How do I handle sales and import taxes for Canadian orders from California?

Accounting & Taxes
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Topic summary

Seller enabled Canada (and Australia) and noticed no sales or import taxes were charged at Canadian checkout; they’re concerned before accepting a large Canadian order.

Platform support cannot provide tax advice but shares general guidance and official resources. Key point: non‑Canadian stores generally must register for GST/HST (Goods and Services Tax/Harmonized Sales Tax) only if both apply:

  • You sell taxable goods/services to Canadian customers and fulfill from a warehouse in Canada.
  • Your taxable Canadian revenue exceeds CAD 30,000 over the past 12 months.

For international shipments, duties/import taxes may apply. These can be:

  • Paid by the buyer upon delivery, or
  • Prepaid and collected at checkout (merchant chooses the method; configuration resources provided).

No definitive resolution for the seller’s specific situation. Suggested next steps:

  • Consult a tax professional to confirm GST/HST registration obligations based on revenue and fulfillment location.
  • Review the provided Canadian tax guides and references.
  • Decide whether to collect duties/import taxes at checkout or have the carrier collect on delivery.

Discussion remains informational/ongoing; no formal decisions made.

Summarized with AI on January 24. AI used: gpt-5.
1

Hey guys! I have added Canada as a region on my shop same with Australia but my cousin in Canada put an order and at checkout it didn’t charge her a sales tax or import tax and I’m worried I feel like there’s more to it than just shipping fee? I just had someone contact me from Canada and wants to make a big sale I don’t wanna pass on it anyone from California selling to Canada please let me know what I need to do thank you

2

Hi, @Bronzebynaz !

Thanks for your post. I’m unable to provide tax advice, so if you’re unsure about whether you need to collect taxes in Canada, I recommend contacting a tax expert. However, I’d be happy to share some resources with general information about selling and collecting taxes in Canada!

I recommend checking out our Canadian tax guide which has a lot of great context about selling in Canada. This section is particularly helpful for determining if you are required to collect taxes:

If your store is not based in Canada, then generally you need to register for a GST/HST account if both of the following are true:

  • You sell taxable products or services to customers in Canada, and fulfill those orders from a warehouse located in Canada.
  • Your revenue from taxable sales in Canada is more than 30,000 CAD over the past twelve months.

You can also check out our Canadian tax reference which provides further detail on what the different taxes are in Canada and how they could apply to your store.

If you ship an order to Canada (or any international country), there may be duties/import taxes due on that order. This can either be paid by the buyer when they they receive the package, or they can be pre-paid at checkout. You decide which method works best for your store. I recommend checking out these resources to learn more:

I hope this helps! Please let me know if you have any other questions.