GST registration for a non-resident business is a different process than the one Canadian companies use. You cannot register through the CRA’s online portal. Instead you file by paper or web form with a dedicated non-resident tax centre, you may have to post a security deposit, and the whole thing takes weeks rather than minutes. Here is how it actually works, and how to plan around it.
Who has to register
You must register for GST/HST if you carry on business in Canada and your worldwide taxable sales pass $30,000 over four consecutive calendar quarters. Whether you are “carrying on business in Canada” depends on the whole picture of your operations: where your orders are solicited, where goods are delivered from, where payment happens, and more. Holding inventory in a Canadian warehouse is one factor the CRA looks at, but it does not settle the question by itself.
Many non-residents register before they are required to. If you import goods into Canada, registration is what lets you recover the GST you pay at the border as input tax credits. For a seller importing a container of stock, that recovery is usually worth far more than the paperwork.
How the registration is filed
Non-residents register with Form RC1 or the CRA’s non-resident registration web form. The file goes to a tax centre that handles non-resident accounts based on where your business is located, and it is reviewed manually. Expect several weeks for the business number and GST/HST account to come back, and longer during peak periods. If you have a shipment date coming, start the registration well before it.
You do not need a Canadian address, a Canadian director, or a Canadian bank account to register. You will need identification for the owners or directors and basic details about what you sell and your expected Canadian sales.
The security deposit
The CRA can require non-residents without a permanent establishment in Canada to post security. The deposit is 50% of your estimated net tax for the first 12 months, whether that number is positive or negative, with a minimum of $5,000 and a maximum of $1,000,000. Cash, certified cheque, or a qualifying bond are accepted.
Most smaller sellers avoid it entirely: no deposit is required if your taxable sales in Canada will be $100,000 or less annually and your net tax will fall between $3,000 remittable and $3,000 refundable. If you are over those lines, a surety bond usually beats tying up cash.
What happens after you are registered
You charge GST/HST on your taxable Canadian sales at the rate of the destination province, file returns on the schedule the CRA assigns, and claim input tax credits for GST/HST you pay on imports and Canadian expenses. Marketplace sales are the exception: where Amazon or a similar platform collects and remits for your orders, those stay out of your net tax, but sales through your own website are yours to handle.
Frequently asked questions
How long does non-resident GST registration take?
Plan on several weeks from filing to receiving your business number, since non-resident files are reviewed manually. It is the single most common scheduling surprise for sellers with inventory already on the water.
Do I need a Canadian bank account?
No. You can operate the account from abroad. A Canadian dollar account simply makes remittances and refunds easier if you have one.
Will I definitely have to post the deposit?
No. Sellers expecting $100,000 or less in annual Canadian sales with net tax inside the plus or minus $3,000 band qualify for the waiver, and that covers a lot of early-stage sellers. Above that, budget for the deposit or a bond.
Amazon already collects tax on my sales. Why would I register?
Two reasons come up constantly: recovering the GST you pay when your goods clear customs, and covering sales that do not run through the marketplace, like your own Shopify store or wholesale orders.
Related guides
- Amazon FBA Canada GST/HST for non-resident sellers
- PST for US and non-resident sellers
- How to file the BSF900 as a non-resident importer
- See how our non-resident GST/HST service works
Want it handled end to end?
We register non-resident sellers for GST/HST, deal with the CRA’s follow-up questions, and file the returns afterward. Get in touch with where you are shipping from and what you sell, and we will map out the timeline for you.