Do US Sellers Owe GST/HST Shipping to Canada?

Do US Sellers Owe GST/HST on Sales to Canada?

Yes, if your worldwide taxable revenue passes the $30,000 CAD small supplier threshold and you sell taxable goods or services to Canadian customers, GST/HST registration becomes mandatory regardless of where your business is incorporated.

Physical presence in Canada is not required to trigger this obligation. A US-based Shopify store shipping products to Canadian addresses, or an Amazon FBA seller using a Canadian fulfillment center, can both be on the hook.

This guide applies to US-based e-commerce businesses selling into Canada, whether through their own Shopify store, Amazon FBA, or both, who are unsure whether Canadian tax rules apply to them yet.

Why This Matters for US-Based Sellers

The CRA does not distinguish between resident and non-resident businesses when it comes to the small supplier threshold. Crossing $30,000 CAD in worldwide revenue triggers the same registration requirement whether your business is in Toronto or Texas.

Ignoring this creates a real financial exposure. If the CRA determines you should have registered months earlier, you may owe back tax on sales you never collected from customers, since you cannot retroactively charge buyers who already paid.

It also affects your ability to operate cleanly on Canadian marketplaces. Some payment processors and marketplace programs check for valid tax registration before releasing full account features to cross-border sellers.

Step-by-Step Guide for US Sellers Shipping to Canada

Step 1: Track Your Worldwide Taxable Revenue

The $30,000 CAD threshold counts your total worldwide taxable revenue, not just sales made to Canadian customers. A US seller doing most of their business domestically can still cross this threshold quickly.

Step 2: Determine If You Have Amazon FBA Inventory in Canada

Storing inventory in a Canadian Amazon fulfillment center can affect your tax position even before you cross the small supplier threshold on revenue alone. Review our Amazon FBA Canada tax guide for how FBA inventory location factors into this.

Step 3: Register as a Non-Resident Business

US businesses without a Canadian entity can still register for GST/HST as a non-resident. The process runs through the same CRA Business Registration Online system used by Canadian businesses. See our full walkthrough on how to register for GST/HST.

Step 4: Configure Your Sales Channels for Canadian Tax

Once registered, enable Canadian tax collection in Shopify and confirm your Amazon Seller Central settings reflect your new GST/HST number. Our Shopify GST/HST guide covers the exact settings screens.

Step 5: Apply the Correct Provincial Rate

GST/HST is destination-based, meaning the rate depends on your Canadian customer’s province, not your US business address. Check our GST/HST rates by province guide before your first Canadian sale under your new registration.

Step 6: Understand How This Differs From US Sales Tax Nexus

US sales tax nexus rules and Canadian GST/HST rules are entirely separate systems with different thresholds and triggers. If you are also tracking US state nexus obligations, see our guide on Amazon FBA sales tax nexus to keep both systems straight in your compliance calendar.

Practical Tips for Better Results

Track worldwide revenue monthly, not just Canadian sales. Many US sellers miss the threshold because they only monitor Canadian-specific numbers.

Common mistake: assuming no US business entity in Canada means no GST/HST obligation. Non-resident registration exists specifically for this situation and does not require a Canadian company.

Common mistake: registering for GST/HST but forgetting to update Amazon and Shopify tax settings afterward, which means tax is never actually collected from customers despite being owed to the CRA.

Efficiency tip: set a recurring monthly check on worldwide revenue against the $30,000 CAD threshold, so registration happens proactively instead of reactively after a CRA notice.

Conclusion

Being a US-based business does not exempt you from Canadian GST/HST once you cross the small supplier threshold or store inventory in a Canadian fulfillment center. Track your worldwide revenue, register as a non-resident when required, and configure your sales channels correctly from day one.

Not sure if your current sales into Canada already require registration? Book a free consultation and we will review your revenue and FBA footprint together.