GST/HST for US Ecommerce Brands Selling in Canada: What Changes in 2026?

For most US ecommerce brands, the big GST/HST story in 2026 is not a brand-new tax regime. The real issue is applying the current Canada Revenue Agency framework correctly: non-resident registration rules, digital-economy rules that already apply to certain cross-border sales models, current province-based tax rates, and the filing rules that now require electronic filing for most GST/HST registrants.

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That matters because many US sellers still treat Canada tax as something to clean up later. In reality, GST/HST touches pricing, marketplace structure, fulfillment design, importer setup, and margin. If your business sells into Canada through Amazon, a DTC site, or other marketplaces, tax planning should be part of launch planning, not a post-launch fix.

What Actually Changed in 2026?

For physical-goods sellers, 2026 is more about current application than a newly created tax system. The underlying digital-economy measures have been in effect since July 1, 2021. What matters now is operating with the current CRA guidance, the latest province-rate map, and the current non-resident registration workflow. CRA’s non-resident registration page was updated on February 23, 2026 and says businesses can use the non-resident online form to register for a Business Number and GST/HST, including digital economy.

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That same CRA registration page also says that if you cannot register online and use the paper form route, the paper RC1 process supports GST/HST for digital economy under the normal regime only, and not the simplified digital-economy regime. That distinction is important for non-resident sellers trying to understand which registration path actually applies to their business model.

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When a US Brand Has to Register for GST/HST

Under CRA’s general rules, you have to register for a GST/HST account if you are not a small supplier and you make taxable sales, leases, or other supplies in Canada. For most businesses, the small-supplier threshold is based on worldwide taxable revenues of C$30,000 or less in any single calendar quarter and over the last four consecutive calendar quarters.

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For non-residents, one of the most important questions is whether you are considered to be carrying on business in Canada. CRA says that phrase is not defined in the Act and must be determined based on all relevant facts. CRA also states that every non-resident person who carries on business in Canada, other than a small supplier, must register for GST/HST if it makes a taxable supply in Canada.

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When a US Brand May Not Be Collecting GST/HST Itself

CRA also says that if a non-resident does not carry on business in Canada and has not registered voluntarily, supplies made in Canada by that non-resident are deemed to be made outside Canada, so the non-resident is generally not required to collect GST/HST on those supplies. That does not mean tax disappears. CRA notes that tax may still apply on the taxable importation of goods, and Canadian residents may have self-assessment obligations on some imported services or intangible personal property.

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This is why many US brands misread the issue. The question is not only “Do I have a Canadian company?” The more important questions are: Where are the goods? Who is importing them? Who is making the supply? Who is collecting the tax? And does the marketplace model place you under a specific GST/HST rule set?

Why Marketplace and Amazon Sellers Need Extra Attention

CRA’s digital-economy rules have applied since July 1, 2021 and they matter for non-resident ecommerce sellers. CRA says the rules can apply to non-resident vendors or platform operators dealing in qualifying goods, including goods delivered or made available in Canada, such as goods located in a fulfillment warehouse or shipped to a purchaser in Canada under certain circumstances.

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For sellers of qualifying goods, the normal GST/HST regime applies. CRA specifically says the simplified GST/HST regime is available for cross-border digital products and services and platform-based short-term accommodation, but for the supply of qualifying goods, you may be required to register under the normal GST/HST regime and the simplified GST/HST is not available.

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CRA also says that if a non-registered vendor sells qualifying goods through a distribution platform, the platform operator is required to charge and collect GST/HST on the final sale price for those goods. By contrast, a vendor that is registered under the normal regime is required to charge and collect GST/HST on its own supplies of qualifying goods, including supplies facilitated by a platform.

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The 2026 GST/HST Rate Map US Brands Need to Use

CRA says the place-of-supply rules for qualifying goods follow the normal GST/HST place-of-supply rules, and a supply is generally made in a province if the goods are delivered or made available to the purchaser in that province. CRA’s current rate table shows 5% GST in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon; 13% HST in Ontario; 14% HST in Nova Scotia; and 15% HST in New Brunswick, Newfoundland and Labrador, and Prince Edward Island.

