Quick Answer
Canadian sellers exporting physical goods to international customers generally charge 0% GST/HST (zero-rated supplies). However, strict documentation requirements apply — you must keep proof of export for every zero-rated transaction. Digital services sold to non-Canadian customers follow separate rules.
Selling internationally from Canada triggers specific GST/HST rules. The good news: most exports are zero-rated, meaning you don't charge GST/HST. The complication: you must document every export properly or lose the zero-rating benefit.
Zero-Rated Exports: The Basic Rule
Physical goods exported from Canada to international buyers are generally zero-rated supplies — subject to GST/HST at 0%. This means you don't charge GST/HST to foreign customers, but you can still claim Input Tax Credits on the Canadian expenses you incurred to make those sales.
Documentation Required for Zero-Rating
To claim zero-rating, you must keep evidence that the goods actually left Canada:
- Commercial invoice showing non-Canadian shipping address
- Bill of lading or courier tracking confirming international delivery
- Export declaration (B13A) for shipments over $2,000 CAD
Cross-Border Digital Services
Digital products (software, e-books, online courses, templates) sold to non-resident consumers are generally zero-rated if the recipient is outside Canada. However, if you're selling digital products to business customers outside Canada, the treatment depends on whether they are registered for Canadian GST/HST and other factors.
Selling Into the US: No US Sales Tax Obligation for Most Canadian Sellers
Most small Canadian sellers shipping to US customers have no US sales tax obligation unless they have nexus (physical presence or economic nexus) in a US state. However, if your US sales exceed certain state-level thresholds (typically $100,000 or 200 transactions), you may be required to register for sales tax in those states. Consult a cross-border tax advisor if your US sales are significant.
MaxRefund Handles Cross-Border GST/HST Compliance
We navigate the zero-rating rules, documentation requirements, and CRA reporting for Canadian sellers with international customers.
Get a Free Quote