Quick Answer
TikTok Shop Canada acts as a marketplace facilitator for GST/HST — it collects and remits on your behalf. However, TikTok Shop sales count toward your $30,000 registration threshold, and all profits are still taxable income you must declare on your T1 or T2.
TikTok Shop's Canadian launch in 2024 created a new sales channel with its own tax rules. As a marketplace facilitator, TikTok Shop takes on GST/HST collection duties — but sellers still have significant obligations.
TikTok Shop as a Marketplace Facilitator
For Canadian GST/HST purposes, TikTok Shop is a marketplace facilitator. For orders shipped to Canadian addresses, TikTok Shop:
- Calculates the correct provincial rate (HST, GST+PST, or GST only)
- Collects the tax at checkout from the buyer
- Remits directly to the CRA
What TikTok Shop Does NOT Handle
- Your income tax on profits
- GST/HST registration (still your responsibility once you hit $30,000)
- GST/HST on your other sales channels
Bookkeeping for TikTok Shop Sellers
TikTok Shop payouts, like all marketplace platforms, are net amounts after fees. Download your TikTok Shop Seller Center reports monthly and reconcile gross sales against deposits. TikTok's commission fees, transaction fees, and shipping subsidies all require proper expense categorization.
Commission Rates and Fee Structure
TikTok Shop Canada charges category-based commission fees (typically 2–8%) plus payment processing fees. These are fully deductible business expenses. TikTok Shop advertising spend (LIVE shopping ads, product ads) is also deductible as advertising expense.
MaxRefund Handles Tax Compliance for TikTok Shop Sellers
We help Canadian TikTok Shop sellers with bookkeeping, GST/HST filings, and income tax returns. Remote, bilingual, built for social commerce.
Get a Free Quote