VAT Atlas · entry № 33 · current as of April 2026
🇨🇦
Canada
Non-EU · Canadian dollar · code CAStandard VAT rate, reduced categories, registration thresholds, and e-invoicing rules for Canada.
Standard rate
5%
HST (NB, NL, PE) 15% Harmonized Sales Tax in New Brunswick, Newfoundland, Prince Edward Island
HST (Nova Scotia) 14% Harmonized Sales Tax in Nova Scotia (from April 2025)
HST (Ontario) 13% Harmonized Sales Tax in Ontario
Zero-rated 0% basic groceries, prescription drugs, medical devices, exports
Threshold 30 000 CAD CA$30,000 over 4 consecutive quarters
Filing Annually, quarterly, or monthly
§ Invoicing rules what you need to know
Tax authority Canada Revenue Agency (CRA)
Invoice language English or French
Reverse charge Canada does not have a formal reverse charge mechanism for GST/HST. Non-resident suppliers of digital services must register and charge GST/HST directly since July 2021.
Digital services Non-resident providers of digital services and platform-based accommodations must register for GST/HST and collect tax on B2C supplies to Canadian consumers (since July 2021). Provincial PST/QST may also apply.
Penalties Late GST/HST filing incurs a penalty of 1% of the balance owing plus 0.25% per month of delay (max 12 months). Late payment triggers compound daily interest at the prescribed rate.
Invoice requirements
- Invoice must show seller’s GST/HST registration number (BN)
- Buyer’s name and payment terms should be included
- Invoice must include date, description of goods/services, and total amount
- GST/HST amount must be shown separately or the total stated as tax-included
- Records must be kept for 6 years from the end of the tax year
Frequently Asked Questions
What is the standard VAT rate in Canada?
The standard VAT rate in Canada is 5%.
What are the reduced VAT rates in Canada?
15% (HST (NB, NL, PE)): applies to Harmonized Sales Tax in New Brunswick, Newfoundland, Prince Edward Island. 14% (HST (Nova Scotia)): applies to Harmonized Sales Tax in Nova Scotia (from April 2025). 13% (HST (Ontario)): applies to Harmonized Sales Tax in Ontario.
What is the VAT registration threshold in Canada?
The VAT registration threshold in Canada is 30 000 CAD. CA$30,000 over 4 consecutive quarters
§ More countries Browse all 35 countries →