Selling consulting, design, or development services to clients outside Canada often means zero-rated treatment — but the specifics depend on where your client is and what the service involves.
Last updated: June 2026
Many services supplied to a recipient who is not resident in Canada are zero-rated — meaning you charge 0% GST/HST, but unlike an exempt supply, you can still claim Input Tax Credits on costs related to providing that service. This is Canada’s equivalent of "export" treatment for services.
Zero-rating for exported services doesn’t apply universally. Services connected with real property located in Canada, services rendered in connection with litigation before a Canadian court or tribunal, and certain other specific categories generally remain subject to standard GST/HST rules regardless of where your client is based. Advisory services around a Canadian property transaction, for instance, may not qualify for zero-rating even if the client themselves is non-resident.
Yes. Zero-rated supplies still count as part of your taxable revenue for the purpose of the CA$30,000 registration threshold, even though you charge 0% tax on them — they remain taxable supplies for turnover purposes, just taxed at a nil rate.
Often not, if the service qualifies for zero-rating as an export of services — but specific exceptions (property-related, litigation-related services) can mean standard rules still apply.
Yes, zero-rated supplies still count as part of your taxable revenue for threshold purposes, even though no tax is actually charged on them.
Zero-rated supplies (like most exports) let you still claim Input Tax Credits on related costs. Exempt supplies (like most residential rent) generally don’t allow ITC claims on related costs — a meaningful practical difference.
Documentation supporting that your client is genuinely non-resident and the service doesn’t fall into an excluded category — keep this in case of a CRA review.
No, goods follow separate export rules under Canada’s customs and GST/HST framework — this zero-rating discussion is specific to services.
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