A non-resident can have to register for Canadian GST/HST under the normal rules or under a separate digital-economy measure. Which test applies depends on the supplies, whether the business carries on business in Canada, and how it sells—not simply the owner’s nationality. Start with CRA’s non-resident registration guidance and digital-economy registration options.
Normal and simplified registration compared
| Question | Normal GST/HST | Simplified digital-economy GST/HST |
|---|---|---|
| Who is it for? | Ordinary rules include certain non-residents making taxable supplies in Canada while carrying on business here. Some qualifying-goods sellers must use normal registration under the digital-economy measure. | Eligible non-resident suppliers and operators under specified cross-border digital or platform-based accommodation measures. |
| Threshold | The ordinary small-supplier test generally uses worldwide taxable supplies of the business and associates over one quarter or four consecutive quarters. Some activities have exceptions. | For cross-border digital supplies, generally more than $30,000 of relevant actual or expected non-zero-rated supplies to specified Canadian recipients over a 12-month period. Platform-deemed supplies may be excluded from the seller’s calculation. |
| Credits | Eligible registrants can claim input tax credits subject to the usual conditions and records. | No ITCs under the simplified account. A person meeting the conditions may apply voluntarily for normal registration instead. |
| Security | CRA generally requires security from some non-residents, with exceptions. | CRA says no security deposit is needed for the simplified account. |
Sources: CRA normal registration, digital threshold and account options. A “specified Canadian recipient” generally means a recipient whose usual place of residence is in Canada and who has not provided satisfactory evidence of normal GST/HST registration. A simplified registration does not create a normal account or grant input tax credits.
Example: a US software seller
A US business with no Canadian business operation sells taxable streaming subscriptions directly to Canadian consumers and is not registered under the normal regime. If its relevant actual or reasonably expected Canadian revenue exceeds $30,000 over the applicable 12-month period, the simplified cross-border measure may require registration. That is a different calculation from the worldwide ordinary small-supplier test. If a registered platform is deemed to make specified sales, those sales can be excluded from the seller’s threshold and included in the operator’s. CRA: digital threshold.
If the same seller sells goods from a Canadian warehouse directly to Canadian buyers, the qualifying-goods measure may require normal registration. Its separate threshold counts relevant actual or reasonably expected qualifying-goods revenues to specified recipients over a 12-month period, excluding supplies deemed made by a registered distribution platform. A non-resident that does not carry on business in Canada and sells qualifying goods only through such a platform does not have to register under that measure for those platform supplies. Physical goods are not automatically handled under the digital simplified account. CRA: qualifying goods; qualifying-goods threshold.
Non-resident ride-sharing drivers
A self-employed driver providing taxable commercial ride-sharing in Canada must register for those services even if a small supplier. CRA says the effective date is the day the driver starts making taxable ride-sharing supplies. Its guidance also describes a non-resident business-number and account registration web form and a Form RC1 mail/fax route. An authorized platform may carry out some steps on the driver’s behalf; the driver should verify the arrangement. A small supplier’s registration may initially apply only to ride-sharing unless they request otherwise. CRA: commercial ride-sharing.
How to register and what to prepare
- List the supply types, sales channels, customers’ registration status and where goods are held or services supplied. Determine whether the ordinary, digital, qualifying-goods or ride-sharing rules apply.
- Calculate the relevant threshold using the correct period and inclusions. Retain the calculation and the information supporting the effective date.
- For normal registration, follow CRA’s non-resident instructions, including RC1 or the applicable online route. For simplified registration, use CRA’s digital-economy registration process; it is a separate account.
- Plan for invoicing and filing, and check whether security is required. Confirm Quebec’s separate QST rules; Revenu Québec generally administers GST/HST where the business is physically located in Quebec, with an exception for selected listed financial institutions. CRA: Quebec.
Sources checked October 16, 2026: CRA registration, digital-economy, qualifying-goods and ride-sharing guidance linked above.