GST/HST for Online Businesses
GST/HST for online stores and digital businesses: rates by product, exports, marketplaces, foreign platforms and imports.
The short version
- A Canadian online business follows the normal GST/HST rules: register past $30,000, then charge tax at the rate where the customer is.
- Physical goods: the rate where they're delivered. Digital products, online courses, apps and software subscriptions: generally the province of the customer's address.
- Sales to customers outside Canada are generally zero-rated (0%), but still count toward the $30,000 threshold, and you still claim input tax credits.
- Marketplaces (Amazon, Etsy and others) may collect GST/HST for some sellers who aren't registered; once you're registered, it's generally your job.
- Foreign platforms you buy from (ads, software) may charge you GST/HST; give them your GST/HST number so they don't, since you can't claim it back from a simplified-regime vendor.
GST/HST for Online Businesses
An online business can have customers in all 13 provinces and territories before lunch. That's good for sales and awkward for GST/HST, because the rate follows the customer, and digital products, physical shipments and marketplace sales each have their own wrinkle. Here's how to set up your store, your invoices and your returns so the tax works on autopilot.
What to Charge, by Product Type
| You sell | Rate based on | Example |
|---|---|---|
| Physical goods shipped to customers | Province of delivery | An Ontario store ships to Halifax: 14% HST |
| Digital downloads, e-books, music | Customer's address province (intangible property) | An Ontario creator sells to a Calgary buyer: 5% GST |
| Software as a service, memberships, subscriptions | Customer's address province | An Ontario SaaS sells to a Moncton business: 15% HST |
| Online courses and coaching delivered live online | Generally the customer's address province | |
| Any of the above to customers outside Canada | Generally zero-rated (0%) | Sales to US and UK customers |
Shopify, WooCommerce and most platforms can apply tax by customer address once you enter your GST/HST registration. Turn it on, and test with a few addresses. The rates are on rates by province.
Is your store charging the right GST/HST?
Describe what you sell, where your customers are and which platforms you use. The SmartFile checks your tax settings against the rules, flags zero-rated sales, and tells you whether you need to register.
Marketplaces
- Not registered: under the digital economy rules, some marketplaces collect and remit GST/HST on certain sales by unregistered sellers, particularly goods shipped from fulfillment warehouses in Canada. Check what your marketplace does.
- Registered: you generally charge and remit the tax yourself, and the marketplace's settings must reflect that.
- Fees: marketplace and payment processor fees usually carry GST/HST; claim it as an ITC.
Marketplaces also report sellers' income to CRA each year. The income tax side is on online seller taxes.
Buying From Foreign Platforms
Since 2021, many non-resident digital vendors (ad platforms, software, streaming) are registered under a simplified GST/HST regime and charge Canadian customers tax. A simplified-regime registrant can't issue invoices that support an ITC, so if you're registered, enter your GST/HST number in the vendor's billing settings to stop being charged. Vendors registered under the normal regime issue invoices you can claim from.
Imports
Importing inventory: GST (or HST) is charged at the border on most commercial imports, plus any duty, and you claim the GST/HST as an ITC with the customs documents. Low-value shipments by post and courier have their own thresholds; check with the Canada Border Services Agency before you price.
Registration and the $30,000
All taxable sales count, including zero-rated exports. A store selling mostly to US customers can pass $30,000 and need to register even though it charges 0% on most sales, and it then gets refunds of the GST/HST on its costs. See do I need a GST/HST number? and how to register.
Selling to US Customers
US states have their own sales taxes and thresholds for out-of-state sellers; big marketplaces usually collect them. That's outside Canadian GST/HST and we don't cover it.
Worked return examples, including an exporter refund, are on net tax calculation. Back to the GST/HST guide.
Online Business GST/HST Questions
Which GST/HST rate do I charge online customers?
For physical goods, the rate of the province where they are delivered. For digital products and most online services, generally the rate of the province of the customer’s address.
Do I charge GST/HST to customers outside Canada?
Generally not. Exports of goods and most digital products and services to non-residents are zero-rated, so you charge 0% but can still claim input tax credits.
Do zero-rated export sales count toward the $30,000 threshold?
Yes. All taxable sales, including zero-rated sales, count toward the small supplier threshold.
Does Amazon collect GST/HST for me?
In some cases, for sellers who are not registered. Once you are registered, you are generally responsible for charging and remitting the tax yourself. Check your marketplace’s settings.
Why are foreign platforms charging me GST/HST?
Many non-resident digital vendors are registered under a simplified regime and charge Canadian customers tax. Registered businesses should give the vendor their GST/HST number to stop being charged.
Sources: CRA, GST/HST for digital-economy businesses; Place-of-supply rules. Checked October 2026. Rules for intangible property with use restrictions, low-value import thresholds and marketplace collection are summarized; we could not confirm how each marketplace currently handles unregistered sellers.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.