GST vs HST for Shopify Sellers: What the Difference Means for Your Store (2026)

GST and HST are not two separate tax systems. HST is the federal GST with a provincial portion stacked on top, charged as a single tax and reported through a single CRA account. For a Canadian Shopify seller, the difference that actually matters is a delivery rule: you charge the rate of the province you ship to, not the rate of the province your store operates from.

One tax, five rates

Five provinces have harmonized their provincial sales tax with the GST, so a single combined rate applies there. Everywhere else, only the 5% federal GST applies. As of 2026, the rates are:

• 5% GST: Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, and the three territories
• 13% HST: Ontario
• 14% HST: Nova Scotia (reduced from 15% on April 1, 2025)
• 15% HST: New Brunswick, Newfoundland and Labrador, Prince Edward Island

One caution on the 5% provinces: British Columbia, Saskatchewan, Manitoba, and Quebec also run their own separate provincial sales taxes (PST, RST, QST). Those are entirely different systems with their own registrations and returns, and they are covered in our Shopify PST guide. This post stays on the GST/HST side.

You charge the customer’s rate, not your own

Under the CRA’s place of supply rules, goods shipped to a customer are taxed in the province where they are delivered. A Vancouver store shipping to Toronto charges 13% HST on that order. An Alberta store shipping to Halifax charges 14%. The same hoodie sold to five customers in five provinces can carry five different tax amounts.

This is the rule new store owners miss most often. Charging your home rate on every order feels natural and is wrong in both directions. Undercharge an Ontario customer at 5% and the CRA will still assess you for the full 13% later, with the 8-point shortfall coming out of your margin plus interest. Overcharge an Alberta customer at 13% and you have an uncompetitive checkout price, and every dollar you collected still has to be remitted.

One registration covers both GST and HST

There is no separate HST registration. Once your worldwide taxable sales pass $30,000 in a single calendar quarter or across four consecutive calendar quarters, you stop being a small supplier and must register for GST/HST within 29 days. That one registration covers every province: you charge 5%, 13%, 14%, or 15% depending on the destination, report it all on one return, and the CRA distributes the provincial portions behind the scenes.

Registering also lets you claim input tax credits, which recover the GST/HST you pay on your own costs, including the tax charged on your Shopify subscription and transaction fees.

Where Shopify fits in, and where it stops

Once your registration is entered, Shopify calculates the correct GST or HST rate at checkout using the customer’s shipping address, and it keeps up with rate changes like Nova Scotia’s 2025 reduction. Stores that had manually overridden their rates kept charging Nova Scotia customers 15% long after the change; automatic calculation avoids that.

What Shopify does not do: it will not tell you that you crossed the $30,000 threshold, it will not register you, and it will not file a return or send a dollar to the CRA. Every cent of tax collected at your checkout lands in your payouts mixed in with revenue, and it is your liability until you remit it. Stores that treat those payouts as income routinely spend the CRA’s money by accident, then face the full bill at filing time. That gap between “Shopify collected it” and “the CRA received it” is where we spend most of our time with e-commerce clients.

Frequently asked questions

Does Shopify remit GST or HST to the CRA for sellers?

No. Your Shopify store is your own sales channel, not a marketplace, so no one collects or remits on your behalf. Shopify calculates the tax at checkout, but registering, filing, and paying the CRA are entirely your responsibility.

Do I need a separate registration for each HST province?

No. A single federal GST/HST registration covers all provinces. You charge the destination province’s rate and report everything on one return. Separate registrations only come into play for PST in BC, Saskatchewan, Manitoba, and for Quebec’s QST.

When does a Shopify store have to start charging GST/HST?

Once taxable sales exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters, you must register within 29 days and start charging. Below that you are a small supplier and charging is optional, though registering early does let you recover the tax you pay on your own expenses.

What rate do I charge customers outside Canada?

Exports are generally zero-rated, meaning you charge 0% GST/HST on orders shipped to the US or overseas but can still claim input tax credits on your costs. Keep proof of export in case the CRA asks.

Related guides

• Shopify GST/HST for Canadian sellers: the full decision tree
• Shopify and provincial sales tax: BC, Saskatchewan, Manitoba, Quebec
• Shopify Tax vs Basic Tax: what the fee buys Canadian stores
• Our GST/HST registration and filing service

Not sure what your store should be charging?

We register, file, and reconcile GST/HST for Shopify sellers across Canada, so the tax sitting in your payouts actually makes it to the CRA. Contact us and we will review your store’s setup before the CRA does.