Quick Answer
Shopify Tax Canada, launched May 13, 2026, automatically calculates the correct provincial tax rate at checkout for Canadian stores. It replaces Basic Tax for Canada. However, it does not register you for GST/HST, file your returns, or remit tax to the CRA — those remain your responsibility.
On May 13, 2026, Shopify launched Shopify Tax Canada — replacing the previous Basic Tax system for Canadian merchants. The new tool improves tax calculation accuracy at checkout, but it's important to understand exactly what it does and doesn't do for your CRA obligations.
What Shopify Tax Canada Actually Does
Shopify Tax Canada automatically determines the correct tax rate to apply at checkout based on the customer's delivery address. Key improvements over Basic Tax:
- More accurate province-by-province rate calculation (HST, GST+PST, GST only)
- Handles zero-rated goods (basic groceries, prescription drugs) automatically
- Better handling of digital goods vs. physical goods distinctions
- Improved reporting within Shopify's Finance section
- Syncs with Shopify's accounting app integrations
What Shopify Tax Canada Does NOT Do
This is critical. Shopify Tax Canada is a calculation tool, not a compliance system:
- It does not register you for GST/HST with the CRA
- It does not file your GST/HST returns (Form GST34)
- It does not remit tax to the CRA on your behalf
- It does not handle Quebec's separate QST registration with Revenu Québec
- It does not calculate your net tax owing after Input Tax Credits
How to Enable Shopify Tax Canada
For most Canadian Shopify stores, Shopify Tax Canada activates automatically as of the May 2026 launch. To verify your settings: go to Settings → Taxes and duties → Canada in your Shopify admin. Confirm that the correct provinces are listed and that your product tax categories are set correctly for your inventory type.
Quebec Sellers: Extra Step Required
If you sell to Quebec customers, you need a separate QST registration with Revenu Québec (not just the CRA). QST is administered provincially at 9.975% on top of the federal 5% GST for a combined 14.975%. Shopify Tax Canada calculates this correctly at checkout, but you still need your own QST number and must file QST returns with Revenu Québec separately.
Your Ongoing GST/HST Responsibilities
After enabling Shopify Tax Canada, your CRA responsibilities remain unchanged:
- Register for a GST/HST business number (if not already done)
- Charge the correct rate at checkout (Shopify Tax Canada handles this)
- Track tax collected separately from your revenue
- File GST/HST returns on your required schedule (annual, quarterly, or monthly)
- Remit the net tax owing (tax collected minus ITCs claimed)
Handle the Rest After Shopify Tax
Shopify Tax calculates it. MaxRefund files it. We handle your GST/HST returns and make sure your CRA remittances are correct and on time.
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