Home›E-commerce sellers
Shopify · Amazon · Etsy · eBay
Accounting and tax for Canadian e-commerce sellers.
GST/HST when the marketplace collects it and when you do, US state sales tax registered and filed for you, books built from gross sales instead of net payouts, and a year-end that survives a CRA look. For sellers in Ontario and across Canada.
Where sellers get caught
Four questions that decide whether your numbers are right.
None of these are exotic. They are the ones that come up on every seller's first year-end, and the answers are not what most sellers assume.
-
Do your US sales count toward the $30,000 threshold?
Yes. Exports to US customers are zero-rated — taxable at 0%, not exempt — so they count toward the $30,000 small supplier threshold, which is measured on worldwide taxable supplies. A Canadian seller shipping almost everything to the United States still has to register, even though it collects no GST/HST. Registering is also what lets you claim back the GST on your costs.
-
Is the marketplace collecting, or are you?
Since July 1, 2021 a platform can be deemed to make the sale where the seller is not registered and the goods are delivered in Canada. Register and give the platform your GST/HST number and you collect it yourself. Stay unregistered and Amazon or Etsy generally collects instead — which is fine until you try to claim input tax credits you never became entitled to.
-
Which rate applies to a sale shipped to another province?
The destination's. Where you ship to an address in a province, the sale is generally deemed made there: 13% in Ontario, 14% in Nova Scotia, 15% in New Brunswick, Newfoundland and Labrador and PEI, 5% GST elsewhere. A single flat rate across the country is one of the most common set-up errors in Shopify.
-
Does your inventory sit in the United States?
If you use FBA, probably. Inventory in a state can create sales tax nexus on its own in some states, and not in others — Washington says it does, Illinois says marketplace-only inventory does not unless you also sell outside the marketplace. It is state by state, and the answer changes what you have to register for.
What we do for sellers
Registered, filed and reconciled — not just explained.
-
US sales tax, set up and filed
We work out where you have nexus, register you in the states that need it, set the rates and product taxability up in Shopify or your platform, and file the returns on their schedule. Marketplace sales are usually collected by Amazon; it is your own store and your registration obligations that are left over, and that is the part sellers miss.
-
GST/HST registration and returns
Registration at the right effective date, destination rates set correctly by province, marketplace-collected tax separated from tax you collect yourself, and input tax credits claimed on the GST you pay at the border and on your costs.
-
Bookkeeping from gross sales
Shopify, Amazon and Stripe pay you net of fees. Revenue has to be booked gross with the fees as an expense, or your return understates both. Since 2024 the platforms also report your gross quarterly sales and fees straight to the CRA, so net-deposit bookkeeping now creates a visible mismatch.
-
Inventory and cost of goods sold
Counted and valued at year-end the way the CRA requires — including stock sitting in a Canadian fulfilment centre, in a US fulfilment centre and in transit, which is where sellers under-count.
-
Importing
The import/export (RM) account through CARM, GST paid at the border recovered as an input tax credit, and the importer-of-record question settled before a broker or a DDP arrangement quietly takes the recovery away from you.
-
The corporation and the year-end
Whether to incorporate and when, the T2 and financial statements, salary versus dividends, and the US filing position if you hold inventory in the States. How incorporation works with us →
Guides for sellers
The answers, written out.
Common questions
What sellers ask us first.
Do I need to register for GST/HST if I only sell on Amazon?
Once your worldwide taxable supplies pass $30,000 over four consecutive calendar quarters, yes — and immediately if you pass it within a single quarter. Below that you can stay unregistered, in which case the marketplace generally collects the tax on Canadian deliveries instead of you. Registering voluntarily is often worth it anyway, because it is what lets you claim back the GST/HST on your costs.
My customers are all in the United States. Do I still have to register?
Yes, once you pass $30,000. Exports are zero-rated rather than exempt, so they count toward the threshold even though you charge no tax on them. This surprises almost every seller who hears it for the first time, and it is the most common registration mistake we see.
Can you register and file my US state sales tax?
Yes. We review where your sales and your inventory put you over a state's threshold, register you there, configure the rates and product taxability in your store, and file the returns. Marketplace facilitator laws mean Amazon collects on Amazon sales in most states — your own website is usually what creates the filing obligation.
Does keeping FBA inventory in the US mean I owe US income tax?
Usually not on the profits. The Canada–US treaty says using a facility solely to store or deliver goods does not by itself create a permanent establishment, so business profits generally stay taxable in Canada. That is a treaty position, not an exemption from filing — a Canadian corporation relying on it normally files a protective Form 1120-F with Form 8833, because not filing can forfeit deductions against any US income. Sales tax is a separate question with a different answer.
What GST/HST rate should my store charge?
The rate of the province you ship to: 13% Ontario, 14% Nova Scotia, 15% New Brunswick, Newfoundland and Labrador and PEI, 5% elsewhere. Set it by destination in your platform. BC, Saskatchewan, Manitoba and Quebec also have their own provincial taxes outside the GST/HST system, which your store will not handle for you.
Do I have to keep my books in Canada?
Your records have to be kept at your place of business or residence in Canada unless the CRA gives written permission otherwise, and keeping electronic records outside Canada needs CRA approval. For sellers whose books live entirely in US-hosted software this is a real and commonly overlooked rule. Records are kept for six years from the end of the tax year they relate to.
General information for Canadian e-commerce sellers, not advice for your business. US state rules differ from state to state and change often. See also GST/HST for Shopify and Amazon sellers.
Selling online and unsure what you owe where?
Call 647-870-8498 or email info@ghayurtax.com. We will tell you what has to be registered, and what can wait.