Canadian taxes

Note

This guide is for stores that sell in Canada. It's your responsibility to consult with local tax authorities or a tax professional to verify that you charge your customers the correct tax rates, and to ensure that you file and remit your taxes correctly.

Note

From December 14, 2024 to February 15, 2025, goods ordered and fulfilled from certain categories will have a tax rate of zero if they have the appropriate product category assigned. In order to have holiday tax rates applied automatically, your store must use the Basic Tax service. If you need to update your tax calculation service for Canada, then contact Shopify support.

To help prepare your store, refer to our guide and checklist for the Canadian Holiday Tax Break. For a full list of inclusions and restrictions, refer to the government of Canada's announcement.

As of January 2019, the method for setting up Canadian taxes has changed. If you see a message to update your Canadian tax settings on your Taxes and duties page, then you can update to the new way:

• If you're new to Shopify, then refer to Setting up Canadian taxes.
• If you already use Shopify, then refer to Basic Tax service in Canada.

When you determine what sales taxes you need to charge in Canada, you can set your Shopify store to automatically manage the tax rates you charge to your customers. You can set up tax overrides for products that have special tax rates.

Shopify helps to simplify the procedures for charging sales taxes, but doesn't remit or file your taxes for you. Shopify support is able to help you make sure that you have the right settings for your business, after you've determined where you're responsible for charging taxes. It's your responsibility to check with the Canadian and provincial tax agencies or a tax professional to make sure that you charge your customers the correct sales tax rates, and to make sure you file and remit your taxes correctly.

For a summary of Canadian tax rules, refer to Canadian taxes reference.

In this section

• Setting up Canadian taxes

• Basic Tax service in Canada

• Review your Canada tax liabilities

• Manage your Canadian taxes

• Setting Canadian tax exemptions

• Canadian taxes reference