Re: Do we need to register in every province for Canadian sales tax?

Do we need to register in every province for Canadian sales tax?

llinghuregroup
Visitor
1 0 0

Hello,

we are a Canadian company. If we sell products across Canada through Shopify, do we have to register in every province for provincial sale tax?

 

Replies 5 (5)

Skye
Shopify Staff (Retired)
1146 99 212

Hi, @llinghuregroup 

Skye here from the Shopify Community team. Thanks for posting!

When it comes to sales tax in Canada, it's important to understand the rules and regulations for each province. While I'm not a tax expert, I can provide some general information.

In Canada, businesses are generally required to register and collect sales tax in the provinces where they have a significant presence or meet certain sales thresholds. This means that if you sell products across Canada, you may need to register for provincial sales tax in each province where you have customers.

To ensure compliance, I recommend consulting with a tax professional or reaching out to the appropriate provincial tax authorities for specific guidance. They will be able to provide you with accurate information based on your business's circumstances.

 

Let me know if there's anything else I can assist you with!

Skye | Social Care @ Shopify
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Up4S
Visitor
2 0 0

I too am a Canadian Spotify customer, according to Intuit (the tax software company), claims you must charge taxes to the province you are selling to.  Here's a sample list, follow the link below to Intuit, that I found.  Hope this helps.

 

Alberta

5% GST

British Columbia

5% GST and 7% PST

Québec

5% GST and 9.975% QST

Manitob

5% GST and 7% Retail Sales Tax

New Brunswick

15% HST

Newfoundland & Labrador

15% HST

Northwest Territories

5% GST

 

https://turbotax.intuit.ca/tips/what-every-e-commerce-business-in-canada-should-know-about-paying-ta...

Skye
Shopify Staff (Retired)
1146 99 212

Hi, @Up4S 

 

Thanks for joining the conversation!

It is important to note however, that you are only required to charge sales tax if your business earns more than $30,000 a year. This is also stated in the article. 

Skye | Social Care @ Shopify
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liz_vubiz
Visitor
1 0 0

Hi, Yes, you have to charge tax by region. I'm working on migrating to Shopify and configuring Canadian tax. Do we have to set up each region in Shopify if we are only registered in one? We collect taxes in all regions but are only registered in Ontario. That's how we are set up in the system we are switching from. I can't find a clear answer to this. Thanks!

Kristina1907
Tourist
9 0 1

A great explanation you can find here https://vatcompliance.co/countries/canada-guide/

They also help with the ST registration, filings. I'm using Lovat software for my vat returns in Canada. Great service.