Do I Charge GST/HST to US Customers as a Canadian Business?
Short answer: Usually no. As of 2026, a Canadian business does not charge GST/HST to US customers on goods it ships to a US address or on most services supplied to a US client. These sales are zero-rated, so the tax rate is 0%. You still report them, and you can still claim input tax credits.
A zero-rated supply is a taxable sale with a GST/HST rate of 0%. The Canada Revenue Agency (CRA) treats exports this way so that Canadian tax is not added to goods and services used outside Canada. The rules are the same for the United States as for any other country. Each rule has conditions, and the proof is yours to keep. For the basics, see zero-rated and exempt supplies.
Do I charge GST/HST when I ship goods to a customer in the US?
No, as long as you send the goods out of Canada yourself. Under the CRA's memorandum on exports of goods, a sale of goods is zero-rated when the supplier does one of these:
Ships the goods to a destination outside Canada that is named in the contract for carriage.
Hands the goods to a common carrier or consignee that the supplier hired, on the customer's behalf, to ship them outside Canada.
Sends the goods by mail or courier to an address outside Canada.
This rule looks at where you send the goods, not at who the buyer is. Keep proof that the goods left Canada. For mail and courier shipments, the CRA accepts a receipt from the company that shipped the goods.
Do I charge GST/HST on services for a US client?
Usually no. Under the CRA's memorandum on exports of services and intangible property, a service supplied to a non-resident is zero-rated unless a listed exclusion applies. Some services have their own rule.
Service for a US client | GST/HST | Main condition |
Most services done from Canada | 0% | None of the exclusions in the next section applies |
Advisory, consulting or professional services | 0% | Not about real property or goods in Canada, not acting as agent, not court work for an individual once litigation in Canada has started |
Advertising services | 0% | The client is not registered for GST/HST under the regular rules |
Technical or customer support by phone, email or chat | 0% | The client is not registered for GST/HST under the regular rules and is not a consumer of the service |
The client must be a non-resident. A US address on the invoice is not enough by itself (see the proof section below).
When do I still have to charge GST/HST to US customers?
You charge GST/HST when the supply is really used in Canada. The main cases in the CRA memoranda are:
An individual in Canada. The customer is an individual who is in Canada when dealing with you about the supply, or the service is carried out for an individual while that person is in Canada.
Real property in Canada. Construction, maintenance, architecture, property management and real estate services for land or buildings in Canada.
Goods in Canada. Services such as repair or storage of goods that are in Canada when the work is done. There is an exception for goods brought into Canada only for the service and exported right after.
Acting as an agent. Acting as the client's agent, or arranging or soliciting orders for the client, unless the order itself is zero-rated or made outside Canada.
Transportation, postal and telecommunication services. These follow their own rules.
Goods delivered in Canada. If you deliver the goods to an address in Canada, charge the rate for that province. See which rate to charge in another province.
The CRA states that it is the supplier's job to decide whether a supply is zero-rated and to keep the evidence. If you zero-rate a sale in error, the CRA may assess you for the tax you did not collect.
Do I charge GST/HST on software, subscriptions and digital products?
Usually no, when the US customer is not registered for GST/HST under the regular rules. The CRA lists website subscriptions, digital content delivered to subscribers, and downloaded music, images and books as intangible property that can be zero-rated. Licences of patents, trademarks, copyrights and other intellectual property are covered too.
The supply is not zero-rated when:
the customer is an individual who is in Canada at the time of the supply
it relates to real property in Canada, to goods ordinarily in Canada, or to a service supplied in Canada that is not itself zero-rated
it can only be used in Canada
For online sales, the CRA will generally accept the customer's online declaration that they are not a resident of Canada and not registered, with their full home address. The declaration must be backed by a second check, such as matching the billing address or using geo-location software.
What proof do I need that my customer is a non-resident?
You need evidence on file for every zero-rated sale. The CRA's memorandum on determining residence status says the supplier is responsible for checking the customer's status. It generally accepts:
A signed statement. A dated, signed statement from the customer that they are not resident in Canada and, where the rule requires it, not registered for GST/HST. Sample wording is in Appendix A and Appendix B of the memorandum.
The contract. A contract or invoice showing that you dealt with the non-resident, not with a Canadian related company.
Export documents for goods. The sales invoice plus a bill of lading, courier or mail receipt, customs broker's invoice or US import documents.
Two points catch people. A corporation incorporated in Canada is treated as a resident of Canada, even if its owners are in the US. A US company with a permanent establishment in Canada is treated as a resident for the activities of that establishment.
Do US sales count toward the $30,000 limit, and can I claim input tax credits?
Yes to both. Zero-rated sales are taxable sales, so they count toward the $30,000 small supplier limit. Once registered, you can claim input tax credits on the expenses used to make those sales.
Here is an illustration. An Ontario consultant bills only US clients. In the year she pays $10,000 plus $1,300 HST for software, rent and professional fees. She collects $0 of HST and claims $1,300 of input tax credits, so her return shows a $1,300 refund.
How do I report US sales on my GST/HST return?
Report zero-rated sales as part of your total sales on line 101 of the return. On an electronic return, zero-rated exports are entered on line 91, which is part of line 101. No tax is added for them, and your input tax credits go on line 106 as usual. File by the normal GST/HST return due date, even when the return shows a refund.
As general good bookkeeping practice:
record US sales as zero-rated, not as exempt
save the proof of export or non-residence with each invoice
review any sale to a US customer that was delivered or carried out in Canada
Remote Bookkeeping prepares and files GST/HST returns for clients. If your business deals in USD, our Multi-Currency module covers exchange rate tracking and multi-currency reconciliation. Our prices are published, you build your own plan and pay only for what you need, and the price is the same across Canada. See our services and pricing.
Frequently asked questions
Do I have to register for GST/HST if all my clients are in the US?
Yes, once your worldwide taxable sales pass $30,000, because zero-rated sales count toward the limit. See when to register for GST/HST. You charge 0% on those sales and can claim input tax credits.
My US client's staff come to Canada for training. Is that still 0%?
Generally no. A service carried out for individuals while they are in Canada is excluded from the general zero-rating rule. The CRA has a separate rule for courses that lead to a certificate or licence for a trade or vocation.
Do I charge GST/HST if my US customer picks up the goods in Canada?
It depends. The sale can be zero-rated if the customer is not a consumer, exports the goods as soon as is reasonable without using or altering them in Canada, and you keep proof of the export. If not, you charge GST/HST.
My US client has an office in Canada. Do I charge GST/HST?
You may have to. A non-resident with a permanent establishment in Canada is treated as a resident for the activities of that establishment. Check which entity you contracted with and get its residence status in writing.
Sources
About Remote Bookkeeping
Remote Bookkeeping is a Canadian-owned firm that provides monthly bookkeeping, financial reporting, payroll, HST/GST filing, year-end preparation and QuickBooks Online setup for small businesses across Canada. It was founded by Lia and George, who bring more than 30 years of combined experience. Call (289) 867-0808 or 1-800-880-9141, or contact us. Related reading: What Is the Difference Between Zero-Rated and Exempt Supplies?
This article is general information for Canadian small business owners. It is not tax, legal or accounting advice for your particular situation. Rates and thresholds change - always confirm against the source linked above or ask us.
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