Canada GST/HST/QST/PST for Foreign & Local Businesses — 2026 Guide

Introduction

The Canadian indirect tax framework is one of the most distinctive in the developed world — a federal Goods and Services Tax (GST) at 5% running parallel to, partially harmonized with, and in some provinces entirely independent of, a layer of provincial sales taxes. Five provinces (Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island) operate Harmonized Sales Tax (HST), in which the federal and provincial layers are combined into a single 13–15% rate administered centrally by the Canada Revenue Agency. Three provinces (British Columbia, Saskatchewan, Manitoba) operate separate Provincial Sales Tax (PST) regimes on top of the 5% federal GST. Quebec operates Quebec Sales Tax (QST) at 9.975%, administered by Revenue Québec which also handles federal GST collections in Quebec under a long-standing federal-provincial Memorandum of Understanding. The four GST-only territories and Alberta operate 5% federal GST with no provincial layer at all.

For a foreign vendor selling into the Canadian market — Australian, German, Indian, Chinese — the implication is that “registering for Canadian sales tax” is not a single act. It is a registration architecture that may include up to four separate filings depending on where the customers are: federal GST/HST through CRA (covering Ontario, the Maritimes, the four GST-only territories, and Alberta); QST through Revenu Québec; BC PST; Saskatchewan PST; Manitoba RST. The federal-provincial harmonisation framework determines which combinations apply for which transactions, and the harmonisation framework itself has been evolving — most recently with Nova Scotia’s reduction of HST from 15% to 14% on 1 April 2025, and with the comprehensive non-resident digital services regime that came into force on 1 July 2021.

This guide is the operator’s view of how Canadian indirect tax actually works in 2026. We cover where the federal 5% GST applies and how HST, QST, and PST layers stack on top; what foreign vendors need to do under the non-resident specified-supplier regime; how Canadian-resident businesses manage multi-province compliance; how the marketplace facilitator framework operates; and what changes are visible on the federal and provincial roadmaps. The worked example traces an Australian mining-equipment company through Stream A (eastern Canadian HST customers), Stream B (Quebec QST customers), and Stream C (BC PST customers) to illustrate how the multi-layer architecture plays out in practice.

What this guide covers

01  Snapshot — Canadian GST/HST/QST/PST at a glance

02  60-second self-check — does this guide apply to you?

03  Track 1 — Foreign vendor with Canadian physical presence or selling B2B goods/services

04  Track 2 — Foreign vendor selling B2C digital services or goods to Canadian consumers

05  Track 3 — The provincial layers — Quebec QST, BC PST, Saskatchewan PST, Manitoba RST

06  Track 4 — Local Canadian business — GST/HST/QST/PST from registration onward

07  Cross-track essentials — invoicing, input tax credits, marketplace facilitator rules

08  Common questions answered properly

09  Recent changes and the road ahead

10  Primary sources & official references

01 · Snapshot — Canadian GST/HST/QST/PST at a glance

Everything you need to orient before reading the persona tracks. Every figure here is restated and sourced inside the relevant track.

02 · 60-second self-check — does this guide apply to you?

Six questions. If any answer is yes, the corresponding track is mandatory reading before you transact.

03 · Track 1 — Foreign vendor with Canadian physical presence or selling B2B goods/services

You are established outside Canada and you either have physical presence in Canada (office, employees, contractors, inventory) or you sell B2B goods or services to Canadian businesses. The framework distinguishes the two.

3.1  B2B services — reverse charge / self-assessment

Place of supply for B2B services to a Canadian-resident GST/HST-registered customer is Canada (recipient’s establishment). The Canadian recipient self-assesses GST/HST at the appropriate provincial rate and recovers it through input tax credits where the input is used in commercial activity. The foreign supplier invoices without Canadian GST/HST, marks the invoice with appropriate self-assessment wording, and is not required to register for Canadian GST/HST for these supplies alone (unless other nexus triggers apply).

3.2  B2B goods — depends on importer of record

Goods imported into Canada attract GST (5%) at the border on the duty-paid value, payable by the importer of record. Provincial sales tax (HST, QST, PST) may also apply depending on the province of destination and the product category. Where the Canadian customer is importer of record (DAP terms), the foreign supplier ships without Canadian tax involvement. Where the foreign supplier is importer of record (DDP terms), Canadian GST/HST registration becomes mandatory.

