Do I need to charge Canadian sales tax on online sales?

November 2018

Internet sales have grown significantly over the past several years, largely because many businesses operate online stores and can deliver goods right to the door of their customers. While some retailers sell goods both online and in-store, others operate solely online. No matter what type of retail business you operate, you need to understand your Canadian sales tax obligations.

This article focuses on sales made in Canada. However, all Canadian retailers selling goods online in the U.S. need to consider the U.S. Supreme Court decision in South Dakota v. Wayfair, released in June 2018The Wayfair decision will likely expand Canadian companies’ obligation to register for, collect and remit sales tax, and file sales tax returns, in the U.S.