Mon–Fri: 8:30 AM – 4:30 PM
Stoney Creek, ON L8G 1C1
U.S. business selling into Canada? Find out which GST/HST and QST registrations you need
Whether you must register depends on what you sell, where the goods are when they ship, who buys, and whether you carry on business in Canada. We work out which registrations apply, whether normal or simplified GST/HST and Québec’s specified or general QST, then register you and keep returns on schedule.
or call (905) 561-1278
Your file is reviewed by Affan Khalid, CPA, CAOver 20 years of Canadian and international tax experience · 750+ GST/HST registrations handled · About Affan
- U.S. e-commerce and marketplace sellers shipping to, or storing goods in, Canada
- SaaS, app and digital-service businesses with Canadian customers
- U.S. companies already selling into Canada that may have passed a $30,000 threshold
Takes about a minute. We reply by email to confirm which registrations may apply. Submitting does not commit you to an engagement.
Request a GST/HST & QST review
A few quick questions about where you stand. We’ll follow up by email to confirm which registrations may apply.
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Which registrations apply to you?
GST/HST is registered with the CRA, and Québec’s QST separately with Revenu Québec. Four GST/HST situations cover most U.S. sellers:
1. Digital products and services → simplified GST/HST (CRA)
Applies to non-residents that don’t carry on business in Canada and aren’t registered under the normal regime. You must register once your taxable sales of digital products and services to Canadian consumers (buyers who haven’t given you a GST/HST number) pass $30,000 over any 12 months. Sales made through a registered marketplace or app store don’t count toward your total, because the platform collects on them. Simplified registrants file a simpler return, post no security deposit, and cannot claim input tax credits.
2. Goods located in or shipped from Canada → normal GST/HST (CRA)
Covers goods held in Canada (for example, in a fulfillment warehouse) or shipped from a place in Canada to Canadian consumers. Once those sales pass $30,000 over any 12 months, you register under the normal regime. The simplified regime is not available for goods. Sales facilitated by a registered marketplace are excluded from your total, because the marketplace charges and collects the tax.
3. Goods shipped to Canada from outside Canada
If you aren’t registered, don’t carry on business in Canada, and ship goods from the U.S. directly to a Canadian buyer, you generally don’t charge GST/HST on that sale. GST is collected when the goods are imported.
4. Carrying on business in Canada → normal GST/HST (CRA)
If you carry on business in Canada, the normal regime applies unless you are a small supplier. A small supplier has $30,000 or less of worldwide taxable sales, including associated businesses, in a calendar quarter and over the last four quarters. Non-residents without a permanent establishment in Canada generally post a security deposit. Under the normal regime you charge GST/HST and can generally claim input tax credits.
Québec QST (Revenu Québec, 9.975%): three different paths
- Specified system, for a supplier outside Canada that isn’t registered for normal GST/HST. Covers digital products and services (incorporeal property and services) sold to Québec consumers once those sales pass $30,000 over 12 months. Sales made through a specified distribution platform operated by a QST registrant don’t count.
- Specified system, for a supplier outside Québec that is registered for normal GST/HST. Can also cover physical goods, as well as digital products and services, supplied in Québec to Québec consumers above $30,000 over 12 months. Digital products and services sold through a specified distribution platform don’t count. Optional registration under the general QST system is possible, with security.
- General system, for goods stored in or delivered within Québec. Applies if you sell goods located or stored in Québec, shipped from within Québec, or delivered into Québec other than by mail or courier, to buyers not registered under the general QST system, and those sales pass $30,000 over 12 months. Sales through a specified platform operated by a general-QST registrant don’t count.
If you meet both a specified-system test and the general-system test, Revenu Québec says to register only under the general system. Rates range from 5% GST to 15% HST depending on the province, plus 9.975% QST in Québec.
Common situations we handle
- You ship goods from the U.S. directly to Canadian businesses and want to know whether you need to register at all.
- You keep inventory in a Canadian warehouse or marketplace fulfillment centre.
- You sell software, subscriptions or online services to Canadian consumers.
- You sell through a marketplace and need to know what the platform collects for you and what it doesn’t.
- You’ve been selling into Canada for a while and may have passed a threshold without registering.
What we set up and keep running
- GST/HST and QST registration
- Security deposit arrangements
- Invoice wording and tax codes in your billing system
- A filing calendar
- Return preparation and review
- Input tax credit review (normal regime)
- Catch-up filings where registration should have started earlier
Already registered? See our GST/HST and QST filing service.
What to have ready
- What you sell
- Whether buyers are consumers or registered businesses
- Where goods are stored and how they ship
- Provinces you sell into
- Canadian sales over the last 12 months
- Any existing Canadian tax numbers
- When Canadian sales began
Please don’t include account numbers or tax documents in the first message. We’ll arrange a secure upload.