3.3  Worked example — Sydney Mining Equipment Pty Ltd

Sydney Mining Equipment Pty Ltd is an Australian manufacturer of heavy-duty mining equipment — underground loaders, drilling rigs, mineral processing systems — sold to Canadian mining operators. Their Canadian customer base spans:

• Ontario gold-mining operators in the Timmins-Sudbury corridor (HST 13%, large B2B contracts averaging CAD 4.2M per machine).
• Quebec mining operators in the Abitibi-Témiscamingue region (GST 5% + QST 9.975% = 14.975% combined; average contract value CAD 3.8M per machine).
• British Columbia mining operators in the BC Interior (GST 5% + PST 7%; average contract value CAD 2.6M per smaller equipment).
• Saskatchewan potash operators in the Saskatoon area (GST 5% + PST 6%; average contract value CAD 5.1M per system).

Sydney Mining Equipment ships under DDP terms because Canadian mining operators in the regulated extractive sector expect comprehensive supplier responsibility through delivery and installation. The DDP terms make Sydney Mining the importer of record for every shipment. Their compliance architecture:

• Federal GST/HST registration through CRA covering all federal GST (5% Alberta), the HST portion in Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, PEI (covers all five HST provinces in one number), plus the 5% GST element in Quebec, BC, Saskatchewan, Manitoba.
• Separate QST registration through Revenu Québec for the QST portion (9.975%) of Quebec supplies.
• Separate BC PST registration through BC Ministry of Finance for the PST portion (7%) of BC supplies.
• Separate Saskatchewan PST registration through the Government of Saskatchewan for the PST portion (6%) of SK supplies.

Four separate registrations, four separate filing cycles, four separate sets of input tax credit recovery rules (with HST and GST being recoverable through CRA, QST recoverable through Revenu Québec, and PST/RST in BC/Saskatchewan being non-recoverable single-stage taxes that operate differently from VAT-style input/output mechanics).

3.4  Registration mechanics

CRA federal GST/HST registration is filed through the Business Registration Online (BRO) service. The application requires:

• Business Number (BN) — issued by CRA at first registration. Combined with the GST/HST program identifier RT0001.
• Description of business activity and projected Canadian sales by province.
• Bank account details for direct deposit refunds.
• Power of attorney for any Canadian tax representative.

Processing target is 30 days. Plan for 4–8 weeks from clean submission to GST/HST number issuance. Foreign-vendor first-refund verification adds time to the first quarterly cycle. Provincial registrations (QST, BC PST, Saskatchewan PST, Manitoba RST) are administered separately by the respective provincial authorities with their own timelines (typically 2–4 weeks each).

04 · Track 2 — Foreign vendor selling B2C digital services or goods to Canadian consumers

Effective 1 July 2021, Canada introduced a comprehensive non-resident specified-supplier regime for B2C digital services and short-term accommodation supplies. Goods supplies to Canadian consumers follow standard import/distance-selling mechanics.

4.1  The simplified GST/HST regime for non-resident digital services

From 1 July 2021, non-resident suppliers of “specified supplies” to Canadian consumers must register for and collect GST/HST when annual sales exceed CAD 30,000. Specified supplies include:

• Digital products and services — streaming, SaaS, downloads, online courses, mobile applications.
• Short-term accommodation through digital platforms (Airbnb, Booking.com, Vrbo).

The simplified regime allows:

• Registration through the CRA non-resident digital services portal.
• No requirement for a Canadian fiscal representative.
• Collection of GST/HST at the consumer’s province rate (5% Alberta/territories, 13% Ontario, 14% Nova Scotia post-April-2025, 15% NB/NL/PEI; QST and PST/RST handled separately under provincial regimes).
• Quarterly returns through the dedicated CRA non-resident portal.
• Payment in CAD or accepted foreign currencies.

The simplified regime is similar in design to the UK’s £135 rule, Norway’s VOEC, and the EU’s IOSS — all jurisdictions arriving at the same architectural pattern through parallel reform processes during 2018–2021.

4.2  Goods supplies to Canadian consumers

B2C goods supplies to Canadian consumers follow standard customs procedures. Imports above CAD 20 in declared value attract import GST (5%) at the Canadian border, plus provincial layer (HST in HST provinces; QST in Quebec; PST in BC/SK/MB at delivery). The de minimis exemption is CAD 20 — far lower than the U.S. $800 de minimis but in line with most other developed economies. Most cross-border B2C goods to Canada therefore attract import tax.

