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Record every multi-currency sale in Canadian dollars, using the Bank of Canada rate for the day the amount arises. That’s the CRA’s default rule for income tax, and it covers sales you make in US dollars, euros or anything else. The CRA will accept other sources and averages in some cases, but only if you can meet its conditions and stick to one method.
Most online stores get this wrong in one of two ways. They let the payment platform convert everything and record whatever lands in the bank, or they grab a random rate from a search result. Neither leaves a trail you can defend.
Which exchange rate should you use?
For income tax, the CRA’s folio on reporting currency says amounts must be converted to Canadian dollars at the spot rate for the day they arise.
In general, these provisions require that this conversion be made using the relevant spot rate for the day on which the relevant amount arises.
Income Tax Folio S5-F4-C1, Income Tax Reporting Currency, canada.ca
For days after 28 February 2017, that rate is the one the Bank of Canada quotes that day. If it doesn’t quote one (a weekend, say), you take the closest earlier day.
The folio also allows other rates if all seven of its conditions are met. The rate must be widely available and verifiable, published by an independent provider on an ongoing basis, recognized by the market, used under well-accepted business principles, used in your financial statements if you have any, and used consistently from year to year. Bloomberg, Thomson Reuters and OANDA are the providers it names as generally accepted.
And averages? The CRA may accept an average over a period for some items, but not if rates swing a lot. So a monthly average might pass in a calm year and fail in a wild one. I’d keep daily rates if you can, and check that your accounting tool stores them.
| Situation | Rate the CRA describes |
|---|---|
| Income tax, default | Bank of Canada rate on the day the amount arises |
| Income tax, alternative | Another source that meets all seven conditions, used every year |
| Income tax, averages | Possible for some items, not if rates fluctuate significantly |
| GST/HST on a foreign-currency price | Rate on payment day, rate on the day the currency was acquired, or the monthly average for the month tax is payable |
How do you record a US dollar sale?
Take a US$1,000 order. Suppose the day’s rate is 1.3500 (an illustration, not a real quote). You record C$1,350 of revenue. If the platform pays out a week later and the rate has moved to 1.3800, the payout is worth C$1,380. That extra $30 is a foreign exchange gain. It doesn’t change the sale, and it belongs on its own line in your books.
Flip the move and you have a loss. Either way, the sale stays at the first rate. The difference shows how the currency moved between the sale and the money arriving.
For the tax part, the GST/HST calculator shows what 13% or 5% adds to a Canadian-dollar price, and the reverse HST calculator pulls tax back out of a total.
What does the GST/HST rule say about foreign currency?
The CRA’s memorandum on converting foreign currency gives three ways to work out the Canadian-dollar value of what a customer paid: the rate on the day the consideration was paid, the rate on the day the currency was acquired, or the monthly average for the month the tax became payable. You’re told to use your chosen method consistently for a reasonable period, such as a year.
One detail is easy to miss. The memo says a database service that only tracks Bank of Canada rates isn’t an acceptable source, because it doesn’t reflect the actual rates in your transactions. So pick a real method and write it down.
This page can’t say whether you must register at all. Small suppliers have a limit, and I haven’t covered it in full here, so read the CRA’s page on when to register for and start charging the GST/HST before you charge tax or skip it.
What if the platform converts the money for you?
Many do, and many bake a margin into the rate. Say that same US$1,000 sale should be C$1,350 at the day’s rate, but the platform’s own rate leaves C$1,332 in your account. The $18 gap isn’t a smaller sale. It’s a cost of getting paid.
So record the sale at C$1,350, the $18 as a fee or conversion loss, and the deposit at C$1,332. Your books still tie to the bank, and your revenue isn’t quietly understated. A statement that shows the original US dollar amount, the rate applied and the Canadian result makes this job a lot easier. Ask for one.
How often should you check your method?
Once a year is plenty, ideally when you close the books. Look at which rate source you used, whether any month broke the pattern, and whether a new platform or sales channel crept in with its own currency. Changing method is allowed in principle, but do it at the start of a year, write down why, and don’t flip back and forth to chase a nicer number.
What goes wrong with multi-currency books?
Mixing methods is the classic. You use daily rates in March, a monthly average in April and whatever the platform says in May. Each choice is defensible by itself, but together they’re a mess that no reviewer can follow.
Fees are the next trap, as above. Don’t shrink the revenue to match the bank.
Keep a screenshot or export of each rate you used, and the date. If your margin depends on the spread, run your numbers through the profit margin calculator before you price in a second currency. A couple of cents on the dollar can eat a thin margin faster than a price cut does, and when the loonie jumps 3 or 4 cents in a month, the same US price brings in noticeably fewer Canadian dollars.
What this page is based on
Income tax rules: CRA Income Tax Folio S5-F4-C1, Income Tax Reporting Currency. GST/HST methods: CRA GST/HST Memorandum 3-6, Conversion of Foreign Currency. I read both in 2026. The 1.3500 and 1.3800 rates, and the $18 platform gap, are made up for the examples. I didn’t confirm how each accounting app pulls its rates, so check yours. This site is independent of the CRA and of any platform.
Frequently asked questions
What rate does the CRA want for foreign sales?
For income tax, the Bank of Canada rate on the day the amount arises. Other sources are accepted only if they meet the CRA's listed conditions.
Can I use a monthly average rate?
The CRA may accept averages for some items, but not when rates fluctuate significantly. For GST/HST it lists a monthly average as one allowed method.
What if the platform pays out at a different rate?
Book the sale at the rate for the sale day. The difference when the money lands is an exchange gain or loss, kept on its own line.
Can I switch methods each month?
The CRA asks you to use your chosen GST/HST method consistently for a reasonable period, such as a year. Income tax alternatives also have to be used consistently.
Does the Bank of Canada publish daily rates?
Yes, it quotes rates on business days. When there is no rate for a day, the CRA folio says to use the closest earlier day that has one.
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