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One rate detail that does affect 2026 planning is Nova Scotia. CRA states that on April 1, 2025, the provincial portion of the HST in Nova Scotia decreased, resulting in a 14% HST rate. That means brands using outdated province tables can still overcharge or misprice if their systems were not updated after that change.

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How Import GST/HST Fits Into the Picture

CRA says imported goods are subject to GST or the federal part of the HST, except for non-taxable importations, and that the owner or importer of record is responsible for paying the GST/HST on imported goods. CRA also states that if you are registered for GST/HST and you are the importer, you may claim input tax credits to recover the tax paid on imported goods, as long as the normal ITC requirements are met.

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That is a major planning point for US brands moving inventory into Canada. A seller that only thinks about output tax on the sale may miss the cash-flow and recovery impact of tax paid at importation. This is one reason why tax setup, importer structure, and fulfillment strategy should be reviewed together.

Filing, Currency, and Administration in 2026

CRA says non-residents must complete GST/HST returns in Canadian dollars. CRA also states that the old C$1.5 million threshold for mandatory electronic filing was removed for reporting periods beginning on or after January 1, 2024, which means electronic filing is now required for all GST/HST registrants except selected listed financial institutions and most charities.

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Operationally, that means a Canada launch should include not only registration, but also return-preparation ownership, transaction data quality, marketplace tax logic, and documentation standards that will hold up after launch.

A Practical 2026 Checklist for US Ecommerce Brands

Before you scale sales into Canada, confirm six points: whether CRA would likely view you as carrying on business in Canada; whether you crossed a registration threshold; whether your sales model falls under the normal non-resident rules or the digital-economy rules for qualifying goods; whether you or the platform is collecting tax; which province rate applies based on delivery; and whether you should register early to recover GST/HST on eligible imported or operating costs.

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For most brands, the biggest tax mistake is assuming GST/HST starts only after a Canadian entity is formed. CRA’s framework focuses on facts such as taxable supplies, registration status, place of supply, qualifying goods, and whether the non-resident is carrying on business in Canada. That is why tax readiness should be built into the market-entry model from the beginning.

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How 31 Logistics Helps

31 Logistics helps brands connect marketplace expansion with cross-border operations, compliance planning, and execution. That gives US ecommerce businesses a more practical path into Canada: not just getting listings live, but aligning tax exposure, inventory movement, platform setup, and profitability before mistakes become expensive.

Planning to sell into Canada?
31 Logistics supports US brands with marketplace execution, cross-border coordination, and compliance-aware operational planning so your Canada expansion is built to scale cleanly.

FAQ

Do US brands need a Canadian company to register for GST/HST?

Not necessarily. CRA’s framework turns on the facts of your activities, including whether you are carrying on business in Canada, whether you make taxable supplies in Canada, and whether digital-economy rules for qualifying goods apply.

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What is the biggest GST/HST change to watch in 2026?

For most physical-goods sellers, the main issue is not a brand-new 2026 law. It is using the current rule set correctly: the post-July 1, 2021 digital-economy framework, today’s province-based rates, the Nova Scotia 14% rate, and the current CRA registration and filing process.

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If my inventory is stored in Canada, can I use simplified GST/HST registration?

Usually not for qualifying goods. CRA says the supply of qualifying goods is under the normal GST/HST regime and that the simplified GST/HST is not available for that category.

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Who collects GST/HST on marketplace sales?

CRA says a distribution platform operator must collect GST/HST on qualifying goods sold through the platform by vendors who are not registered, while a vendor registered under the normal regime must collect GST/HST on its own qualifying-goods supplies, including those facilitated by a platform.

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Can a registered importer recover GST/HST paid at import?

CRA says a GST/HST registrant that is the importer may generally claim input tax credits for GST/HST paid on imported goods, provided the usual ITC conditions are met.

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