Foreign vendors with significant Canadian B2C goods volumes typically register for federal GST/HST directly and use DDP terms — equivalent to the architecture described in Track 1 Stream A — to provide a clean customer experience. The simplified non-resident regime described in 4.1 does NOT cover goods supplies (only digital services and accommodation); for goods, foreign vendors need full GST/HST registration through standard CRA processes.

05 · Track 3 — The provincial layers — Quebec QST, BC PST, Saskatchewan PST, Manitoba RST

The provincial sales taxes that operate alongside (or harmonised with) the federal GST are the source of most Canadian-tax complexity for foreign vendors. Brief operational profiles.

5.1  Quebec QST

QST (Taxe de vente du Québec / Quebec Sales Tax) is levied at 9.975% on top of the federal 5% GST in Quebec — combined effective rate 14.975%. QST is administered by Revenu Québec under the federal-provincial MOU; CRA does not handle QST. Distinctive features:

• QST applies the same place-of-supply rules as GST/HST for most B2B and B2C transactions.
• QST has its own non-resident specified-supplier regime since 1 September 2019 — predating the federal regime by almost two years.
• Quebec-resident customers expect French-language invoicing and may require Quebec-specific contractual language.
• Quebec is the only province with a comprehensive QST registry independent of CRA — non-residents register separately through Revenu Québec.

5.2  British Columbia PST

BC PST is levied at 7% on most retail sales of goods and a defined list of services. Distinctive features:

• BC PST is a single-stage retail sales tax — operates fundamentally differently from VAT/GST. There are no input tax credits; PST is a cost in the supply chain.
• BC PST applies to a narrower base than GST/HST — many services and intangibles taxable under GST/HST are not subject to BC PST.
• Software is generally subject to BC PST (one of the more notable taxability boundaries for software vendors).
• BC PST registration is required for foreign vendors with BC customers where the threshold (CAD 10,000 of BC sales annually) is met.

5.3  Saskatchewan PST

Saskatchewan PST is levied at 6% on most retail sales. Distinctive features:

• Single-stage retail tax structure similar to BC PST.
• Software is generally subject to Saskatchewan PST.
• Non-resident vendor registration is mandatory above the threshold — Saskatchewan applies an aggressive nexus rule that captures many out-of-province vendors.

5.4  Manitoba RST

Manitoba RST (Retail Sales Tax) is levied at 7% on most retail sales of tangible personal property and a defined list of services. Distinctive features:

• Single-stage retail tax similar to BC and Saskatchewan PST.
• Insurance premium tax overlaps with RST in specific scenarios.
• Manitoba registration is required where the foreign vendor exceeds the threshold of taxable Manitoba sales.

06 · Track 4 — Local Canadian business — GST/HST/QST/PST from registration onward

If you operate a Canadian-resident business — a federally-incorporated corporation, a provincially-incorporated entity, a partnership, a sole proprietorship — your indirect tax obligations begin with federal GST/HST and extend to provincial layers based on your customer locations and business presence.

6.1  The CAD 30,000 small supplier threshold

Canadian-resident businesses with annual worldwide taxable supplies below CAD 30,000 in any consecutive four-quarter period operate as small suppliers — not required to register, no GST/HST collected, no input tax credits available. Once turnover crosses CAD 30,000, registration is mandatory within 29 days. Voluntary registration below the threshold is available and commonly used by B2B-focused businesses for input tax credit benefit.

6.2  Filing cadence — annual, quarterly, monthly

CRA assigns filing cadence based on annual taxable supplies:

• Annual filing — taxable supplies below CAD 1.5 million.
• Quarterly filing — taxable supplies CAD 1.5 million to CAD 6 million.
• Monthly filing — taxable supplies above CAD 6 million.

Filing deadlines: 1 month after the end of monthly/quarterly periods; 3 months after fiscal year-end for annual filers. Voluntary election to file more frequently is available.

6.3  Input tax credits

GST/HST is recoverable as input tax credits (ITCs) on inputs used in commercial activity. Standard EU-style input/output mechanics apply for the federal GST and HST portions. QST in Quebec operates similarly with input tax refund (ITR) mechanics. BC PST, Saskatchewan PST, and Manitoba RST are non-recoverable single-stage retail taxes — they are costs in the supply chain, not VAT-style recoverable taxes. The recovery asymmetry between GST/HST/QST (recoverable) and PST/RST (non-recoverable) materially shapes commercial decisions about supply chain location and structure.

