Quick Answer
Shopify sellers must register for GST/HST once total revenue exceeds $30,000 in any 12-month period. Unlike Etsy, Shopify is not a marketplace facilitator — you are fully responsible for charging, collecting, and remitting GST/HST on your own.
When you sell on Shopify in Canada, you are your own tax collector. Shopify provides tools to calculate tax, but the legal responsibility to register, collect, and remit GST/HST belongs entirely to you as the store owner — not Shopify.
When Do You Need to Register for GST/HST?
The registration threshold is $30,000 in revenue over any 12-month rolling period. This counts all taxable supplies, not just Shopify sales. If you also sell at markets or on Amazon, that revenue counts too. Once you cross this threshold, you must register within 29 days.
You can also register voluntarily before reaching $30,000 — which makes sense if you have significant business expenses, since GST/HST registration lets you claim Input Tax Credits (ITCs) back on those purchases.
How Shopify Tax Canada Works (2026)
Shopify launched Shopify Tax Canada in May 2026, replacing the previous Basic Tax system. Shopify Tax automatically calculates the correct provincial rate based on where your customer is located and applies it at checkout.
What Shopify Tax Does NOT Do
Shopify Tax calculates and displays the tax at checkout. It does not register you for GST/HST, file your returns, or remit the tax to the CRA. You must still register, track your tax collected, and file your returns yourself (or with a bookkeeper/accountant).
Charging GST/HST: Which Rate Applies?
For Shopify stores, the rate depends on where your customer is located, not where you are. HST provinces (Ontario, Nova Scotia, New Brunswick, Newfoundland, PEI) get the combined HST rate. BC, Saskatchewan, and Manitoba have provincial sales taxes separate from federal GST. Alberta gets GST only (5%).
Filing GST/HST Returns
Your filing frequency depends on your annual revenue:
- Under $1.5M — annual or quarterly (you choose at registration)
- $1.5M–$6M — quarterly (mandatory)
- Over $6M — monthly (mandatory)
Input Tax Credits (ITCs)
As a registered GST/HST business, you can claim back the GST/HST you paid on business expenses — your Shopify subscription, advertising, shipping supplies, inventory, and professional services. Keep all receipts with the GST/HST amount clearly shown.
GST/HST Filing for Your Shopify Store
MaxRefund handles GST/HST registration, returns, and compliance for Canadian Shopify sellers. One less thing to worry about.
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