Do I charge GST/HST to US or foreign clients

Short answer

Usually no. Most goods exported from Canada and most services provided to non-resident clients are zero-rated, meaning you charge 0% GST/HST but can still claim input tax credits on your related costs. The rules differ by whether you supply goods or services, so classification matters.

Zero-rated is not the same as exempt

This distinction is the whole game. A zero-rated supply is taxable at 0%: you charge no tax to the customer, but you keep the right to claim input tax credits on the GST/HST you paid to produce it. An exempt supply has no tax either, but you cannot claim ITCs on related costs.

Exports and most sales to non-residents are zero-rated, not exempt, which is the favourable outcome. You get to recover tax on your inputs while charging your foreign customer nothing. Getting this classification right is what lets an export-focused business sit in a persistent refund position.

Exporting goods

Goods you sell and ship to a customer outside Canada are generally zero-rated, provided you have evidence the goods actually left the country. That evidence, shipping and customs documentation, is what the CRA looks for on review, so keep it with the invoice.

If the customer takes possession of the goods in Canada and exports them later themselves, the rules are different and the sale may be taxable, so who exports and when matters.

Providing services to non-residents

Services to a non-resident are commonly zero-rated, but there are important exceptions. The general rule zero-rates a service supplied to a non-resident, but the service is not zero-rated if it relates to real property in Canada, to goods situated in Canada at the time, or is a service rendered to an individual physically in Canada when it is performed.

So consulting delivered remotely to a US company is generally zero-rated; a service tied to Canadian real estate or performed for someone visiting Canada may not be. The nature and location of the service, not just the customer's address, decides it.

Digital and remote services

For a Canadian business selling digital services, software or remote consulting to genuine non-resident customers, the supply is usually zero-rated under the general rule. The key evidence is that the customer is truly non-resident and not in Canada when the service is performed.

Note the separate regime for non-resident vendors selling into Canada, who now often must register and charge tax to Canadian consumers. That is the mirror image and does not change your treatment when you are the Canadian exporter.

Why you still want to be registered

Because exports are zero-rated rather than exempt, an exporter benefits from being registered even below the $30,000 threshold. Registration lets you recover the GST/HST on all your Canadian costs, from rent to software to professional fees, while charging your foreign customers nothing.

An unregistered exporter simply eats that input tax as a cost. For a business whose customers are mostly abroad, voluntary registration and regular refund filings turn a cost into recovered cash.

Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. General information, not advice for your specific situation — book a free 15-minute call to discuss your circumstances.

Do I charge GST/HST to US or foreign clients? Frequently Asked Questions

Common questions regarding our compliance workflows and service guarantees.

Generally no. Most services to a genuine non-resident are zero-rated, so you charge 0% but still claim input tax credits on related costs. Confirm the service is not one of the exceptions.

Shipping and customs documentation showing the goods left Canada. The CRA looks for this evidence on review, so keep it filed with the invoice.

Usually zero-rated under the general rule, provided the client is non-resident and not in Canada when the service is performed and it does not relate to Canadian property.

Often yes, voluntarily. Because exports are zero-rated, registration lets you recover the GST/HST on your Canadian expenses instead of eating it as a cost.

A service performed for an individual who is physically in Canada at the time can lose zero-rating. The timing and location of performance matter, not just the client's home country.

Yes. We register you, classify your supplies correctly, and file the regular refund claims that recover the input tax on your Canadian costs.

Still Searching for the Answer You Need? View FAQ Page or Contact Us

Related Questions Canadians Search

The questions Canadians actually search on this topic, answered plainly. Browse every question in the Canadian tax answers directory.

There is no single rate. Federal personal income tax for 2026 runs through five brackets: 14%, then 20.5%, 26%, 29% and 33% on the highest band, and your province's brackets stack on top, so your combined marginal rate is the federal rate plus the provincial one. The 2026 federal basic personal amount is $16,452, tapering to $14,829 as net income rises from $181,440 to $258,482. Capital gains and Canadian dividends are taxed on a different basis.

CRA online filing for 2025 returns opened 23 February 2026 and closes 29 January 2027. Most people file between late February and the 30 April 2026 deadline, and that stretch is what tax season refers to. You can gather documents and prepare a return earlier, but it cannot be sent electronically before the system opens. Employment and investment slips such as T4 and T5 are issued by payers early in the year, and the CRA's Auto-fill service can pull the ones it already holds once you have set up My Account.