6.4  Public service body rebates

Charities, qualifying non-profit organisations, hospitals, schools, universities, municipalities, and certain other public service bodies are eligible for partial GST/HST rebates on GST/HST paid on inputs used in their exempt activities. Rebate percentages vary by entity type and province — typically 50% for charities, 67%–82% for hospitals depending on activity. The rebate mechanism is operationally important for the non-profit and public sectors in Canada and creates audit complexity around mixed taxable/exempt activity attribution.

07 · Cross-track essentials — invoicing, input tax credits, marketplace facilitator rules

7.1  Invoice content requirements

Canadian GST/HST invoices must contain — at minimum — the elements set out in the Excise Tax Act regulations:

• Supplier full name, address, and GST/HST registration number (Business Number with RT0001 program identifier).
• Customer name and address (for B2B above defined threshold).
• Invoice number from a continuous numerical series.
• Date of issue.
• Description, quantity, and unit price of goods or services.
• GST/HST rate applied (5%, 13%, 14%, or 15% depending on province), GST/HST amount, total invoice value.
• Currency in CAD (foreign currency permitted with CAD equivalent shown).
• QST line item separately if Quebec supply; PST/RST line item separately if BC/SK/MB supply.

7.2  Marketplace facilitator rules

Effective 1 July 2021, Canadian federal GST/HST marketplace rules make digital platforms responsible for collecting and remitting GST/HST on qualifying short-term accommodation supplies and on certain digital services supplied through the platform. Effective 1 July 2022 (further expanded since), the rules extended to platforms facilitating sales of goods stored in Canadian fulfilment warehouses by non-resident sellers.

Quebec QST applies parallel marketplace facilitator rules. BC PST applies marketplace facilitator rules from 1 April 2021 for online platforms facilitating sales of taxable goods/services to BC customers.

Major marketplaces operating in Canada (Amazon.ca, Walmart.ca, eBay.ca, Etsy Canada, Best Buy Marketplace, Indigo Marketplace) operate in-scope mechanisms for federal GST/HST, QST, and BC PST as applicable.

7.3  Currency and exchange rates

GST/HST returns must be filed in CAD. Foreign-currency invoices must be converted to CAD using either the Bank of Canada daily exchange rate or a consistent methodology applied by the business. CRA accepts both approaches provided they are documented and applied consistently.

08 · Common questions answered properly

Q. We’re a U.S. SaaS company selling to Canadian B2B customers. Do we need to register for GST/HST?

Probably not for the B2B SaaS supplies alone — B2B services to Canadian GST/HST-registered customers follow the recipient-location reverse-charge mechanism and the Canadian customer self-assesses. Where you might need to register: if you also have B2C Canadian customers above the CAD 30,000 threshold; if you have any Canadian physical presence (employee, contractor); if you hold any Canadian inventory. The simplified non-resident regime for digital services is specifically for B2C — B2B is handled through reverse charge.

Q. Our customer base is primarily Quebec. Do we register with CRA or Revenu Québec?

Both. CRA handles the 5% federal GST portion of Quebec supplies (Quebec is not an HST province — the 5% GST runs separately). Revenu Québec handles the 9.975% QST portion. Foreign vendors with Quebec customer concentration register with both agencies. Revenu Québec under the federal-provincial MOU actually administers GST in Quebec for some purposes, but registration is filed with CRA federally. The dual filing is administrative friction; budget for it.

Q. Nova Scotia just dropped HST from 15% to 14%. How do we handle supplies straddling 1 April 2025?

Place of supply tax-point determines the rate. Supplies with tax point on or before 31 March 2025 use 15% HST; supplies on or after 1 April 2025 use 14%. For multi-month contracts and subscription services straddling the change, the portion attributable to each period uses the rate in force during that period. CRA published transitional guidance in early 2025.

Q. We use Amazon.ca. Does Amazon handle all the Canadian sales tax?

For qualifying marketplace transactions, yes. Amazon collects and remits federal GST/HST, QST (where applicable), and BC PST under the respective marketplace facilitator rules. However: (a) Amazon Fulfilment-by-Amazon (FBA) inventory in Canadian warehouses creates underlying nexus for the seller in Canada that may trigger CRA registration requirements regardless of marketplace collection; (b) direct-channel sales (your own website, your own catalogue) remain your responsibility. Most active Amazon-FBA sellers register for federal GST/HST regardless, and reconcile against Amazon’s settlement reports monthly.

