How to File GST/HST in Canada: 2026 Guide for U.S. Sellers

Learning how to file GST HST Canada effectively can impact whether the tax you pay at the border is a permanent sunk cost or a credit you can use to offset the tax you owe.

Successfully managing your GST number and HST account also allows you to navigate these filing methods without eroding your margins.

By the end of this guide, you’ll be able to:

• Register for GST/HST as a U.S. seller
• Choose the right GST/HST regime for your business model
• File and remit GST/HST and navigate SWIFT transfers from U.S. banks
• Optimize your cash flow: Use the Form GST20 election to recover your tax credits up to nine months faster.

Before you begin: This guide focuses on the tactical process of filing and remitting GST/HST taxes to the Canada Revenue Agency (CRA). If you haven’t secured your GST/HST number yet, read How to register for sales tax in Canada as a U.S. business first.

Step 1: Confirm your GST/HST regime (Regular vs Simplified)

Before registering, you need to determine which of the two distinct “regimes” applies to your business model. This classification is the single biggest factor in your Canadian profitability because it dictates whether you can reclaim the tax you pay at the border.

Regular Regime vs. Simplified Regime comparison for U.S. sellers

The B2B “Exemption” logic in the Simplified Regime

Under the Simplified Regime, you are legally only required to collect tax from consumers (non-GST/HST registrants). You should not charge tax to Canadian businesses, but the burden of proof to verify that a customer falls into this category is entirely on you, the seller.

• Think of the BN as the Canadian equivalent of a “Digital Exemption Certificate”: If a Canadian business provides you with their 9-digit Business Number (BN), you are authorized to sell to them at 0% tax.
• The “verify or charge” protocol: You cannot simply take the buyer’s word for it. In 2026, the CRA expects you to verify the BN against the legal business name using the CRA GST/HST Registry.
• The sunk cost trap: If you charge a business customer GST/HST under the Simplified Regime (which uses an RT9999 account identifier), that business cannot claim an Input Tax Credit (ITC) to get that money back.

Why this matters: If you make a mistake and charge a B2B client tax in the Simplified Regime, they are effectively paying a 5% to 15% premium that they can never recover via Input Tax Credits. This makes you a “high-friction” vendor compared to a competitor in the Regular Regime.

When to switch to the Regular Regime as a U.S. seller

If you are currently in the Simplified Regime, you should consider switching to the Regular Regime the moment you:

1. Move inventory into a Canadian warehouse (FBA, 3PL).
2. Spend more than $5,000/year on Canadian services (fulfillment, advertising, or commercial rent).
3. Sell to Canadian businesses who need to recover the tax you charge them.

Pro tip: Switching isn’t automatic. You must voluntarily apply for the Regular Regime and be prepared to provide the CRA with proof of your “commercial activity” in Canada.

Step 2: Confirm your filing frequency and filing deadlines

Once your regime is set, the CRA assigns your filing frequency based on your annual taxable supplies (total Canadian sales). For 2026, the deadlines are strict.

2026 GST/HST filing deadlines for U.S. sellers

The “annual filing trap” for U.S. businesses

For smaller sellers and small business owners, the Canada Revenue Agency often defaults to an annual filing cycle. But it’s important to realize that while they give you until June 15 to file your tax return, the actual payment (the money you need to remit to the CRA) is due April 30.

Don’t wait for a paper return to arrive in the mail before you pay your taxes; pay what you owe this through your online CRA account or CRA account dashboard.

For Q1 2026, the CRA’s prescribed interest rate on overdue taxes is 7%. If you wait until June 15 to remit your payment, the CRA will back-date that 7% interest (compounded daily) to May 1.

Do U.S. sellers have to file a “nil return” in Canada?

Yes. Once you’re registered, the CRA requires a return for every assigned period, even if you had $0 in Canadian sales.

• The risk: Failure to file a “Nil” return triggers automated non-compliance notices.
• The consequence: Repeated failure to file can lead to the CRA freezing your account or triggering a “Requirement to File” notice, which significantly increases your audit risk.

Step 3: File and remit GST/HST from the U.S.

The CRA has mandated electronic filing for almost all GST/HST registrants. Filing on paper is now effectively obsolete — doing so carries a $100 penalty for the first offense and $250 for subsequent returns.

As a U.S. seller, your GST/HST filing workflow depends entirely on your registration.

Here is the line-by-line breakdown of how to file your return and remit what you owe based on your specific regime.

