If you run an online business in Canada, sales tax is one of those things that feels fine to ignore — right up until it isn't. You cross a revenue line you didn't know existed, or a customer asks for your GST number, and suddenly you're not sure whether you should have been charging tax this whole time.
Here's the short version: once your business earns more than $30,000 in taxable revenue, you have to register for GST/HST and start charging it. Below that, it's your choice. This guide walks you through who needs to charge it, how much to charge, and how to actually put it on an invoice — in plain English, from a Canadian bookkeeping team that does this every day.
Do you actually need to charge GST/HST? The $30,000 rule
You must register for GST/HST once your worldwide taxable revenue passes $30,000 — either in a single calendar quarter, or added up across the last four consecutive quarters. "Worldwide" matters: it includes your U.S. and international sales, not just what you earn from Canadian customers.
So if you bring in $12,000 from Canadian clients and $20,000 from customers abroad, you're at $32,000 — over the line, and you need to register.
The moment you cross $30,000 in a single quarter, you stop being a "small supplier" that day. You have to register within 29 days, and you charge GST/HST starting on your effective registration date — including on the very sale that pushed you over.
Under $30,000? You're a small supplier and charging GST/HST is optional. Plenty of businesses register voluntarily anyway — we cover why that can be worth it further down.
GST/HST rates by province (2026)
| Province / Territory | GST | HST | PST / Provincial |
|---|---|---|---|
| Alberta | 5% | — | — |
| British Columbia | 5% | — | 7% PST |
| Manitoba | 5% | — | 7% RST |
| New Brunswick | — | 15% | — |
| Newfoundland and Labrador | — | 15% | — |
| Northwest Territories | 5% | — | — |
| Nova Scotia | — | 14% | — |
| Nunavut | 5% | — | — |
| Ontario | — | 13% | — |
| Prince Edward Island | — | 15% | — |
| Quebec | 5% | — | 9.975% QST |
| Saskatchewan | 5% | — | 6% PST |
| Yukon | 5% | — | — |
Provinces with HST charge one combined rate. The rest charge 5% GST plus their own provincial tax (PST, RST or QST), which is a separate registration with its own rules. Rates current as of August 2026 — always confirm on the CRA site before a big filing.
Rates change — Nova Scotia dropped from 15% to 14% on April 1, 2025, for example. Always confirm the current rate on the CRA site before a big filing: Charge and collect the GST/HST (canada.ca).
Which province's rate do you charge? (Place-of-supply, made simple)
This is the part that trips up almost every online seller. The rate you charge usually depends on where your customer is, not where you are.
If you're based in Alberta and sell a product to a customer in Ontario, you charge 13% HST — Ontario's rate — even though Alberta itself only has 5% GST. Sell that same product to someone in Alberta, and you charge 5%.
- Physical products: generally the rate of the province you ship to.
- Digital products and most online services: generally the rate of the province your customer lives in.
The practical takeaway: your invoicing or e-commerce system needs to know your customer's province and apply the right rate automatically. Doing it by hand across the country is where mistakes creep in.
How to register for a GST/HST number
Registering is free and faster than people expect. You have three options:
- Business Registration Online — the quickest route for most people.
- Complete Form RC1, Request for a Business Number.
- Call the CRA at 1-800-959-5525 (have the RC1 details ready).
What you'll need on hand
- Personal info: legal name, social insurance number, date of birth, postal code.
- Business info: name, address, business type, and the SINs of all owners.
You'll come out with a 9-digit business number and a GST/HST program account. That's the number that goes on your invoices.
How to charge GST/HST on your invoices
Once you're registered, every invoice needs to make the tax clear. Your customers — and the CRA — should be able to see exactly what was charged.
- Show your GST/HST number (the 9-digit one) on the invoice.
- Show the rate you applied (e.g., 13% HST).
- State whether tax is included or added — spell out whether the price already includes GST/HST or whether it's added on top.
For any sale of $30 or more, the CRA expects your business name, the date, and either the tax amount or a clear statement that tax is included. Most invoicing software handles this for you once your number and rates are set up — you just have to switch it on.
Selling to U.S. and international customers
Good news for online businesses with customers abroad: most exports are zero-rated. That means you charge 0% GST/HST on those sales — but you still report them, and you can still claim back the GST/HST you paid on related expenses.
The catch is your bookkeeping. Foreign sales usually come in U.S. dollars, and you have to convert them to Canadian dollars for your return. Doing that consistently — same source, same method — saves a real headache at filing time.
