Most Canadian sellers come to Walmart.ca marketplace as a second channel after Amazon. The Walmart marketplace is smaller, the seller tools are different, and the tax handling has its own quirks even though the underlying federal and provincial rules are the same. This guide is the framework we walk every Walmart Canada client through: how the marketplace facilitator rules apply, what Walmart collects on your behalf, what you still have to handle, how Walmart Fulfillment Services Canada (WFS) changes the picture, and the mistakes that cost the most at year-end.
2026 rates and rules throughout. If you also sell on Amazon, the mechanics will look familiar, but the operational differences are real.
The short answer
Walmart Canada is a marketplace facilitator for sales-tax purposes, the same as Amazon Canada. If you are not registered for GST/HST, Walmart collects and remits all applicable sales tax on your Canadian sales itself. Once you register and enter your GST/HST number in Walmart Seller Center, the GST or HST portion is passed through to your seller payout for you to remit to CRA. Walmart continues to collect and remit the provincial PST or QST in BC, Saskatchewan, Manitoba, and Quebec directly to those provinces on your behalf. You should still register for full GST/HST so you can recover input tax credits on Walmart referral fees, WFS Canada fees, advertising spend, freight, and other Canadian-side business costs.
How marketplace facilitator rules apply to Walmart Canada
Canada brought in marketplace facilitator rules for digital platforms federally in July 2021, with provincial expansions in BC, Manitoba, and Saskatchewan, and Quebec’s QST collection rule for marketplaces since 2019. Walmart Canada operates under the same framework as Amazon Canada under those rules: it is a marketplace, not a technology platform, so it is treated as the deemed supplier on third-party seller transactions for tax-collection purposes.
Two things determine who collects and remits what on a given order:
- The destination province of the order.
- Whether you have entered your GST/HST registration number in your Walmart Seller Center tax settings.
Walmart Canada vs Amazon Canada: the same rules, different tools
| Question | Amazon Canada | Walmart Canada |
|---|---|---|
| Marketplace facilitator status | Yes (federal + 4 provinces) | Yes (federal + 4 provinces) |
| Collects GST/HST when seller is registered | Yes, passes through in your disbursement | Yes, passes through in your seller payout |
| Collects + remits GST/HST when seller is not registered | Yes, on your behalf, directly to CRA | Yes, on your behalf, directly to CRA |
| Collects + remits PST or QST in BC, SK, MB, QC | Yes, directly to the province | Yes, directly to the province |
| Fulfillment-side program | Amazon FBA | Walmart Fulfillment Services Canada (WFS Canada) |
| Tax settings dashboard | Seller Central > Settings > Tax Settings | Seller Center > Settings > Taxes |
| Tax line in seller reports | “Marketplace Collected Tax” / “Amazon obligated tax withheld” | “Marketplace Facilitator Tax” / Walmart-collected tax line |
Because the federal and provincial rules apply to both platforms identically, the mental model from our Amazon Canada GST/HST guide transfers directly. The operational pieces (which dashboard, which report, which line item to reconcile) are platform-specific.
What Walmart Canada collects for you, province by province
This is the table sellers actually want. It assumes you are GST/HST registered and have entered your registration number in Walmart Seller Center.
| Province / Territory | Combined rate | GST/HST handling | PST or QST handling |
|---|---|---|---|
| Ontario (HST) | 13% | Walmart collects, passes to you to remit | N/A (rolled into HST) |
| Nova Scotia, NB, PEI, NL (HST) | 15% | Walmart collects, passes to you to remit | N/A (rolled into HST) |
| Alberta, Yukon, NWT, Nunavut | 5% (GST only) | Walmart collects, passes to you to remit | N/A (no PST) |
| British Columbia | 5% + 7% = 12% | Walmart collects GST, passes to you | Walmart collects and remits PST directly to BC |
| Saskatchewan | 5% + 6% = 11% | Walmart collects, passes to you | Walmart collects and remits PST directly to SK |
| Manitoba | 5% + 7% = 12% | Walmart collects, passes to you | Walmart collects and remits RST directly to MB |
| Quebec | 5% + 9.975% = 14.975% | Walmart collects, passes to you | Walmart collects and remits QST directly to Revenu Quebec |
The GST or HST always lands in your seller payout once you are registered. You are the one who files the GST/HST return and remits to CRA. The PST and QST in the four PST/QST provinces are handled by Walmart at the platform level and you do not see or touch them on your own returns.
