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When do I have to register for GST/HST in Canada?

Updated


Whether you need to register for GST usually depends on what sales channel you use (marketplaces or your own online store). However, if you’re selling non-exempt books or newspapers from outside Canada, you have to register. 

Marketplace sellers

In Canadian tax law, online marketplaces like Amazon and eBay are called “Digital Platform Operators” (DPO). They’re responsible for collecting GST and HST on sales made by non-resident, non-registered sellers.  

If you only sell on a marketplace, then you don’t need to register for GST. However, if you do register – for any reason – the responsibility for collecting and remitting GST/HST on your marketplace sales moves to you. 

Selling from your online store 

If you’re not storing any goods in Canada, you don’t need to register for GST/HST.  

Storing goods in Canada means you need to decide if you’re “carrying on business in Canada”. This can be quite tricky. There’s no single definition or test you can take to decide whether you are or not. The best advice we can give you here is to read GST/HST Policy Statement P-051R2. The Policy Statement is long, but it’s mostly examples, many of which won’t apply to you as an ecommerce seller. 

If you’re not carrying on business in Canada, you don’t need to register for GST until you’ve crossed the Digital Economy Threshold. If you are, you won’t need to register until you’ve crossed the Small Supplier Threshold. 

Small Supplier Threshold 

You’ll need to register for GST/HST if: 

  • You’re carrying on business in Canada
  • You’re selling goods stored in Canada to Canadians (but not through Marketplace fulfilment, like Amazon FBA)
  • You passed 30,000 CAD in worldwide sales over the last four calendar quarters 

      Digital Economy Threshold 

      You’ll need to register for GST/HST once you pass 30,000 CAD in sales, if: 

      • You’re not carrying on business in Canada
      • You’re not a resident of Canada
      • You sell digital products or services to Canadians
      • You sell goods stored in Canada to Canadians (but not through Marketplace fulfilment, like Amazon FBA) 

            Sales made on online marketplaces don’t count towards the threshold. 

            Even if you don’t have to register, you might want to anyway. You can: 

            • Reclaim import GST
            • Get the GST on returns refunded
            • Skip the confusion about “carrying on business in Canada” 

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