Yes. Most people file electronically through NETFILE using CRA-certified software, which submits the return directly and confirms receipt immediately. Filing online is also what makes a fast refund possible: for 2025 returns filed in 2026 the CRA service standard is about two weeks online, against a considerably longer standard for a paper return, and registering direct deposit removes the cheque step. CRA online filing for 2025 returns opened 23 February 2026 and closes 29 January 2027.

Generally no. If your taxable revenue stays at or below $30,000 over four consecutive calendar quarters you are a small supplier and do not have to register or charge GST/HST, though you may register voluntarily to claim input tax credits. The threshold is unchanged for 2025 and 2026. Note it is also tested within a single quarter: if you exceed $30,000 in one quarter, small-supplier status ends on the sale that takes you over.

Yes, and it is usually worth doing. Filing with little or no income keeps benefits flowing, because the GST/HST credit, the Canada Child Benefit and provincial credits are all recalculated from a filed return. It also lets you carry forward tuition and other unused amounts. Report EI benefits, severance and any RRSP withdrawals: those slips are income even in a year you were not working. New RRSP room needs earned income.

Your purchase price does not set your property tax directly, but it becomes part of the sales evidence assessment authorities use to value comparable homes, so paying well above market can pull your assessment up at the next valuation. A private appraisal done for a mortgage or refinancing is not shared with the assessor and changes nothing on its own. The assessed value on your notice, times the municipal rate, is what drives the bill.

Box 20 shows the registered pension plan contributions your employer withheld from your pay during the year. You claim that amount as a deduction on your return, which lowers your taxable income. It is not the same as the pension adjustment, reported elsewhere on the slip, which reduces next year's RRSP room instead of giving you a deduction. If box 20 looks wrong, ask your employer for an amended T4 rather than changing the figure yourself.

A payroll information return is the annual package an employer files with the CRA reporting what it paid and what it withheld: one slip for each person paid, plus a summary that totals the slips and reconciles them against the amounts remitted during the year. For employees that is the T4 return. It is separate from the source deduction remittances made through the year, and mismatches between the two are what trigger CRA queries.

Services That Handle This

gst returns bookkeeping tax planning Dividend Tax Calculator — no signup needed Break-Even Analysis for Businesses Tax Filing in Kingston Accountants for E-Commerce Business Accounting Fixed Fees Shareholder Compensation Planning Services Tax Accountant in Woodstock Tax for Agriculture, Natural Resources & Energy Notice to Reader Pricing Voluntary Disclosures Program Filing in Canada Brantford Accounting Firm Personal Care, Creative & Media Accounting Trust & Estate Tax Filing Cost Canadian Notice to Reader Assistance Moncton Tax Services Professional Services Tax Specialists How Much for Partnership Tax Filing Charity CRA Audit Support for Businesses Tax Filing in Moose Jaw Accountants for Manufacturing Personal Tax Filing Fixed Fees Restricted-Fund Accounting Services Tax Accountant in Bathurst Tax for Financial Services & Insurance Corporate Tax Filing Pricing SR&ED Claim Preparation in Canada St. John's Accounting Firm Home & Business Support Services Accounting Non-Profit Tax Filing Cost Canadian T1 Adjustment Request Oshawa Tax Services

Reviewed and fact-checked by Udit Gupta

Ex Big 4 — Ernst & Young, Deloitte · International & cross-border tax specialist · CPA Canada (In-Depth Tax Program) · Chartered accountant, ICAI & MIA

Udit Gupta has over 15 years of experience helping corporations and business owners with corporate structuring, corporate tax filing, bookkeeping, payroll, GST/HST, cross-border tax and CRA representation. Big 4 trained at Ernst & Young and Deloitte, and qualified as a chartered accountant in India and again in Malaysia, he founded his accounting practice in 2014 to serve entrepreneurs, startups and non-resident business owners across Canada. View full member bio.

The Institute of Chartered Accountants of India — member 521458 · Malaysian Institute of Accountants — member CA 44667 · Ex Big 4: Ernst & Young, Deloitte · CPA Canada (In-Depth Tax Program), completed 19 Dec 2023 · In-Depth GST/HST Part I, 12 Jul 2022 · Part II, 5 Jul 2023

Editorial policy. Every page is researched against primary sources — the Income Tax Act, CRA publications and CPA Canada guidance — and every rate or threshold is stated with the tax year it applies to.

Free 15 Min Consultation for Businesses