If you own a Shopify store based in Canada, you’ll need to understand when to charge Federal and Provincial taxes.
The simplest rule for when to charge Canadian sales tax or not is whether your Shopify store is GST/HST registered.
Many businesses in Canada start as unregistered and the state classifies them as a small supplier. Canadian businesses are required to register for a GST/HST number when they surpass a minimum threshold of CAD $30,000 within a calendar quarter.
Let’s dive in and figure out all the tax rules that apply to Shopify stores operating out of the Great White North.