Worked example: a Walmart Canada seller
Sale shipped to British Columbia, GST/HST registered seller
You sell a product for $100 to a customer in BC. BC combined rate is 12% (5% GST + 7% PST).
GST (5%) …………….. $ 5.00
PST (7%) …………….. $ 7.00
Total tax collected …… $ 12.00
Walmart collects the full $112. The $5 GST flows into your seller payout and you remit it on your next GST/HST return. The $7 PST is handled by Walmart directly with the BC government, so it does not appear in your payout and you do not include it on any return.
If you are not GST/HST registered, Walmart collects the same $12 and remits both the $5 GST to CRA and the $7 PST to BC on your behalf. You do nothing on this order.
Walmart Fulfillment Services Canada (WFS Canada) and tax
WFS Canada is Walmart’s fulfillment-by-Walmart program: you ship your inventory to a Walmart fulfillment centre in Canada, and Walmart picks, packs, and ships orders to customers. The tax mechanics on the sale itself are unchanged (Walmart is the marketplace facilitator either way). If you are a non-resident seller, holding inventory in Canada can be relevant to your registration position, though not as a sole trigger:
Holding inventory in a Canadian fulfillment centre is one of the factors CRA weighs when determining whether a non-resident is carrying on business in Canada. It is not, on its own, an automatic trigger. The full conclusion depends on your overall Canadian footprint: contracts, banking, agents, decisions, and other activity. Even where the position is uncertain, the recommended path is to register for full GST/HST so you can recover input tax credits on Walmart referral fees, WFS Canada fees, advertising, freight, and customs duties. We help non-resident sellers assess their position and handle the registration end-to-end through our Non-Resident GST/HST service.
For Canadian-resident sellers, WFS Canada changes nothing about your registration story: the small supplier threshold is the same, the registration is the same, the GST/HST you remit is the same. The only operational difference is that WFS fees themselves are subject to GST/HST, which becomes recoverable as an input tax credit once you are registered.
How to set up tax in Walmart Seller Center
Once you are GST/HST registered, you must enter your registration number in Walmart Seller Center so the marketplace flips from “collect and remit on your behalf” to “collect and pass through to you.” The mechanics:
- Log in to Walmart Seller Center.
- Go to Settings > Taxes.
- Enter your 15-digit GST/HST registration number from CRA (format
123456789RT0001). - Confirm your registered business legal name and address exactly match what CRA has on file. Mismatches stall the verification.
- Save. Walmart verifies the number with CRA before the tax-handling flip takes effect on new orders.
The change is forward-looking only. Orders shipped before Walmart verifies the number continue to be handled under the marketplace facilitator collection. Walmart does not retroactively pass GST/HST through to you for past orders.
Input tax credits: the reason to register early
Once you are GST/HST registered, you can claim back the GST/HST you paid on Walmart referral fees, WFS Canada fulfillment fees, Walmart Connect advertising spend, software subscriptions, freight forwarding, inventory imports, customs duties, and other Canadian-side business costs.
For most Walmart Canada sellers, the recoverable input tax credits on marketplace fees and WFS Canada fees alone exceed the GST or HST you remit on direct sales for the first few years of operation. Registering puts you in a net refund position. Waiting until CRA requires you to register puts you in a net cost position plus missed ITC recovery on past purchases.
This is the single highest-impact reason for non-resident sellers to register for the full regime rather than waiting. JCCA’s Non-Resident GST/HST service handles the registration, the ongoing filings, the CRA correspondence, and the ITC recovery work end-to-end.
The five mistakes that cost the most
Every one of these comes up in client reviews when sellers expand to Walmart Canada from Amazon or set up Walmart as their first marketplace. None of them are unavoidable. All are caught by a careful Seller Center setup and a clean monthly reconciliation.
- Not entering your GST/HST number in Walmart Seller Center. If you register with CRA but never update Walmart, Walmart keeps collecting and remitting on your behalf indefinitely. You miss out on input tax credits on the Canadian sales tax that would have flowed through to you.
- Double-paying PST that Walmart already remitted. Sellers see PST or QST line items in Walmart reports and assume they need to remit them on their provincial returns. They are already settled by Walmart under marketplace facilitator rules.
- Including marketplace-collected tax on the GST/HST return. The Walmart-collected tax line covers PST or QST that Walmart already remitted to BC, SK, MB, or QC. It is not yours to report as supplies or as remittable tax on a CRA return.
