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?
Topic summary
A Canadian business owner asks whether they need to register for sales tax in every province when selling across Canada through Shopify.
Key Points:
- Registration requirements: Businesses generally must register and collect sales tax in provinces where they have significant presence or meet certain sales thresholds (typically $30,000+ in annual revenue)
- Provincial tax rates vary: Examples include Alberta (5% GST only), British Columbia (5% GST + 7% PST), Quebec (5% GST + 9.975% QST), and some provinces use HST (15%)
- Tax collection vs. registration: One participant notes their business is only registered in Ontario but collects taxes for all regions
Unresolved Question:
A user migrating to Shopify asks whether they need to set up each region separately in the platform if only registered in one province (Ontario), despite collecting taxes for all regions. This specific technical configuration question remains unanswered.
Recommendations provided: Consult a tax professional or provincial tax authorities for business-specific guidance to ensure compliance.
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!
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 |
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.
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.
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!