By Sharad Gondaliya, CPA
Foreign founders often expect the non-resident GST/HST rules to apply to them. They usually do not. Once you incorporate in Ontario, BC or federally, your corporation is resident in Canada for GST/HST, even if every owner and director lives abroad. That makes registration simpler and removes the security deposit non-residents can face.
Why your corporation is a resident for GST/HST
The Excise Tax Act treats a corporation incorporated or continued in Canada as resident in Canada. CRA’s security requirement for non-resident registrants does not apply. Your corporation registers like any other Canadian business.
Do you have to register?
Registration is required once taxable sales pass $30,000 in a single calendar quarter or over the last four consecutive quarters. Below that, a business is a small supplier and may choose to register.
There is a catch for subsidiaries. The $30,000 test counts the worldwide taxable sales of associated companies, including a foreign parent. A Canadian subsidiary of an established foreign group usually must register from day one.
Many new corporations register voluntarily anyway, so they can recover GST/HST paid on setup costs and imports. A voluntary registrant must stay registered for at least one year.
Which rate to charge
GST/HST follows the customer’s province, not yours. An Ontario corporation selling to a customer in Alberta charges 5% GST, not 13% HST.
| Customer’s province | Rate charged |
|---|---|
| Ontario | 13% HST |
| British Columbia | 5% GST (PST is separate) |
| Alberta | 5% GST |
| Quebec | 5% GST (QST is separate) |
| Nova Scotia | 14% HST |
| New Brunswick | 15% HST |
Provincial sales taxes in BC, Saskatchewan, Manitoba and Quebec have their own registration rules. For example, BC PST registration applies to sellers outside BC once their BC sales pass $10,000.
Sales to customers outside Canada
Goods exported from Canada are generally zero-rated. Many services supplied to non-residents, including a foreign parent, are also zero-rated, with exceptions for things such as services relating to Canadian real property. Zero-rated sales carry no GST/HST, but the corporation can still claim input tax credits on its costs.
Input tax credits on imports
When your corporation imports goods, it pays GST at the border through CBSA. A registered corporation can claim that GST back as an input tax credit on its return. This is one reason importers register early.
Filing frequency and due dates
| Annual taxable sales | Filing frequency | Return due |
|---|---|---|
| $1,500,000 or less | Annual (monthly or quarterly by choice) | 3 months after the fiscal year-end |
| More than $1,500,000 up to $6,000,000 | Quarterly | 1 month after the quarter ends |
| More than $6,000,000 | Monthly | 1 month after the month ends |
Annual filers whose net tax is $3,000 or more must also pay quarterly instalments.
Director liability
Directors can be personally liable for GST/HST the corporation collects but does not remit. Please read our guide to director liability for non-resident directors before your first return.
How we help
We register all CRA accounts, including GST/HST, without a SIN or a visit to Canada. We then file your returns, claim your input tax credits and keep your remittances on schedule. Related reading: common tax and accounting mistakes non-resident business owners make.
FAQs
Can my corporation register for GST/HST before it has sales?
Yes. Voluntary registration is allowed and is common for importers and companies with large setup costs.
Does a Canadian subsidiary charge GST/HST to its foreign parent?
Often not. Many services supplied to a non-resident are zero-rated, but exceptions apply. Please check each type of service.
Do I need a separate registration for each province?
No for GST/HST: one registration covers Canada. Provincial sales taxes in BC, Saskatchewan, Manitoba and Quebec need their own registrations when their rules apply.
Speak with a CPA
Please book a free consultation at gondaliyacpa.ca/consultation. We are a 2026 Xero Awarded Firm with 1300+ five-star Google reviews, and we work on AFFORDABLE flat-fee annual packages.
Sharad Gondaliya is a CPA Canada & CPA USA with 15 Years+ experience of Accounting, Tax, Payroll of Corporate Small Businesses as Tax Accountant. He is a CPA Ontario member (61040184) and holds US CPA licences in Washington and Montana and is well known among corporate small businesses for tax planning, efficient tax solutions, and affordable CPA services. Sharad is the Principal (Director) of Gondaliya CPA – Affordable CPA Firm in Canada. Licenses: CPA Ontario: 61040184 | CPA USA (MT): PAC-CPAP-LIC-033176 | CPA USA (WA): 57629 | CPA Firm License: 61330051 View Full Author Bio