An online seller’s GST/HST obligations depend on what is sold, where it is delivered, the seller’s registration status and the platform’s legal role. For qualifying goods sold through a distribution platform, CRA distinguishes vendors registered under the normal GST/HST regime from those that are not. That distinction applies to both Canadian and non-resident vendors. CRA: qualifying goods.
Do you need a GST/HST number to sell online?
Under ordinary small-supplier rules, a business generally counts worldwide taxable supplies, including zero-rated supplies, of itself and its associates across its activities. The $30,000 test is not a separate allowance for each storefront. Above the limit, the effective date depends on whether it was crossed in one calendar quarter or over four or fewer consecutive quarters. Voluntary registration may be available below it. CRA: when to register.
For example, a Canadian seller with $22,000 of its own taxable direct sales through one channel and $10,000 through another in the same quarter has $32,000 before deducting any processing fees. If the ordinary test applies and these amounts are the relevant consideration, the seller exceeds the limit on the transaction that takes the total above $30,000. Actual threshold calculations require the business’s and associates’ relevant supplies and transaction dates. For a non-resident vendor subject to the separate qualifying-goods measure, sales deemed made by a registered platform are excluded from that measure’s threshold; test the correct rules before counting them. CRA: qualifying-goods threshold.
Who collects on marketplace sales?
| Situation | Federal collection rule for qualifying goods |
|---|---|
| Seller registered under the normal GST/HST regime | The vendor is responsible for collecting GST/HST on its qualifying goods, including those facilitated by a platform. |
| Seller not registered under the normal regime; sale facilitated by a distribution platform operator | The operator must collect GST/HST on the final sale price of qualifying goods under the CRA measure. This can include an unregistered Canadian seller as well as an unregistered non-resident. |
| Goods mailed from outside Canada directly to a Canadian address | The qualifying-goods measure described here excludes this shipment; other import or registration rules may apply. |
Qualifying goods include the defined taxable goods delivered or made available in Canada, such as goods shipped from a Canadian fulfilment warehouse. The platform and supply must actually meet the measure’s definitions; a site that only processes payments is not automatically a distribution platform operator. CRA’s qualifying-goods guidance.
Example: An unregistered Canadian seller’s taxable inventory is in an Ontario fulfilment warehouse. A registered distribution platform facilitates an order sent to Nova Scotia. If the goods and operator meet the measure’s conditions, the operator collects HST on the final sale; the current Nova Scotia rate is 14%. If the seller is instead normally registered, CRA’s vendor rule applies. CRA: qualifying goods; current rates.
Amazon, Etsy and Shopify: what to check
- Amazon: Check the seller account’s tax settings and the settlement report for the actual order, and tell the platform your correct registration status. The CRA rule above—not the marketplace name alone—determines the federal treatment of a qualifying-goods sale. A platform’s tax number on a fee invoice identifies that platform, not your own registration.
- Etsy: Etsy says that for physical goods sold from Canada to Canadian buyers, it collects and remits GST/HST when the relevant seller tax ID has not been added. With the applicable ID on the account, Etsy says the seller handles the tax; review the precise order and QST/PST rules. Etsy’s Canadian tax guidance.
- Shopify: After registering where needed, Shopify’s documented setup is Settings → Taxes and duties → Canada → Collect sales tax, then choose the registered region and enter the tax number. Review product classifications and any needed overrides. Calculating tax in a store does not replace checking the merchant’s registration and filing responsibilities. Shopify’s Canadian setup.
Reconcile the order, fees and return
For each channel, retain the gross order value, refunds, shipping, platform fees, amounts collected by the platform and amounts collected by you. Determine which person is responsible for each tax amount before completing the return; net deposits alone do not describe the sale. A registered seller may claim ITCs only for eligible GST/HST on commercial expenses with the required support. CRA registration; GST/HST filing guide.
GST/HST is separate from BC and Saskatchewan PST, Manitoba RST and Quebec QST; product, destination and platform rules vary. Check the relevant provincial authority and platform details rather than applying one combined rate to all orders.
Sources checked October 16, 2026: CRA qualifying goods, registration and rates; Shopify and Etsy help linked above.