada but the tax of the customer country might apply. Sales of services provided to Canadian customers by sellers established in other countries are generally taxable in Canada:
- Remote sellers must collect GST/HST for sales to individuals, but not for sales to business customers who provide their GST/HST registration number.
- Remote sellers must collect QST on sales to individuals in Quebec, but not on sales to business customers who provide their QST registration number.
- Remote sellers must collect provincial sales taxes for sales in Manitoba, Saskatchewan, and British Columbia regardless of individual or business customers. To treat sales to customers in these provinces as exempt from provincial sales taxes, set the customer tax status to
exempt
.
Report and file your taxes![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
Stripe provides reports of your completed tax transactions. To access these reports, navigate to the Registrations tab. Learn more about the different types of reports.
You’re responsible for filing and remitting your taxes in Canada. Stripe doesn’t file taxes on your behalf.
Marketplace tax liability![](https://b.stripecdn.com/docs-statics-srv/assets/fcc3a1c24df6fcffface6110ca4963de.svg)
Canada defines “digital platform operators” as marketplace operators that might have tax collection obligations because they control a transaction between a seller and a buyer (for example, by handling payments and passing them to the seller). This definition excludes businesses solely listing goods or processing payments. Digital platform operators must collect GST/HST on:
- Sales of digital products and services to Canadian individuals by remote sellers not registered under the normal GST/HST regime.
- Sales of goods by non-registered sellers to Canadian customers if the goods are in Canada at the time of sale.
- Provision of short-term accommodation if the property owner isn’t GST/HST registered. This typically includes renting residential units for less than one month. Stripe Tax doesn’t support accommodation services.
Canadian provinces with separate provincial taxes have similar rules on platform tax collection obligations.