Canada GST/HST for Non-Resident SaaS: Simplified Registration Walkthrough

Since 1 July 2021, non-resident SaaS companies selling to Canadian consumers have been required to register for GST/HST once they cross C$30,000 in sales. Canada built a simplified registration regime specifically for this — lighter-touch than the normal GST/HST, output-only, and accessible to vendors with no Canadian presence. This walkthrough covers the regime end-to-end: the threshold test, rates by province, the CRA portal, and the provincial taxes that still need separate handling.

Which regime applies to SaaS?

Canada's indirect tax landscape has several layers. For non-resident SaaS vendors, the relevant federal regime is the simplified GST/HST for digital economy businesses under Division 4.7 of Part IX of the Excise Tax Act (introduced by Bill C-30). It applies to:

• Cross-border digital supplies made to Canadian consumers not registered for GST/HST.
• Non-resident vendors who do not make taxable supplies in the ordinary course in Canada (i.e., no fixed place of business).

If the Canadian customer is GST/HST registered, the transaction is zero-rated for the non-resident vendor under the usual rules and no tax is collected by the foreign vendor — the Canadian customer handles it.

The C$30,000 threshold

Registration becomes mandatory when total taxable supplies to Canadian consumers exceed C$30,000 in any 12-month rolling period. The threshold is calculated on supplies where tax would have been collected if registered — not gross revenue or global revenue.

Vendors below the threshold may register voluntarily. Voluntary registration is often sensible for vendors approaching the threshold or for those wanting to issue GST/HST invoices that Canadian business customers can present to the CRA for credit.

GST/HST rates by province

Canada's combined federal/provincial rate varies by province, because several provinces harmonise their sales tax with the federal GST (creating HST) while others apply separate provincial sales taxes.

Step 1: Apply for simplified GST/HST registration

Applications are filed through the CRA's online portal at canada.ca/register-digital-economy-gst-hst. You do not need a Canadian business number for simplified registration; the CRA issues a digital-economy-specific identifier.

Information required:

• Legal name of the non-resident vendor and country of incorporation
• Foreign tax ID (e.g., US EIN, UK VAT number)
• Expected annual Canadian revenue
• Principal business activity
• Contact details for the authorised person

Approval typically takes two to four weeks.

Step 2: Determine the customer's location

Canada, like the EU, requires at least two pieces of non-contradictory location evidence. Acceptable evidence includes:

• Billing address
• IP address of the device
• Payment method (card BIN, bank account country)
• Phone number country code (landline or SIM)
• Shipping address (for tangible related supplies)

The province determines the rate. If the customer's two pieces of evidence point to Ontario, you charge 13% HST; if they point to Alberta, you charge 5% GST.

Step 3: Invoice requirements

Non-resident vendors under the simplified regime must issue invoices showing:

• The vendor's legal name and simplified GST/HST number
• Customer name and address
• Date of issue
• Description of the supply
• Rate and amount of GST/HST
• Total amount payable

Invoices can be issued in any currency; the tax amount must be converted to CAD using a reasonable method (Bank of Canada noon rate on the invoice date is standard) for return purposes.

Step 4: Filing and payment

Filing is quarterly under the simplified regime. Returns are due one month after the end of the calendar quarter (e.g., Q1 return due 30 April). Payment is due on the same day.

Returns are filed via the CRA portal and must be completed in CAD. Payment can be made by Canadian bank transfer, international wire, or pre-authorised debit. The CRA publishes a reference number per return — quote it on the payment.

Provincial sales tax registrations you should also consider

1. British Columbia PST. Threshold: C$10,000 of sales to BC consumers. Rate: 7%. Register with the BC Ministry of Finance via eTaxBC.
2. Saskatchewan PST. Zero threshold. Rate: 6%. Register with the Saskatchewan Ministry of Finance.
3. Manitoba RST. Threshold: C$10,000. Rate: 7%. Register with the Manitoba Taxation Division.
4. Quebec QST. Threshold: C$30,000 of taxable supplies to Quebec consumers. Rate: 9.975%. Register with Revenu Québec, often alongside the federal GST/HST.

Common mistakes

1. Assuming HST covers PST provinces. The simplified GST/HST regime does not replace BC PST, SK PST, MB RST, or QST.
2. Applying the wrong rate. Use the customer's province, not the vendor's country or the customer's IP alone. Validate with two pieces of evidence.
3. Missing the threshold trigger. The C$30k test is rolling 12 months, not a calendar year. Track continuously.
4. Treating Canadian businesses as B2C. If the customer provides a GST/HST number, you should not charge under the simplified regime. Validate the number with the CRA's GST/HST Registry.

Frequently asked questions

What is the Canada GST/HST threshold for non-resident SaaS?

C$30,000 in any 12-month rolling period, calculated on taxable supplies to Canadian consumers.

Do I have to register for PST in every province?

British Columbia, Saskatchewan, Manitoba, and Quebec each operate their own regimes. The federal simplified GST/HST does not cover them; separate registrations are required.

Can I claim input tax credits under simplified GST/HST?

No. The simplified regime is output-only. Non-residents who need input tax credits register under the normal GST/HST regime (which requires a Canadian business number and full compliance).

How often do I file returns?

Quarterly, due one month after the end of the calendar quarter.