Canada GST/HST Filing for Non-Resident Sellers 2026: Deadlines, ITCs and Simplified Regime | Crossborder Tax Tool
Updated 2026-08-23
File GST/HST returns with the CRA for every reporting period. Most annual filers must file and pay 3 months after fiscal year-end (listed financial institutions: 6 months; some sole proprietors with a 31 December year-end file by 15 June). Monthly and quarterly filers file and pay 1 month after the period ends. You report GST/HST on Canadian taxable supplies, claim ITCs, and remit the net. Late-filing penalty and interest follow the CRA tables — do not treat EU OSS rules as Canadian filing rules.
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Who must file GST/HST returns in Canada
Non-resident sellers who register for GST/HST must file returns with the CRA. Registration is required if you make taxable supplies in Canada and exceed the C$30,000 small-supplier threshold over four consecutive quarters. Voluntary registration is available below the threshold, allowing you to claim ITCs on Canadian expenses.
Non-resident sellers without a permanent establishment in Canada can choose between the simplified filing regime (annual, flat-rate) and the regular regime (annual or quarterly, with ITCs). The choice is made at registration on Form RC1 and cannot be changed without CRA consent.
GST vs HST: provincial rate differences
Canada has a 5% federal GST. Five provinces (Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island) have harmonized their provincial sales tax into HST, ranging from 13% to 15%. When selling into HST provinces, you charge HST at the destination rate; when selling into non-HST provinces, you charge 5% GST.
Quebec charges QST (9.975%) separately from GST. British Columbia charges PST (7%) on top of GST. Alberta, Nunavut, NWT and Yukon charge only the 5% GST. Your GST/HST return must correctly separate supplies by destination province.
Claiming Input Tax Credits as a non-resident
Under the regular filing regime, you can claim ITCs for GST/HST paid on expenses related to your Canadian commercial activities: accounting and legal fees, shipping within Canada, advertising directed at Canadian consumers, and software used for Canadian sales. You need documentary evidence — a tax invoice showing the supplier's GST/HST number and the tax amount.
ITCs must be claimed within 4 years of the return due date. Under the simplified regime, you cannot claim any ITCs — the flat rate of 2–4% of taxable supplies is your total remittance. If your Canadian expenses are significant, the regular regime is usually more beneficial.
Filing deadlines and payment schedules
Most annual filers: file and pay 3 months after fiscal year-end (a 31 December corporation is due 31 March). Quarterly and monthly filers: one month after the period ends. Listed financial institutions generally have 6 months. Confirm the date in your CRA account.
Instalment payments may be required for large registrants. All amounts must be reported in Canadian dollars — use the Bank of Canada rate on the transaction date. Keep exchange rate records for at least 6 years.
Penalties and the Voluntary Disclosures Program
Late filing penalty: 1% of balance owing, plus 0.25% per month (max 12 months = 4% total). Repeat offenders: 5% + 1% per month (max 20 months = 25%). Late payment interest: CRA prescribed rate, at the CRA prescribed rate then in force (compounded as CRA publishes; check the current rate table). Gross negligence penalty: 25% of understated tax plus 50% of understated penalty.
If you discover errors after filing, the CRA Voluntary Disclosures Program (VDP) can reduce or eliminate penalties if you come forward before the CRA initiates an audit. This is particularly relevant for non-resident sellers who under-reported Canadian taxable supplies in prior periods.
Paying CRA from overseas
Filing a GST/HST return and remitting the net tax are separate. The Canada Revenue Agency expects payment in CAD. Non-resident sellers often need CAD account details or another CRA-accepted remittance path rather than a home-country-only bank.
Use the payment options on the CRA site for GST/HST amounts owing. If you need CAD details or transparent FX from marketplace payouts, a multi-currency business account such as Wise Business is one optional tool. We do not remit tax for you; eligibility is decided by the provider.
Primary sources
This page is grounded in the primary materials below. Rules change, so open the source and confirm the current version before acting.
FAQ
How do I claim Input Tax Credits (ITCs) as a non-resident?+
Non-resident sellers registered for GST/HST can claim ITCs for GST/HST paid on expenses that relate to your commercial activities in Canada. Eligible expenses include: accounting and legal fees for Canadian tax compliance, shipping and logistics within Canada, advertising directed at Canadian consumers, and software/subscriptions used for Canadian sales. To claim an ITC, you need documentary evidence — a tax invoice showing the supplier's GST/HST registration number and the tax amount. ITCs must be claimed within 4 years of the return due date.
What are the GST/HST return due dates?+
Most annual filers must file and pay 3 months after fiscal year-end. Monthly and quarterly filers file and pay 1 month after the period ends. Listed financial institutions generally have 6 months after year-end. Some sole proprietors with a 31 December year-end pay by 30 April and file by 15 June. Confirm dates in your CRA account.
Can non-resident sellers use the simplified filing regime?+
Yes. Non-resident sellers who are not carrying on business in Canada (no permanent establishment) can use the simplified GST/HST registration and filing regime. Under this regime: you file annually instead of quarterly; you do not need to collect GST/HST on your sales (instead, you remit a flat rate based on your total sales); the flat rate varies by province (typically 2-4% of taxable supplies). However, under the simplified regime you cannot claim ITCs. If your Canadian expenses are significant, the regular filing regime may be more beneficial. You elect the simplified regime when you register by indicating your preference on Form RC1.
How do I handle exchange rate differences for GST/HST reporting?+
All GST/HST amounts must be reported in Canadian dollars (CAD). For transactions in foreign currency, use the Bank of Canada exchange rate on the date of the transaction. The CRA accepts: (1) the actual exchange rate on the transaction date; (2) the Bank of Canada daily average rate; or (3) a reasonable rate from a recognized financial institution. You must convert each transaction individually — you cannot use an annual average rate. For FBA sellers, the taxable supply date is the date of delivery to the Canadian customer. Keep records of the exchange rates used for at least 6 years.
What are the penalties for late or incorrect GST/HST filing?+
Late filing penalty: 1% of the balance owing, plus 0.25% per complete month late (maximum 12 months), for a maximum total of 4%. Repeat offenders (penalty issued in any of the prior 3 years): 5% + 1% per month (max 20 months = 25%). Late payment interest: CRA prescribed rate, at the CRA prescribed rate then in force (compounded as CRA publishes; check the current rate table). Gross negligence penalty: 25% of the understated tax plus 50% of the understated penalty, if the CRA determines the error was made knowingly or under gross negligence. Voluntarily disclosed errors through the Voluntary Disclosures Program (VDP) can reduce or eliminate penalties if you come forward before the CRA initiates an audit.
How do non-resident sellers pay GST/HST to the CRA?+
Pay any net tax in CAD using a CRA-accepted method (see Canada.ca GST/HST payments). Non-resident sellers often use a multi-currency business account that can hold CAD details, convert a payout, then remit to the CRA. Always confirm the official payment channels. This site does not process payments.
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