- Skipping the WFS Canada registration assessment for non-residents. If you are non-resident and using WFS, your Canadian footprint may put you in a position where full GST/HST registration is required or strongly recommended. The marketplace facilitator collection does not, by itself, exempt you from your own registration obligations, and registering opens up the input tax credit recovery on Walmart and WFS fees. Get the assessment done before you decide.
- Not reconciling Walmart payouts to your bookkeeping monthly. Walmart settlement reports have multiple line items (referral fee, WFS fee, ad spend, refunds, marketplace-collected tax). Each one needs to land in the right account. Sloppy reconciliation produces wrong COGS, wrong gross margin, and wrong GST/HST returns.
Frequently asked questions
Does Walmart Canada collect GST/HST on my marketplace sales?
Yes. Walmart Canada is a marketplace facilitator under both federal and provincial sales-tax rules. If you are not GST/HST registered, Walmart collects and remits all applicable Canadian sales tax on your behalf. Once you register and enter your number in Walmart Seller Center, the GST/HST portion is passed through to you in your seller payout for you to remit to CRA. Walmart continues to collect and remit PST or QST directly to BC, SK, MB, and QC.
Do I need a GST/HST number to sell on Walmart Canada marketplace?
Not until your worldwide taxable sales pass $30,000 CAD in any rolling 12-month period. Below that threshold you are a “small supplier” and Walmart handles all the sales tax on your behalf. Once you cross the threshold, registration becomes mandatory within 29 days. We recommend registering earlier than required so you can recover the input tax credits on Walmart fees, WFS fees, and advertising.
How do I enter my GST/HST number in Walmart Seller Center?
Settings, Taxes. Enter the 15-digit registration number from CRA. Confirm your business name and address match CRA. Save. Walmart verifies with CRA and the new tax handling kicks in for new orders after verification.
What about WFS Canada: does using Walmart fulfillment change my tax obligations?
For Canadian-resident sellers, WFS Canada changes nothing about your sales-tax registration or filing obligations. For non-resident sellers, holding inventory in WFS Canada is one of the factors CRA considers when assessing whether you are carrying on business in Canada. It is not the sole trigger. The full picture depends on your overall Canadian footprint, and the practical recommendation in most cases is to register for full GST/HST so you can recover the input tax credits on Walmart fees, WFS fees, advertising, and freight. We help non-resident sellers assess their position and handle the registration.
What is the “Marketplace Facilitator Tax” line in my Walmart payout report?
It is the PST or QST Walmart already collected and remitted directly to BC, Saskatchewan, Manitoba, or Quebec under provincial marketplace facilitator rules. It is not yours to report or remit on a provincial return.
Can I claim back GST/HST on Walmart referral fees and WFS Canada fees?
Yes, once you are GST/HST registered. The GST or HST charged by Walmart on its referral fees, WFS Canada fulfillment fees, and Walmart Connect advertising is recoverable as an input tax credit on your GST/HST return. For most Walmart sellers these ITCs exceed the GST collected on direct sales in the early years, putting the seller in a net refund position.
I sell on both Amazon and Walmart. Are the tax rules different?
The underlying federal and provincial rules are identical. Both platforms operate as marketplace facilitators. The differences are operational: the dashboards, the report formats, and the names of the tax line items. Your GST/HST return aggregates the Canadian sales from both channels using the same line 105 calculation, less your input tax credits from both platforms’ fees.
What if my Walmart payout shows tax I did not expect?
Most cases trace back to one of three things: your GST/HST number was not entered (or not yet verified) in Seller Center, a product was misclassified for tax (zero-rated or exempt categories), or the destination province changed the tax mix. Walmart support can confirm verification status; tax classification fixes through the product catalog; destination is the customer’s shipping address on the order.
Want us to handle Walmart Canada tax setup for you?
Walmart Canada sales tax is one of the parts of multi-channel e-commerce bookkeeping that goes from “small annoyance” to “wrong GST/HST return” quickly if the Seller Center setup is wrong or the monthly reconciliation slips. We do the full setup for our e-commerce bookkeeping clients: the GST/HST registration, the Walmart Seller Center tax configuration, the ongoing payout reconciliation, and the monthly returns. For non-resident sellers using WFS Canada we also handle the full non-resident registration and the CBSA Record Custody side through our Non-Resident GST/HST and CBSA Record Custody services.
Get in touch with a short note about your monthly Walmart volume, whether you also sell on Amazon or Shopify, and whether you are using WFS Canada. We respond within one business day with a fixed-fee quote. Full pricing on the pricing page.
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