GST/HST Registration: What U.S. Retailers Selling Into Canada Need To Know

GST/HST Registration Registration with the CRA to collect, report, and remit GST/HST under the applicable regime. For U.S.-based retailers who sell goods or services to Canadian consumers or businesses, registration determines whether and how you must charge sales tax on Canadian sales, claim input tax credits, and file returns with the Canada Revenue Agency (CRA).

Registration creates a business number (BN) and a GST/HST account that tie your Canadian tax obligations to a single identifier. The rules apply to cross-border ecommerce, direct sales into Canada, and Canadian operations such as drop-shipping, fulfillment through Canadian warehouses, or marketplace sales where the seller is treated as the supplier under Canadian law.

When Registration Is Required

Canadian GST/HST law distinguishes mandatory registrants from "small suppliers." Retailers must register if their worldwide taxable supplies to Canada (including those of any associates) exceed the small-supplier threshold within a 12-month period. For most sellers the threshold is CA$30,000 (check CRA guidance for current thresholds and exceptions). Non-resident suppliers making taxable supplies in Canada also have registration triggers that can differ by the type of supply.

Where Sales Trigger GST, HST, Or None

How tax applies depends on the destination province and whether the supply is zero-rated or exempt.

• Destination Rules: Tax is levied based on where the goods are delivered or where the service is performed for consumption in Canada.
• HST vs GST: Provinces using HST (Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, Prince Edward Island) apply a harmonized rate; other provinces use the federal GST plus a provincial sales tax or their own systems.
• Zero-Rated Supplies: Some exports and certain goods/services are zero-rated (taxed at 0%), meaning registered businesses can claim input tax credits even though they charge no GST/HST to customers.

Non-Resident Registrants And Fulfillment Considerations

Non-resident retailers without a physical presence in Canada can still have GST/HST obligations if they make taxable supplies. Using a Canadian fulfillment service (warehouse or fulfillment-by-carrier) or a marketplace can change who is considered the supplier for GST/HST purposes. If goods are stored in Canada before sale, registration is often required.

Practical Example

A U.S. apparel merchant sells directly to Canadian consumers through its website. In Year 1 their taxable sales into Canada total CA$25,000 — they remain a small supplier and are not required to register. In Year 2 sales rise to CA$40,000 within 12 months; they must register, begin charging GST/HST on taxable sales from the effective registration date, and file regular returns. If they use a Canadian 3PL to store and ship goods, they must register earlier and comply with CRA reporting for goods stored in Canada.

How Registration Affects Pricing And Accounting

Once registered you must collect tax on taxable sales and remit net amounts to CRA after claiming input tax credits (ITCs) for eligible business purchases. Registration affects checkout flows (displaying tax at point of sale), accounting systems configuration (mapping GST/HST accounts), and reconciliation with carrier and customs documentation when importing.

• Label: Checkout Display — show customers the tax charged and the total price, including GST/HST, to avoid chargebacks and customer service issues.
• Label: Inventory Location — goods stored in Canada may trigger registration; track SKU storage locations by country.
• Label: Input Tax Credits — keep vendor invoices and customs documentation to support ITC claims.

Tips For U.S. Retailers

Plan registration timing around sales growth and fulfillment strategy. Use the CRA's registration channels (see sources) and consider consulting Canadian tax counsel for complex marketplace or digital goods situations. Automate GST/HST calculation in your checkout and coordinate with your 3PL to ensure correct tax handling when inventory moves into Canada.

In short, the GST/HST Registration is the legal mechanism that lets CRA track and collect Canadian sales tax from sellers — U.S. retailers must evaluate sales volume, storage location, and marketplace arrangements to decide when and how to register, collect, and remit GST/HST.