Canada PST/GST/HST Overview for Cross-Border Sellers
Updated 2026-08-17
Canada has a multi-layered sales tax system: federal GST (5%), provincial PST (varies 0-10%), combined HST (13-15% in some provinces), and Quebec QST (9.975%). Non-resident digital economy sellers must register for GST/HST when making CAD 30,000+ in taxable supplies to Canadian consumers over 12 months.
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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
What is the difference between GST, HST, and PST?+
GST (5%) is the federal tax. PST is a separate provincial tax. HST combines GST and provincial tax into one rate. Some provinces have GST + PST (two separate taxes), others have HST (one combined tax), and Alberta has only GST.
When must non-resident sellers register?+
Non-resident sellers making taxable supplies to Canadian consumers must register for GST/HST when their taxable supplies exceed CAD 30,000 over four consecutive quarters. Digital economy businesses have specific registration rules effective since July 2021.
Do I need to register for provincial PST separately?+
Yes, in provinces with separate PST (BC, SK, MB, QC), you may need separate provincial registration. BC, SK, and MB require non-resident sellers meeting thresholds to register for PST. Quebec requires QST registration for non-resident digital economy suppliers.
How do I handle GST/HST when selling through Amazon FBA in Canada?+
Amazon collects and remits GST/HST on marketplace sales made through its Canadian platform. However, if you have nexus in Canada (e.g., FBA inventory in Canadian warehouses), you must still register for a GST/HST account with the CRA. You report marketplace sales as zero-rated supplies on your return since Amazon already collected the tax. You can claim input tax credits for GST/HST paid on business expenses like shipping, software, and professional fees.
What are the consequences of not collecting the correct provincial sales tax?+
If you fail to collect and remit the correct PST/RST in provinces where you have obligations, the provincial tax authority can assess you for the uncollected tax plus interest and penalties. In most provinces, penalties range from 10% to 50% of the unpaid tax, plus daily interest (typically prime rate + 4%). Unlike GST/HST which is federal, PST enforcement varies by province. Some provinces (BC, Saskatchewan, Manitoba) are particularly active in auditing cross-border sellers.
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