What Is Canadian Sales Tax?
A federal tax called the Goods and Services Tax (GST) applies to most goods sold or provided in Canada.
Some provinces combine this with a local tax to create the Harmonized Sales Tax (HST). These provinces include:
New Brunswick
Newfoundland and Labrador
Nova Scotia
Ontario
Prince Edward Island
Other provinces use a separate Provincial Sales Tax (PST). Quebec has its own system called Quebec Sales Tax (QST). Overall, sales tax rates in Canada generally range from 5% to 15%, depending on the destination province.
For order fulfillment in Canada, many online marketplaces like Etsy and Amazon will automatically handle the calculation, collection, and payment of these taxes on your behalf. Platforms like Shopify also provide tax tools to help sellers manage their Canadian sales tax obligations.
USMCA De Minimis Threshold
The USMCA trade agreement sets certain exemptions for low-value goods shipped from the United States into Canada:
Goods valued at CAD $40 or less are exempt from Canadian sales taxes (GST, HST, and PST).
Goods valued at CAD $150 or less are exempt from customs duties.
These de minimis thresholds apply to courier shipments for order fulfillment entering Canada from the U.S. This can affect the final cost for your Canadian customers.
Can You Recover Canadian Sales Tax Paid?
Yes. If your business is not located in Canada but you sell to Canadian customers, you may be able to recover the GST you pay.
To do this, you can register as a Non-Resident Importer (NRI) with the Canadian government. This registration allows you to potentially reclaim GST paid on eligible imports and reduce your overall tax obligation for order fulfillment to Canada.
We generally recommend considering NRI registration if you regularly ship orders into Canada and want to manage and recover your Canadian sales tax costs.
Important Disclaimer
Framico provides this information for general guidance only. We do not offer professional tax, legal, or accounting advice. The details regarding Canadian sales tax and import rules are for your awareness. They should not replace the advice of a qualified professional. You are responsible for consulting your own tax, legal, or accounting advisor to understand your specific obligations and ensure compliance.
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