⚠️ The mix-up we correct most often: it's the customer's location, not the currency
Billing in US dollars does not make a sale "foreign." If your customer is in Canada, you charge GST/HST at their province's rate — even when you invoice and get paid in USD. The currency is irrelevant; what matters is where your customer is. A Canadian client who pays you in US dollars is still a Canadian sale, and GST/HST applies. A sale is only zero-rated when the customer is outside Canada — not because of the currency on the invoice.
Claiming it back: input tax credits
Charging GST/HST isn't only money you collect and hand over. Once you're registered, you can claim input tax credits (ITCs) — the GST/HST you paid on business expenses like software, supplies, and equipment. You subtract those credits from the tax you collected, and only remit the difference.
This is the quiet upside of registering, and it's why some businesses register voluntarily before they hit $30,000: if you're spending on your business, you may be paying GST/HST you could be getting back. The trade-off is you also have to start charging your customers and filing returns, so it's worth a quick conversation before you decide.
Of course, you can only claim credits on the expenses you actually capture — and most online businesses are missing some. Here are the business expenses people most often miss, and how to track them so nothing slips.
Tracking GST/HST without losing your mind
You cannot file an accurate return from memory. You need a system that records, on every sale, how much GST/HST you collected — and on every expense, how much you paid.
You don't need fancy software to start. When you're small, a simple tracking spreadsheet is plenty — one row per sale, with columns for the date, the customer's province, the amount, the GST/HST you collected, and the tax you paid on expenses. These days you can even have an AI tool like ChatGPT or Claude build that sheet for you in a couple of minutes: just ask it for "a GST/HST tracking spreadsheet for a Canadian online business" and tell it those columns.
If you'd rather not build it yourself, we sell a ready-made GST/HST tracking spreadsheet — set up the way a bookkeeper would, so you just fill it in: get our done-for-you tracking spreadsheet. As you grow past what a spreadsheet can handle, accounting software pays for itself in saved time and fewer errors, and we can help you pick the right one when you get there.
Tracking as you go also makes year-end far cheaper and calmer. Our Business Tax Expense Guide walks through what to capture along the way.
Common mistakes we see online businesses make
- Forgetting foreign sales count toward the $30,000. It's worldwide revenue, not just Canadian.
- Charging their own province's rate to everyone. It's usually the customer's province that decides the rate.
- Registering late. You owe the tax from your effective date whether or not you collected it — so late registration can mean paying it out of pocket.
- Never claiming input tax credits. That's money left on the table.
- No tracking system. Reconstructing a year of sales tax in April is the most expensive way to do this.
Not sure if you're charging GST/HST right? Let's check.
At KC & Company, we make GST/HST manageable for online entrepreneurs — from figuring out whether you need to register, to setting up your invoicing and tracking so it runs quietly in the background. Whether you have one quick question or want someone to just handle it, get in touch and we'll help you sort it out. We'd genuinely love to help.
Or have a bookkeeper check the whole file
If you've read this far, you're probably doing most of it right and second-guessing the rest. That's a normal place to be — and it's exactly what The Books Check-Up is for. A one-time professional review of your books by a trained bookkeeper: what's set up correctly, what needs attention, and what to do about it. You get a recorded video walkthrough and a written summary, no judgment attached.
Take a look at The Books Check-Up → · from $147 + GST
Frequently asked questions
Who needs to charge GST/HST in Canada?
Any business whose worldwide taxable revenue is more than $30,000 over four consecutive calendar quarters. Below that you're a "small supplier" and charging is optional.
When do I have to register for GST/HST?
The day you pass $30,000 in a single quarter, or once you exceed it over the last four quarters. Register within 29 days and charge GST/HST from your effective registration date.
How much GST/HST do I charge?
It depends on your customer's province: 5% GST in Alberta and the territories, 13% in Ontario, 14% in Nova Scotia, and 15% in New Brunswick, Newfoundland and Labrador, and PEI. BC, Saskatchewan, Manitoba and Quebec add a separate provincial tax on top of 5% GST.
Do I charge tax based on where I am or where my customer is?
Generally where your customer is. For most goods and digital services sold online, you charge the rate of the customer's province, not your own.
Do I charge GST/HST to U.S. or international customers?
Usually no — most exports are zero-rated. You charge 0%, still report the sale, and can still claim input tax credits on related expenses.
How do I show GST/HST on an invoice?
Show your 9-digit GST/HST number, the rate applied, and whether tax is included or added. For sales of $30 or more the CRA also wants your business name, the date, and the tax amount.
