Table of contents
- 1. Key takeaways
- 2. Canadian sales tax in plain English
- 3. Who needs to register
- 4. Need provincial taxes and an English-French store configured? Tell us your products and markets.
- 5. Set up taxes in Shopify
- 6. Business details and tax numbers
- 7. Collect by province
- 8. Tax-inclusive or tax-exclusive prices
- 9. Tax on shipping
- 10. Test orders in several provinces
- 11. English and French on one store
- 12. Payments in Canada
- 13. Shipping in Canada
- 14. Currency and pricing
- 15. Mistakes to avoid
- 16. What to do next
- Canada operates a dual federal and provincial tax system: federal GST (5%), harmonized HST (13% or 15%), provincial PST (6% to 7%), and Quebec QST (9.975%).
- The federal small supplier threshold is C$30,000 in gross taxable sales over four consecutive calendar quarters.
- Stores selling to Quebec consumers must comply with strict French language legislation (Bill 96 / Charter of the French Language).
- Implementing subfolder language paths (e.g., /fr-ca/) preserves SEO authority while delivering localized French checkout experiences.
Canada has federal GST, HST in some provinces, PST in others and QST in Quebec. Small businesses generally must register once sales pass C$30,000, and businesses selling to Quebec consumers generally need French content. Set taxes by province in Shopify and give each language its own URL. Verify current rules.
Statutory Notice: This article is general information, not tax or legal advice. Verify requirements with the Canada Revenue Agency (CRA), Revenu Québec, and the Office québécois de la langue française (OQLF).
Canadian sales tax in plain English
Unlike the United States where sales tax rules revolve around state economic nexus, or the UK where a single national VAT applies, Canada utilizes a hybrid system that combines federal and provincial jurisdictions:
| Province / Territory | Tax Structure | Total Rate | Breakdown |
|---|---|---|---|
| Ontario | HST | 13% | Combined Federal (5%) + Provincial (8%) |
| Nova Scotia, New Brunswick, PEI, NL | HST | 15% | Combined Federal (5%) + Provincial (10%) |
| British Columbia | GST + PST | 12% | 5% Federal GST + 7% Provincial PST |
| Quebec | GST + QST | 14.975% | 5% Federal GST + 9.975% Quebec Sales Tax |
| Alberta, Northwest Terr., Nunavut, Yukon | GST Only | 5% | 5% Federal GST (No Provincial Tax) |
| Saskatchewan, Manitoba | GST + PST | 11% / 12% | 5% Federal GST + 6% / 7% Provincial PST |
Who needs to register
Under CRA regulations, businesses exceeding the C$30,000 small supplier threshold across four consecutive calendar quarters must register for GST/HST and collect tax on taxable supplies. Non-resident ecommerce merchants selling digital goods or cross-border goods into Canada must also evaluate CRA simplified GST/HST rules. Review our guide on Shopify cross-border duties and import taxes for customs logistics.
Need provincial taxes and an English-French store configured? Tell us your products and markets.
Our dedicated Shopify developers configure GST/HST/PST tax matrices, Bill 96 Quebec French translations, and localized Canadian checkout workflows.
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Business details and tax numbers
Navigate to Settings > Taxes and duties > Canada in your Shopify Admin. Enter your 9-digit CRA Business Number (BN) and provincial tax identification numbers (e.g., Quebec QST ID or BC PST number) to ensure compliant tax invoicing.
Collect by province
Shopify automatically maps the destination address of the customer to determine the correct tax rate. When an order ships to Toronto, Shopify collects 13% HST; when an order ships to Calgary, it applies 5% GST.
Tax-inclusive or tax-exclusive prices
In Canada, consumer prices are traditionally displayed exclusive of tax, with the applicable provincial tax calculated and added at checkout. This aligns with North American retail expectations.
Tax on shipping
Freight and handling charges in Canada are generally subject to sales tax based on the destination province of the recipient.
Test orders in several provinces
Before launching marketing campaigns, place test orders across Ontario, British Columbia, Alberta, and Quebec to verify that line-item tax calculations match statutory rates.
English and French on one store
Under Quebec’s Charter of the French Language (Bill 96), consumers in Quebec have the explicit legal right to be informed and served in French. Ecommerce storefronts marketing to Quebec residents must make French content accessible under conditions at least as favorable as English:
- Subfolder URLs: Utilize Shopify Markets to assign dedicated subfolders (e.g.,
/fr-ca/) rather than auto-translating dynamically via client-side JavaScript. This preserves indexing for both language variants. - Complete Checkout Translation: Product titles, descriptions, size charts, return policies, and checkout fields must be completely translated.
- Professional Copywriting: Avoid literal machine translations for marketing copy; regional Québécois French idioms differ significantly from European French.
Payments in Canada
Through Shopify Payments, merchants in Canada can accept Visa, Mastercard, American Express, Apple Pay, Google Pay, and Shop Pay. Interac Online has largely been replaced by Interac Debit on Apple Pay and Google Pay, making mobile wallet optimization essential.
Shipping in Canada
Canada Post provides baseline parcel coverage across all postal codes. For dense urban corridors (Toronto, Montreal, Vancouver), integrating private couriers such as Purolator, FedEx Canada, or UPS Canada delivers faster transit times. Set distinct shipping profiles for remote northern territories (Yukon, NWT, Nunavut) to prevent eating courier surcharges.
Currency and pricing
Display prices in native CAD ($) using clean rounding rules (.00 or .99) as detailed in our Shopify multi-currency pricing guide. Avoid forcing Canadian shoppers to pay in USD, which triggers consumer credit card foreign transaction fees (typically 2.5% to 3.5%).
Mistakes to avoid
- Applying a Flat 5% GST Sitewide: Failing to configure provincial HST and PST results in substantial unpaid tax liabilities upon CRA audit.
- Ignoring Quebec Language Requirements: Risking formal compliance complaints from the OQLF by omitting French product details.
- Overlooking Shopify Platform Fees: Factor monthly software costs and payment gateway deductions into your margins using our Shopify pricing analysis.
What to do next
Launch your Canadian storefront storefront with total compliance. Explore our Shopify store design and development services and consult our dedicated Canadian Shopify agency specialists to architect your bilingual commerce hub.
Notice: This article is general information, not tax or legal advice. Verify liabilities with the CRA, Revenu Québec, and certified advisors.
