Canada GST/HST Registration for Cross-Border Sellers: Threshold, Rates and Requirements

The C$30,000 threshold applies to your worldwide taxable supplies (not just Canadian sales). If your total global revenue from taxable supplies exceeds C$30,000 over any four consecutive calendar quarters, you lose 'small supplier' status and must register for GST/HST. You must register within 29 days of exceeding the threshold. Once registered, you must charge GST/HST on all taxable supplies made in Canada, regardless of amount. You can also register voluntarily before reaching the threshold to claim input tax credits.

Federal GST: 5% (all provinces). HST provinces: Ontario 13%, Nova Scotia 15%, New Brunswick 15%, Newfoundland and Labrador 15%, Prince Edward Island 15%. Non-HST provinces (charge only 5% GST): British Columbia (adds 7% PST separately), Alberta (no provincial sales tax), Saskatchewan (adds 6% PST), Manitoba (adds 7% RST), Quebec (adds 9.975% QST). For cross-border sellers, the applicable rate depends on where the customer receives the supply — for digital services, this is the customer's home address.

Non-resident sellers register through the CRA's online portal or by mail using Form RC1. You need: (1) a Canadian business number (BN) — CRA issues this upon registration; (2) details of your business activities in Canada; (3) estimated annual Canadian revenue. Under the simplified regime (for sellers of low-value goods ≤C$40 and digital services), you can register without a BN and use a streamlined form. You must file GST/HST returns — annual if revenue is under C$1.5 million, quarterly if above. Returns are filed electronically through CRA's My Business Account or NETFILE.

Yes. Once registered for GST/HST, non-resident sellers can claim input tax credits (ITCs) for the GST/HST paid on business expenses incurred in Canada — such as fulfilment fees, shipping costs, customs brokerage, warehousing, and professional services. ITCs offset the GST/HST you collect from Canadian customers. To claim ITCs, you must hold valid documentation (receipts or invoices) showing the GST/HST paid. Keep all supporting documents for at least six years. If your ITCs exceed your GST/HST collected in a reporting period, you will receive a refund from the CRA.

If you are required to register for GST/HST but fail to do so, the CRA can assess you for the net tax (GST/HST collected minus ITCs) for all periods you should have been registered. Penalties include: (1) late filing penalty — 1% of the net tax owing for the first failure, plus 25% of that amount for each full month the return is late (maximum 10 months); (2) if the CRA issues a demand to file, the penalty increases to 5% plus 1% per month; (3) gross negligence penalty — 25% of the net tax owing if the failure is made knowingly or under gross negligence. Interest compounds daily on overdue amounts at the CRA's prescribed rate (currently approximately 11% per annum). Voluntary disclosure through the CRA's Voluntary Disclosures Program can reduce or waive penalties.