A Canadian business may charge 0% GST/HST on a service to a US client if the client is a non-resident and the applicable export provision’s conditions are met. A US address or payment in US dollars alone does not establish that result. A sale can be zero-rated, taxable at a regular rate, exempt or made outside Canada depending on the facts. CRA’s export guidance sets out the tests.
Do you charge GST to foreign clients?
A service to a foreign client may qualify for the 0% export rate, but only if the recipient is a non-resident and that specific supply meets its applicable conditions. For a taxable supply that does not qualify for zero-rating, determine the applicable rate from the place-of-supply rules. The supplier must retain evidence supporting the treatment. CRA: exported services.
Start with what you sold and who received it
Identify the actual contracting recipient and the supply: consulting, work on physical goods, property-related services, software rights and goods have different rules. Confirm the recipient’s non-resident status for GST/HST and where any relevant property is located. A foreign company’s Canadian establishment can change the analysis; do not assume a US mailing address settles it. Keep the contract and evidence used to determine status. CRA: determining residence.
Example: a US company buys consulting. A Canadian consultant advises a non-resident US company about its operations outside Canada. If the service is an advisory or consulting service and none of the exclusions applies, CRA’s specific section 23 provision can zero-rate it. The general service-export provision excludes advisory services; the separate provision is why the classification matters. CRA: exported services.
Example: Canadian real estate. A Canadian architect designs alterations to an Ontario building owned by a non-resident. A service directly connected with real property in Canada is excluded from the general and advisory-service export rules. Do not automatically invoice 0%; check the tax status and the place-of-supply rule for the actual service. The fact that one provision excludes a supply does not, by itself, rule out every other provision. CRA: services related to property.
Services, software and goods have different tests
| What you supply | Question to resolve |
|---|---|
| A general service | Is it supplied to a non-resident, and do the applicable exclusions apply, including rules involving an individual in Canada or a direct connection with Canadian property? |
| Advisory or professional work | The general export rule excludes it, but a separate provision may zero-rate it if its own conditions are met. |
| Software rights or another intangible | The general intangible-property export provision includes a test of whether the non-resident is registered under the normal GST/HST regime and excludes some rights, including those usable only in Canada. |
| Physical goods | Check the relevant export provision, who ships or exports the goods and supporting evidence. The recipient’s US address alone does not prove the conditions. |
See CRA’s service and intangible memorandum and goods export memorandum.
Do zero-rated US sales count toward the $30,000 threshold?
Yes. Under the ordinary small-supplier rules, worldwide taxable supplies, including zero-rated supplies, of the business and its associates generally count. If the total exceeds $30,000 in one calendar quarter, small-supplier status ends on the supply that crosses the limit. If it is exceeded over four or fewer consecutive quarters but not in one quarter, status ends at the end of the following month. Effective-date and application rules are explained in CRA’s registration table.
A zero-rated supply is taxable at 0%; it is different from an exempt supply. A registered business may claim input tax credits for eligible GST/HST paid or payable on inputs used in commercial activity, subject to the normal evidence and eligibility rules. Registration and ITCs are not automatic just because a customer is foreign. CRA: type of supply.
What records should a US-client invoice have?
Keep the invoice, contract, description of the supply, evidence supporting non-resident status and the basis for the treatment. For shipped goods, keep shipping and export evidence as applicable. Identify the invoice currency and record the Canadian-dollar conversion used for GST/HST reporting. An invoice marked “0%” is useful to explain the treatment but is not a substitute for the export evidence. See CRA’s records guidance and foreign-currency memorandum.
Does Canadian GST replace American sales tax?
No. Canadian GST/HST and US state or local sales taxes are separate. US obligations depend on the state, the product or service and the seller’s connection to that jurisdiction. For example, New York says services are generally exempt from its sales tax unless specifically taxable, and its published list includes specific taxable services. Check the rules in the relevant state rather than assume the same outcome everywhere. A Canadian zero-rate finding does not resolve a US filing or collection question. New York tax department. If the business is physically located in Quebec, Revenu Québec generally administers GST/HST, subject to the selected listed financial institution exception; QST must be assessed separately. CRA: GST/HST and Quebec.
Does a US client trigger foreign-property reporting?
A US customer alone does not settle whether Form T1135 is required. CRA says Canadian-resident individuals, corporations and certain trusts must file if their specified foreign property cost more than C$100,000 at any time in the year. Property used or held exclusively in an active business is excluded from specified foreign property; examine the actual asset and use. This income-tax reporting question is separate from GST/HST. CRA: Foreign Income Verification Statement.
Sources checked October 16, 2026: CRA export, registration, supply and currency guidance linked above.