Does my US business need to collect Canadian GST/HST/PST?
Once Canadian sales exceed CAD $30,000, you must register with the CRA for GST/HST and collect at rates ranging from 5% to 15% depending on province. BC, Saskatchewan, Manitoba, and Quebec require separate provincial registrations on top of the federal layer, making Canada more complex than it first appears.
Canada’s tax system has federal and provincial components that operate separately. A US seller crossing the CAD $30,000 threshold needs federal GST/HST registration, and may need separate provincial registrations on top.
The federal layer: GST/HST
Registration threshold: CAD $30,000 in taxable supplies to Canadian customers in any 12-month rolling period.
Tax rate by province:
| Province | Tax type | Rate |
|---|---|---|
| Alberta | GST only | 5% |
| British Columbia | GST + PST | 5% + 7% = 12% (collected separately) |
| Saskatchewan | GST + PST | 5% + 6% = 11% (collected separately) |
| Manitoba | GST + PST | 5% + 7% = 12% (collected separately) |
| Ontario | HST | 13% (single harmonized tax) |
| Quebec | GST + QST | 5% + 9.975% = 14.975% (collected separately) |
| Nova Scotia | HST | 15% |
| New Brunswick | HST | 15% |
| PEI | HST | 15% |
| Newfoundland & Labrador | HST | 15% |
| Northwest Territories | GST only | 5% |
| Nunavut | GST only | 5% |
| Yukon | GST only | 5% |
Registration: Through the Canada Revenue Agency (CRA). US businesses without a Canadian presence register as a non-resident. CRA assigns a Business Number (BN) and GST/HST account.
The provincial layer: PST and QST
For provinces that don’t use HST, sellers may need separate provincial registrations:
British Columbia: BC has economic nexus thresholds for PST collection from out-of-province sellers. US sellers with significant BC sales may need to register for BC PST separately from GST.
Saskatchewan: Out-of-province sellers with Saskatchewan customers may need to register for Saskatchewan PST.
Manitoba: Manitoba’s RST (Retail Sales Tax) has registration requirements for out-of-province sellers above certain thresholds.
Quebec (QST): Revenu Québec administers QST separately from CRA. US sellers above the CAD $30,000 threshold must also register for QST with Revenu Québec.
What US sellers typically need to do
- Track Canadian sales to identify when the CAD $30,000 threshold is approaching
- Register with CRA for GST/HST before the threshold is crossed
- Confirm whether BC, Saskatchewan, Manitoba, or Quebec PST/QST obligations apply based on sales volume to those provinces
- Collect the correct rate based on the customer’s province of residence
- File GST/HST returns quarterly (most common for new registrants)
Frequently asked questions
Does my US ecommerce store need to collect Canadian GST/HST?
What is the difference between GST, HST, and PST in Canada?
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