Reaching sales tax nexus in Canada can happen more quickly than you think. Canada determines nexus based on your total global sales, not just sales within its borders.
If your total revenue from all markets exceeds $30,000 CAD, you’ve technically reached nexus in Canada.
When Do You Need to Take Action?
No sales in Canada?
No action is required. Even if your global sales exceed $30,000 CAD, you only have tax obligations if you make at least one sale in Canada.
Selling in Canada?
If you have any sales in Canada and your total global sales exceed $30,000 CAD, you may be required to register for a Canadian GST/HST account.
What to Do if You Sell in Canada and Have Nexus
If you've met the nexus threshold and have transactions in Canada, you may need to:
Register for a GST/HST Account – Businesses that meet the threshold and sell in Canada typically need to register with the Canada Revenue Agency (CRA).
Collect and Remit Sales Tax – Once registered, you must charge and remit Goods and Services Tax (GST) or Harmonized Sales Tax (HST), depending on the province.
File Regular Tax Returns – Businesses must file periodic GST/HST returns based on their reporting schedule.
To learn more about different types of sales tax in Canada, click here: Overview of the Canadian Sales Tax: GST, PST, and HST Explained
Getting started is easy! Simply click the “Register” button in your Nexus report to begin the registration process quickly and seamlessly.
Exceptions May Apply
There are certain situations where registration may not be required, even if you meet the sales threshold and sell in Canada. The CRA provides detailed guidance on what it means to be “carrying on business in Canada.”
We recommend reviewing CRA’s official guidance and consulting with a qualified tax professional to determine your specific obligations.
Key Takeaways
Canada counts all global sales toward the $30,000 CAD threshold.
You only need to act if you sell in Canada.
Registration, tax collection, and remittance may be required, but there are exceptions.
Confirm with the CRA or a tax expert before registering.
By keeping an eye on your total sales and Canadian transactions, you can stay compliant and avoid unexpected tax obligations.
Need help? Contact us via the chat bubble at the bottom right corner or email success@trykintsugi.com.