Do You Charge Tax on Shopify Canada?

As a business owner, it’s important to know whether or not you need to charge tax on the products or services you’re selling. In Canada, the rules around taxation are different from province to province. For example, in Ontario, the provincial sales tax (PST) is 8%, while in British Columbia, it is 7%.

If you’re selling products online through a platform like Shopify, it’s important to be aware of the different tax rules in each province. Depending on where your customers are located, you may need to charge provincial sales tax (PST), harmonized sales tax (HST), or goods and services tax (GST).

Here’s a breakdown of the different taxes that may apply to your Shopify store in Canada:

• Provincial sales tax (PST): This is a consumption tax levied by the provinces.

  In Quebec, this is called the Quebec Sales Tax (QST).

• Harmonized sales tax (HST): This is a value-added tax that combines the GST with PST. It is used in provinces where the GST and PST are combined.
• Goods and services tax (GST): This is a federal consumption tax that applies to most goods and services in Canada.

As a general rule, you’ll need to charge GST/HST on all orders shipped to addresses within Canada. You may also need to charge PST on orders shipped to certain provinces. To find out if you need to charge PST on orders shipped to a specific province, you can use Shopify’s provincial sales tax lookup tool.

In conclusion, whether or not you need to charge taxes on Shopify Canada depends on the province your customer is located in. You may need to charge provincial sales tax (PST), harmonized sales tax (HST), or goods and services tax (GST). To find out if you need to charge PST on orders shipped to a specific province, you can use Shopify’s provincial sales tax lookup tool.