Alberta sales tax guide for sellers

Alberta is the only province in Canada with no provincial sales tax (PST). All taxable sales are subject only to the 5 percent federal Goods and Services Tax (GST), which is administered by the Canada Revenue Agency (CRA).

That makes Alberta one of the simplest provinces for sales tax compliance. But sellers still need to know when GST applies, how to calculate it, when registration is required, and how to file correctly.

This guide breaks down the essentials, including how to calculate GST, what is taxable versus zero-rated or exempt, and what Canadian and U.S. sellers need to know before shipping into Alberta.

What is the Alberta sales tax rate?

Alberta’s sales tax rate is 5 percent (GST-only).

Alberta charges a flat 5 percent sales tax, and that tax is the federal GST. The province does not impose its own provincial sales tax (PST).

GST applies to most goods and many services sold or consumed in Alberta. Because there is no PST, sellers do not need to manage dual tax rates, dual registrations, or dual filings the way they would in British Columbia, Saskatchewan, Manitoba, or Quebec.

Why doesn’t Alberta have a provincial sales tax?

Alberta has historically chosen not to adopt a provincial sales tax for economic and political reasons. The province has relied heavily on natural resource revenue, which allowed it to operate without a PST while other provinces introduced or increased theirs.

This makes sales tax calculation and compliance simpler in Alberta: GST is the only sales tax you need to manage in the province.

What goods and services are taxable in Alberta?

Because Alberta uses GST only, all sales tax classifications come from the federal GST/HST framework. There are three main categories:

GST-taxable (5 percent)

Most goods and services fall here, including:

• Retail goods (electronics, clothing, furniture, appliances)
• Digital products and SaaS
• Professional services (consulting, marketing, design)
• Telecommunication services
• Repairs, installation, and maintenance services

Zero-rated (0 percent)

GST applies at 0 percent, and sellers can still claim input tax credits (ITCs):

• Basic groceries
• Prescription drugs
• Many (but not all) medical devices (source: CRA guidance)
• Exports of goods and services

GST-exempt (not taxable)

GST does not apply, and sellers cannot claim ITCs related to these supplies:

• Residential rent
• Child care
• Many health-care services
• Financial services
• Many qualifying education services (for example, instruction provided by recognized schools or degree-granting institutions)

Where to verify GST taxability

Charging GST on exempt items, or failing to charge GST on taxable ones, can trigger interest, penalties, or back-dated assessments. Classification is the first step in accurate Alberta tax compliance.

Work with a CPA or use the CRA’s official guidance to verify GST taxability:

• GST/HST taxable supplies
• GST/HST zero-rated supplies
• GST/HST exempt supplies

Do you need to register for GST in Alberta?

This depends on where your business is based and whether the CRA considers you to be carrying on business in Canada.

A. Canadian-based businesses

You must register for GST once your worldwide taxable supplies exceed $30,000 CAD in:

• a single calendar quarter, or
• the last four consecutive calendar quarters

(Source: CRA RC4022 – General Information for GST/HST Registrants)

B. Non-residents not carrying on business in Canada

You must register under the simplified GST system once your Canadian-sourced taxable sales exceed $30,000 CAD in any rolling 12-month period.

This category includes most U.S. ecommerce sellers without a significant Canadian presence (no warehouse, employees, agents, contractors, etc.).

(Source: CRA Digital Economy Rules (2021))

C. Non-residents carrying on business in Canada

If the CRA considers you to be carrying on business in Canada, you must register under the regular GST/HST regime. In that case, the threshold uses worldwide taxable supplies, not only Canadian sales.

Register once your worldwide taxable supplies exceed $30,000 CAD in a single quarter or the last four consecutive quarters.

(Source: CRA RC4027 – Doing Business in Canada: GST/HST Information for Non-Residents)

How to calculate sales tax (GST) in Alberta

This is where Alberta aligns with the rest of the Canada Sales Tax series. GST follows a consistent calculation process nationwide.

Step 1: Determine if the item is taxable, zero-rated, or exempt

In Alberta you only charge 5 percent GST on taxable goods and services. For zero-rated items, charge GST at 0 percent. And for exempt items, do not charge GST.

Step 2: Calculate GST on the pre-tax price

• Formula: GST = Pre-tax price × 0.05
• Example: A $200 item → $200 × 0.05 = $10 GST

Step 3: Calculate the total price with GST

• Formula: Total price = Pre-tax price + GST
• Example: $200 + $10 = $210 total cost

Always calculate GST on the pre-tax price. Do not compound tax.

6. How to register, collect, and file GST in Alberta

Register

You can register for GST through the CRA’s Business Registration portal:

Registration gives you a GST account under your Business Number (BN).

Collect

Once registered:

• Charge 5 percent GST on taxable goods and services
• Show GST as a separate line on invoices
• Keep invoices, receipts, and exemption documentation for six years

File and remit

GST returns are filed with the CRA:

• Monthly, quarterly, or annually (your filing period is assigned based on revenue)
• You remit GST collected minus any eligible Input Tax Credits (ITCs)

File through CRA My Business Account.

7. Compliance tips for Alberta sellers

These best practices apply to both Canadian businesses and U.S. sellers expanding into Alberta.

1. Map products correctly. Classify every product or service as GST-taxable, zero-rated, or exempt. Most retail goods, digital products, and SaaS are fully taxable at 5%. Basic groceries and prescription drugs are zero-rated. Residential rent and many financial services are exempt.

2. Track GST registration thresholds. Canadian businesses and foreign sellers carrying on business in Canada must register once worldwide taxable sales exceed $30,000 CAD in a single quarter or over four consecutive quarters. Remote non-resident sellers not carrying on business in Canada must register under the simplified regime once Canadian-sourced taxable sales exceed $30,000 CAD in any 12-month period.

3. Sync your sales channels and accounting tools. Shopify, Stripe, Amazon, Etsy, and QuickBooks must all use consistent GST settings. Mismatched tax codes are a common cause of filing errors.

4. Keep complete records. Store invoices, receipts, and records of zero-rated or exempt sales for at least six years, as required by the CRA. Accurate records also support input tax credit (ITC) claims for businesses registered under the regular GST regime.

5. Display your GST number on invoices. For most business invoices where GST is charged, CRA requires your GST/HST registration number to appear so customers can claim Input Tax Credits (ITCs). Make sure your invoices meet the documentary requirements in CRA Memorandum 8-4. (Source: ITC documentary requirements specifying supplier registration number for invoices over specific thresholds.)

6. File and remit on time. Follow the filing frequency assigned by the CRA (monthly, quarterly, or annually). Late remittance triggers interest charges, even if the return is filed on time.

7. Automate GST across platforms. If you sell into multiple provinces or operate on several ecommerce channels, automation keeps rates consistent and prevents threshold misses. Tools like TaxCloud help you centralize your sales tax data, generate CRA-ready GST reports, and streamline filing workflows as your Canadian footprint grows.

Automate your Canadian sales tax compliance with TaxCloud

Alberta is simpler than most provinces, but you still need to calculate GST correctly, track thresholds, and file with the CRA on time. If you sell across provinces or into Canada from the U.S., manual tracking gets harder fast.

TaxCloud for Canada can help you:

• Track registration thresholds in real time
• Prepare CRA-ready GST reports
• Stay compliant across all Canadian and U.S. jurisdictions

Alberta is GST-only, but most cross-border sellers deal with sales tax across multiple provinces and states. TaxCloud helps centralize your compliance across Canada and the U.S.

Learn more about TaxCloud for Canada and join the waitlist as new features roll out.