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This guide provides an overview of VAT (Value Added Tax) in Canada, covering applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is intended for businesses engaged in transactions within Canada or with Canadian customers.
Canada’s VAT system is known as GST/HST (Goods and Services Tax / Harmonized Sales Tax). This system includes both federal GST and provincial sales taxes (PST) or HST for certain provinces, managed at both federal and provincial levels.
Canadian Dollar (CAD)
15-digit Business Number (BN), e.g., 123456789 RT0001
No, not required for non-resident businesses.
Yes, available for businesses below the threshold.
| Rate | Rate Type | Description |
| 5% | Federal GST Rate | Applies to goods and services in non-participating provinces |
| 13% – 15% | HST Rate | Applies to goods and services in participating provinces |
| Varies | PST Rate | Additional provincial sales tax in certain provinces |
| Business Type | VAT Registration Threshold |
| Resident Businesses | CAD 30,000 over any 12 month period |
| Non-Resident Businesses | Â CAD 30,000 over any 12 month period |
| Frequency | Filing Deadline | Payment Deadline |
| Monthly | Last day of the following month | Last day of the following month |
| Quarterly | Last day of the month following the quarter | Last day of the month following the quarter |
| Annual | 3 months after the fiscal year-end | 3 months after the fiscal year-end |
| VAT on Cross-Border Electronically Supplied Services | Yes |
| VAT Rate on Digital Services | 5% – 15%, depending on province |
| Threshold for Registration | CAD 30,000 over any 12 month period |
| VAT on B2B Sales | Depends on the province |
Canada applies VAT on digital services based on the consumer’s location, requiring registration and compliance with federal and provincial tax rates.
E-invoicing is not mandatory across Canada, but certain provinces require electronic documentation for public sector transactions. Invoices should include details such as the date, supplier and customer information, description of goods/services, and applicable tax rate.
Canada has digital reporting requirements for certain transactions, with tax data submission required via approved channels depending on the province.
Disclaimer: This guide is for informational purposes only and may not cover all aspects of Canadian VAT. Consult one of our tax professionals for specific guidance regarding your business.
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