Why Lepore & Company
GST/HST and QST registration and filing for businesses based outside Canada.
One coordinated contact
Registrations, withholding relief and filings for your Canadian activity are coordinated in one place, so nothing falls between advisers.
Registered, then kept on schedule
We handle the registrations, set up your filing calendar, and prepare and file your returns.
CPA oversight
Your file is reviewed by Affan Khalid, CPA, CA. Each registration is prepared on its own facts, working directly with CRA and, where needed, with your legal counsel.
We provide a fixed-fee quote after reviewing your information, generally following the initial call.
Lepore & Company CPA · 145 Highway 8, Stoney Creek, ON L8G 1C1 · (905) 561-1278 · Mon–Fri 8:30 AM – 4:30 PM ET
Why Affan Khalid
Affan Khalid, CPA, CA · Tax Partner & Principal
Over 20 years of Canadian and international tax experience, including senior tax roles at PwC and MNP.
Affan reviews each registration file and the filing setup around it, so the regime choice, invoicing and returns stay consistent.
Affan has handled more than 750 GST/HST registrations, with a 100% successful completion record.
Each registration is handled on its own facts. Past results don’t guarantee a future outcome, and not every seller needs to register.
Questions
Does every U.S. seller need to register?
No. A U.S. seller that ships goods from outside Canada and doesn’t carry on business here generally doesn’t register, because GST is collected at import. Registration usually becomes required in three situations:
- you carry on business in Canada above the small-supplier limit (normal regime);
- you sell digital products or services to Canadian consumers above $30,000 in 12 months (simplified regime);
- you sell goods located in or shipped from Canada to Canadian consumers above $30,000 in 12 months (normal regime).
For the two digital-economy tests only, sales facilitated by a registered marketplace or platform are excluded from your own $30,000 total. The small-supplier test for businesses that carry on business in Canada counts your worldwide taxable sales, including associated businesses, with no marketplace exclusion.
Is QST included in a GST/HST registration?
No. GST/HST is registered with the CRA, and QST is registered separately with Revenu Québec.
If we sell on a marketplace, does the platform collect the tax?
Often, but not always. A marketplace registered for GST/HST generally charges and collects GST/HST on the goods located in or shipped from Canada, and the digital products or services, that it sells for vendors who aren’t registered under the normal regime. Those sales then don’t count toward your own digital-economy $30,000 total, but they can still count toward the small-supplier test if you carry on business in Canada. If you are registered under the normal regime yourself, you may be the one collecting. Sales on your own website remain yours to assess. QST has its own platform rules.
Can we recover Canadian tax we pay on expenses?
Under the normal regime, generally yes, through input tax credits. Simplified-regime registrants cannot claim them.
We’ve already sold into Canada. Is it too late?
No, but act promptly. If registration was required earlier, the tax that should have been charged may still be owed, with interest. We’ll work out when the obligation started and how to bring registration and returns up to date.
How do we register as a non-resident?
For the normal regime, a non-resident applies for a business number and GST/HST account through CRA’s non-resident registration web form or Form RC1. Simplified-regime registration for digital-economy sellers is a separate process. We prepare and submit the application for you.
How much is the security deposit?
Under the normal regime, a non-resident without a permanent establishment in Canada generally posts security equal to 50% of its estimated net tax for the first 12 months, with a $5,000 minimum and a $1 million maximum. No deposit is required if you expect annual taxable sales in Canada of $100,000 or less and annual net tax between $3,000 owing and $3,000 refundable. Simplified registrants don’t post a deposit.
How often do we file returns?
Simplified registrants file quarterly, within one month after each calendar quarter, through GST/HST NETFILE. Under the normal regime you’re generally assigned an annual reporting period when you first register; quarterly or monthly filing applies once annual taxable sales pass $1.5 million or $6 million.
Do we charge GST/HST to Canadian business customers?
Under the normal regime, yes: you charge GST/HST on taxable sales made in Canada to business and consumer customers alike, and registered business customers can generally claim it back. Under the simplified regime, you don’t charge a customer who gives you its GST/HST registration number.
Which rate do we charge?
It depends on the province where the sale is considered made under the place-of-supply rules: 5% GST in some provinces, or HST of 13% to 15% in the participating provinces. Québec’s QST is separate. We set up the right tax codes in your billing system.
What does it cost?
We provide a fixed-fee quote after reviewing your information, generally following the initial call. The quote covers the registrations that actually apply to you.
Related services
These services often come up alongside this one. Start with the review above; we’ll tell you if any of them apply.
Selling into Canada, or about to? Check your registrations first.
or call (905) 561-1278
Related: International tax services · GST/HST and QST filing · U.S. company registration in Canada
General information only. Registration, tax collection, credits and filing obligations depend on the facts and applicable law. Submitting an inquiry does not create a professional-client relationship.