File your GST/HST return

Remit your GST/HST payment from a U.S. bank (paying the money you owe)

Getting the numbers right on the return is only half the battle; the money must land in the CRA’s account in full. Your financial institution must handle the wire transfer correctly to satisfy the CRA. If your accounting software supports it, you can also use HST internet file transfer for more direct reporting.

Option A: Paying in CAD (mandatory for Regular Regime)

If you are in the Regular regime, you must send Canadian Dollars. If you send USD from a U.S. account, your bank will convert it at a marked-up rate, often leaving you “short” a few dollars.

• The protocol: Use an international wire transfer.
• Beneficiary: Receiver General for Canada
• SWIFT Code: NOSCCATT (Bank of Nova Scotia)
• Charge field: Select “OUR” (This ensures you pay all intermediary bank fees. If you select “SHA,” fees are deducted from the tax payment, leaving a balance owing).
• Pro tip: Always send $50 CAD extra if you aren’t 100% sure about your bank’s fee structure. The CRA’s 2026 interest rate on underpayments is 7%, compounded daily.

Option B: Paying in USD (optional for Simplified Regime)

If you are in the Simplified regime and have an approved Foreign Currency Designation, you can remit in USD using the same SWIFT details above. Simply instruct your bank to send the exact USD amount as calculated on your return.

How to apply for a Foreign Currency Designation

If you are in the Simplified Regime, you can apply to report and remit in USD to eliminate exchange rate risk.

• The benefit: The tax you collect in USD from your customers will match exactly what you remit to the CRA — no daily exchange rate math required.
• How to apply: Submit the Application for Foreign Currency Designation via the CRA’s portal.
• The deadline: You must file this application on or before the first day of the reporting period for which you want it to take effect.
• Eligibility: This is not available to the Regular Regime. Physical goods/inventory sellers must still report and pay in CAD.

Step 4: Stop giving the CRA a tax-free loan (use the “GST20 Election”)

While the CRA automatically assigns an Annual filing period to most U.S. sellers (those with taxable revenue under $1.5M CAD), this default is a silent drain on your working capital.

Under Section 248 of the Excise Tax Act, you can file an election using Form GST20 to change your reporting period to Quarterly or Monthly. For a U.S. business shipping physical goods, this is the single most effective way to keep your cash where it belongs: in your bank account.

How the GST20 election unlocks your cash flow

When you ship goods into Canada to a 3PL or Amazon FBA, you pay 5% Import GST at the border. As an Annual filer, that money is “trapped” as an Input Tax Credit (ITC) for up to 15 months.

Scenario: The $100,000 cash trap

Imagine your U.S. business ships $100,000 CAD worth of inventory into Canada at the start of the year.

• The initial hit: You pay $5,000 CAD in Import GST at the border immediately.
• As an annual filer (Default): That $5,000 sits with the CRA. You don’t get to “use” it to offset the tax you collect from customers until you file your return the following spring.
• As a monthly/quarterly filer (Elected): You file every 30 or 90 days. The CRA reconciles your $5,000 credit against your sales almost immediately. You effectively “liquidate” that $5,000 back into your working capital within weeks rather than a year later.

How to make the election

You don’t need to wait for a new fiscal year. You can file the election digitally through your CRA My Business Account under the “File an election” tab.

• Effective date: The change typically takes effect on the first day of your next fiscal quarter.
• The workflow: Only increase your filing frequency if your accounting team is ready to pull CAD-converted reports every 30 or 90 days. The penalty for a missed monthly return is the same as a missed annual one.

Step 5: Keep an eye on the “non-harmonized” provinces (BC, SK, MB, QC)

If you thought having a federal GST/HST number meant you were covered across all of Canada, this is where the compliance math gets messy.

Four provinces — British Columbia, Saskatchewan, Manitoba, and Quebec — do not “harmonize” with the federal government. (Meaning: they don’t use HST).

Instead, they run their own independent provincial sales tax (PST, RST, QST) systems with their own rules, portals, and filing deadlines. Your 9-digit Business Number is essentially invisible to these provincial authorities.

Here’s a crash course in the PST nuances you’ll need to watch out for as a U.S. seller. Work with TaxCloud if you want to stop manually managing 13 different provincial and federal triggers and move your compliance to the background.

Canada’s Provincial Sales Tax (PST) thresholds

Saskatchewan’s $0 threshold

Saskatchewan is the most aggressive jurisdiction in North America for remote sellers. Unlike the federal government or other provinces, they have no small-supplier threshold.

