VAT checker Country guides Invoice generator Reverse VAT VAT validator Deadlines
Updated June 2026

GST/HST on Digital Products Sold to Canadian Customers

Digital products follow the same CA$30,000 threshold as any other business for Canadian sellers — but non-resident sellers face a simplified registration regime with no threshold exemption.

Last updated: June 2026

Canadian sellers
Standard CA$30,000 threshold
same as any business
Non-resident digital sellers
Simplified GST/HST registration
required once selling to Canadian consumers
Rate charged
Based on customer’s province
GST or applicable HST rate

Canadian businesses selling digital products

If you’re a Canada-based business selling ebooks, software, apps, or online courses to Canadian consumers, standard GST/HST rules apply: once your taxable revenue exceeds CA$30,000, you charge GST or HST based on your customer’s province. Below the threshold, no tax is charged unless you’ve registered voluntarily.

Non-resident digital sellers: the simplified registration regime

Since 2021, Canada requires non-resident businesses selling digital products and services to Canadian consumers to register under a simplified GST/HST framework, generally without the CA$30,000 small supplier exemption applying in the same way — non-resident digital suppliers must register once specified revenue thresholds to Canadian consumers are met, which are assessed similarly around CA$30,000 but under the specific non-resident rules.

This affects streaming, SaaS, ebook platforms, and online course providers based outside Canada selling to Canadian consumers, who must charge the appropriate GST/HST rate based on where the consumer is located.

Selling digital products to Canadian businesses (B2B)

If your customer is a GST/HST-registered Canadian business providing a valid business number, the sale may be treated differently than a consumer sale, with the business self-assessing tax in certain circumstances — always obtain and verify business registration status before treating a sale as B2B.

Frequently asked questions

Do I need to register if I’m based outside Canada?

Yes, if your sales of digital products to Canadian consumers meet the relevant threshold under the simplified non-resident registration regime, regardless of where your business is based.

What GST/HST rate do I charge?

The rate depends on your customer’s province — GST only (5%) in some provinces, or the applicable HST rate (up to 15%) in HST-participating provinces like Ontario, Nova Scotia, and others.

Does the platform (Gumroad, Teachable, app stores) handle GST/HST for me?

Often yes for larger marketplaces, which may act as the registered supplier under Canada’s digital platform rules. Check your specific platform’s terms and tax documentation.

Do I charge tax on sales to Canadian businesses?

If the business provides a valid GST/HST registration number, the sale may be treated as B2B — verify their status before applying this treatment rather than assuming.

Is there a different threshold for non-resident sellers vs Canadian sellers?

The specific registration mechanics differ (simplified vs standard registration), but both are assessed against thresholds in the same general range — check current CRA guidance for exact figures as these can be updated.

Not sure if your Canadian sales have crossed the threshold?

Enter your revenue and get a plain-English answer in seconds.

Check my GST/HST status →
General guidance only. Digital services GST/HST rules for non-resident sellers are specific and can change. Always verify with the CRA or consult a qualified accountant before making decisions.

Related tools & reading