Q. BC PST is non-recoverable. Can we still claim some credit somewhere?

No, BC PST is structurally a single-stage retail sales tax — there is no input tax credit mechanism. PST paid on inputs is a cost. Some exemptions are available for production machinery, certain agricultural inputs, and goods purchased for resale (with valid resale certificate), but there is no general input recovery. Most BC businesses operate distinct cost-accounting for PST-bearing inputs versus GST/HST-bearing inputs.

Q. Do we need a Canadian bank account?

Not legally for federal GST/HST — CRA accepts payments from any bank account via wire or pre-authorised payment. Many Canadian B2B customers prefer CAD invoicing and CAD bank accounts for settlement; opening a Canadian CAD account through one of the major Canadian banks (RBC, TD, BMO, Scotiabank, CIBC) typically requires modest documentation but is achievable for foreign businesses. For QST through Revenu Québec, a Canadian account is sometimes operationally easier but not strictly required.

Q. We’re an Indian SaaS company selling B2C to Canadian consumers above CAD 30,000. Simplified non-resident regime — how complex is registration?

Operationally simple. The CRA non-resident digital services portal accepts online registration with minimal documentation — typically the foreign business’s tax identification number, contact information, and description of supplies. No Canadian fiscal representative is required. No Canadian bank account is required for the registration step. Quarterly filings are submitted through the same portal. Payment can be made by international wire to CRA. Processing time for the initial registration is typically 2–4 weeks. The regime was specifically designed to be low-friction to maximise voluntary compliance by foreign digital service providers.

09 · Recent changes and the road ahead

2019 — Quebec non-resident digital services regime

Effective 1 September 2019, Revenu Québec introduced the first Canadian non-resident specified-supplier regime for digital services to Quebec consumers. The regime predated the federal equivalent by almost two years and informed the design of the 1 July 2021 federal framework.

2021 — Federal non-resident digital services regime

Effective 1 July 2021, CRA introduced the simplified non-resident GST/HST regime for digital services and short-term accommodation supplies to Canadian consumers. Within 12 months of launch, several thousand foreign digital service providers had registered. The framework was extended in subsequent years to cover additional supply categories.

2022 — Goods marketplace facilitator expansion

Effective 1 July 2022, the GST/HST marketplace facilitator rules extended to non-resident sellers of goods stored in Canadian fulfilment warehouses. The change brought Amazon FBA and similar arrangements squarely into the federal framework.

2024 — Underused Housing Tax adjustments

The Underused Housing Tax (a separate federal annual tax on Canadian residential properties owned by non-Canadian individuals or non-resident corporations) had its application narrowed in 2024–2025 amendments. Not GST/HST but operationally relevant for foreign real-estate-holding structures.

2025 — Nova Scotia HST reduction

Effective 1 April 2025, Nova Scotia HST reduced from 15% to 14%. This was the first HST rate reduction in any HST province since the framework’s inception.

Outlook 2026–2030

Three trends to monitor: (1) potential further provincial alignment toward the federal framework (Quebec, BC, and Manitoba have all studied harmonisation periodically, though political will varies); (2) potential mandatory B2B e-invoicing aligned with international trends — CRA has consulted but no mandate is in force; (3) continued expansion of the simplified non-resident regime to additional supply categories as e-commerce models evolve.

10 · Primary sources & official references

Every fact in this guide is sourced. We list the primary references below. Where law changes between publication and your transaction date, the primary source governs.

• Canada Revenue Agency (CRA) — GST/HST
• CRA non-resident digital services portal
• Excise Tax Act (Part IX — Goods and Services Tax)
• Revenu Québec — QST
• British Columbia PST
• Government of Saskatchewan PST
• Manitoba RST
• Business Registration Online (BRO)
• Bank of Canada exchange rates
• CRA GST/HST Notice 286 — non-resident digital economy
• Marketplace facilitator rules — CRA guidance

Disclaimer & methodology

This guide was prepared by TaxDo’s editorial team in collaboration with practising Canadian indirect tax advisors. Every numerical threshold, statutory citation, and procedural detail was verified against the primary sources listed in section 10 on the date of publication (27 May 2026). Canadian indirect tax operates across federal CRA and four separate provincial regimes (Quebec QST, BC PST, Saskatchewan PST, Manitoba RST); rate changes and procedural amendments occur at federal and provincial levels independently. Always confirm the position applicable to your specific transaction with a Canadian-qualified indirect tax advisor or directly with CRA / Revenu Québec / the relevant provincial authority. This guide is general information, not advice on any specific transaction. TaxDo accepts no liability for reliance on this guide in lieu of jurisdiction-specific professional advice.