• The rule: If you ship even one taxable item to a resident in Saskatchewan, you are technically required to register for PST immediately.
• The penalty: They are proactive with audits on U.S. eCommerce sellers. Do not ignore Saskatchewan just because your volume there is low.

Quebec: The “Specified” vs. “Regular” QST trap

Filing a QST return in Quebec is a separate obligation. You cannot use your gst or hst number for this; you must use the specific portal provided by Revenu Québec. If you need assistance, the tax centre for the province can be reached, but digital filing is the only way to meet 2026 standards.

• The Specified Regime: Designed for U.S. SaaS and digital service providers. You register through a simplified portal and do not claim any tax credits.
• The “NEQ” Mistake: When registering, ensure you use the “Suppliers Outside Quebec” portal. If you accidentally register through the general business portal, you will be assigned a Quebec Enterprise Number (NEQ). This classifies you as a local business, triggering a mandatory annual registration fee and the requirement to file corporate updates in French.

The provincial sales tax filing workflow

Because four of Canada’s provincial systems are independent, you cannot “consolidate” your payments. Keep this in mind when selling in Canada.

1. Separate portals: You will need logins for eTaxBC (BC), SETS (Saskatchewan), TAXcess (Manitoba), and Revenu Québec.
2. No inter-provincial credits: You cannot use a credit from your federal GST return to pay your BC PST. They are separate buckets of money.
3. Local currency: Most provincial portals require CAD reporting. Unlike the federal Simplified regime, “Foreign Currency Designation” is rarely an option at the provincial level.

Expand into Canada without the friction

Scaling into Canada is a massive opportunity, but the “compliance tax” on your time is real.

Between tracking two different GST/HST regimes, navigating decoupled provincial portals, and managing 7% interest risks on wire transfers, it’s easy to see why most U.S. sellers feel overwhelmed.

TaxCloud for Canada was built to take that burden off your desk. We don’t just calculate tax; we give you a single source of truth for your entire North American operation.

• See how TaxCloud handles this: Our platform automates Canadian tax calculations and prepares your data for filing, so you can claim every ITC you’re owed without the manual headache.
• Expert support on demand: For complex registrations or deep-dive ITC reconciliations, we connect you with cross-border accounting experts like 786 Venture CPA. As a trusted TaxCloud accounting partner, they specialize in the Canada-U.S. corridor and ensure your business is audit-proof from day one.

Book a chat with our team to learn how TaxCloud can help with your Canada expansion.

Not ready to chat with us yet? Learn more about TaxCloud for Canada.

Frequently asked questions

What if my marketplace (Amazon/eBay) already collected the tax?

Under Canada’s Marketplace Facilitator rules, the platform is responsible for collecting and remitting the tax on the final sale to the consumer. However, if you are registered under the Regular regime, you still have a filing requirement. You must report these sales (often as “exempt” or “tax-paid”) to keep your account active and, more importantly, to claim your ITCs on the inventory you shipped into Canada.

What is the specific document I need to survive a CRA audit?

To claim Input Tax Credits (ITCs) on imported goods, the CRA requires the B3-3 Canada Customs Coding Form. This document is generated by your customs broker and is the only “gold standard” proof that you—the non-resident importer—paid the GST at the border. Pro tip: Ensure your legal business name on the B3-3 matches your GST registration exactly.

Do I have to file a GST/HST return if I had zero Canadian sales this month?

Yes. In Canada, this is called a “Nil Return.” If you are a registered filer, the CRA expects a return for every single reporting period. Failing to file a Nil return is the fastest way to trigger an automated non-compliance flag, which can lead to account freezes or a mandatory audit.

Can I pay my Canadian taxes in USD?

Only if you are in the Simplified regime and have received an official Foreign Currency Designation. If you are in the Regular regime (Physical goods/Inventory), the CRA requires all payments to be in CAD. If you send USD from a U.S. bank, the conversion happens at your bank’s rate, which is often 3–5% worse than market rates—and if you’re short by even $1, the CRA will charge you interest.

Can I file my provincial taxes (PST) on the same form?

Only for HST provinces (Ontario, Nova Scotia, New Brunswick, PEI, and Newfoundland & Labrador). If you have a tax obligation in British Columbia, Saskatchewan, Manitoba, or Quebec, those require entirely separate provincial registrations and independent filing portals.