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Online store sales tax in Canada starts when your taxable sales pass $30,000 over four calendar quarters, or in any single quarter. Up to that, you’re a small supplier and don’t have to register for GST/HST. Past it, you charge tax on the sale that tipped you over. Platforms like Shopify can calculate the tax at checkout, but the registration and the filing are still yours, and we haven’t verified what any platform’s tools do.
When does an online store have to register?
The CRA counts revenue from all your taxable sales worldwide, across every business you own. The store is one piece. Two ways to cross the line matter.
First, one quarter above $30,000. Then your registration can’t start later than the day of the sale that took you over, and you charge tax on that sale. So if a single big order lands you at $31,000 for the quarter, that order carries tax.
Second, four quarters in a row adding to more than $30,000, with no single quarter above it. You stop being a small supplier at the end of the month after that quarter, and the CRA expects you to register within 29 days of that. Keep a running total. Waiting for the year end is how sellers miss it.
You can also register before the limit. The CRA allows voluntary registration if you make taxable sales in Canada. It can make sense if you spend a lot on inputs with tax, since a registrant can claim input tax credits. That’s a decision for your own numbers, and we don’t model it here.
What does the slow-creep case look like?
Jordan runs a small online shop selling candles from Halifax. Sales by quarter are $12,000, $9,000, $8,000 and $7,000. No single quarter comes near $30,000, and after three quarters the total is $29,000, still under. The fourth quarter pushes the four-quarter total to $36,000. That’s the case where the CRA expects you to register within 29 days after the end of the month following the quarter, so a calendar check once a quarter is worth the five minutes.
Notice that nothing dramatic happened. No big order, no viral week. Jordan just kept selling, which is why a running total beats a gut feeling.
Which rate do you charge?
The rate follows the place of supply, which is where the sale is made. The CRA’s example is a mattress sold by a store in Vancouver and delivered to Toronto. The seller charges Ontario’s 13% HST. So your customer’s delivery province sets the rate. Yours doesn’t.
| Delivery province | Tax on a $100 order | Total |
|---|---|---|
| Ontario (13% HST) | $13.00 | $113.00 |
| Alberta (5% GST) | $5.00 | $105.00 |
| British Columbia (5% GST + 7% PST) | $12.00 | $112.00 |
| Nova Scotia (14% HST) | $14.00 | $114.00 |
Those come from our engine, and they assume a plain taxable good. The GST/HST calculator does the maths for any province, and the GST and PST calculator covers provinces where the two taxes are separate. Our BC figure works for goods, but the tool taxes everything at 12% there, so it overstates tax on items like restaurant food. That doesn’t affect a normal product sale.
We left Quebec and Manitoba out of the table. Quebec’s QST is 9.975% and Manitoba’s retail sales tax is 7%. Check both before you sell there.
A worked example with real money
Say your store sells to Ontario customers and reaches $35,000 in a calendar quarter. Tax on that revenue is $4,550, and you’d collect $39,550 in total from buyers. The HST reverse calculator does the opposite job: give it a price that already includes tax and it strips the tax back out. That’s handy when a supplier’s invoice shows only a total.
Notice what this does to margins. If you priced at $100 and forgot tax was on top, you’d have $13 to find from your own pocket on every sale. Check your prices with the profit margin calculator using the pre-tax figure only.
What about PST and marketplaces?
PST is a provincial tax, and the rules for registering and collecting it come from each province. The CRA doesn’t run it. We haven’t verified them for online stores, so check the provincial site for BC, Saskatchewan and Manitoba before you ship there.
Marketplaces matter for one group. The CRA says non-resident sellers who sell qualifying goods through a registered distribution platform operator don’t have to register for GST/HST themselves, because the operator collects it. That rule is written for non-residents. If you’re a Canadian seller, don’t assume it covers you.
Mistakes and limits
Counting only store sales is the classic one, and it can hurt. Your consulting income counts toward the $30,000 too. Another is charging your own province’s rate on every order. And some sellers wait to see whether they’ll “stay small” this quarter, when the CRA rule says the tax is due on the sale that crosses the line.
We don’t confirm platform features, apps or fees, and this page doesn’t compare them. Ask your platform what it calculates and what it leaves to you, and keep the answer in writing.
What should you do this week?
Add up your taxable sales for the last four quarters, and for the current one on its own. If you’re close to $30,000, open the CRA’s registration page and read it before the day you cross, not after. Write down which provinces your orders go to, since each has its own rate, and check that your store settings charge tax only once you’re registered. A few bucks of tax collected before you have a number isn’t yours to keep.
Where this information comes from
The $30,000 test, the registration timing and the place of supply rule come from the CRA pages on when to register and which rate to charge. The non-resident marketplace rule comes from the CRA’s digital economy page. Provincial rates are from our 2026 sales tax data, read against the CRA rate table in late September 2026. This is an independent guide, separate from any government body.
Frequently asked questions
When must an online store register for GST/HST?
When taxable revenue passes $30,000 in a single quarter or over four calendar quarters. You charge tax on the sale that crosses the line.
Which province's rate do I charge?
The rate follows the place of supply. For goods you deliver, that is normally the destination province, as in the CRA's mattress example.
Can I register before I reach $30,000?
Yes. The CRA allows voluntary registration if you make taxable sales in Canada.
Is PST handled by the CRA?
No. PST is provincial. We haven't verified the rules for online stores, so check the province's own site.
Do marketplace sellers skip registration?
The CRA says non-resident sellers using a registered distribution platform operator need not register. The rule is written for non-residents.
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