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Canadian eCommerce Sales Tax Rules





The rules outlined by CRA provide that all Canadian retailers making sales in Canada, either through a physical “bricks and mortar” location or online, are required to be registered for GST/HST unless they are considered a small retailer (which is a business with sales of less than $30,000 annually).

In addition, a retailer (that is not a small retailer) with only one physical location in Canada that sells across Canada through their on-line store would be required to charge and collect GST/HST at the rate that applies to the province in which the taxable goods are delivered to. For example, a retailer with a physical location in Alberta that sells and delivers goods to an Ontario customer would be required to charge and collect GST/HST at the current rate in Ontario, not Alberta.

Sales Tax Nexus by State

A Canadian resident on-line retailer with no physical “bricks and mortar” location would also be required to charge GST/HST at the rate that applies to the province in which the taxable goods are delivered to. For example, let’s say a company incorporated in Ontario that does not have any physical stores, sells taxable sporting goods online via ecommerce. If the company arranges for the delivery of its product to a consumer in British Columbia, it is required to charge and collect GST/HST at the rate in British Columbia from the customer, even though the company was established in Ontario.