Understanding Nexus in Canada
Reaching sales tax nexus in Canada is easier than you might expect. Unlike other regions that may only consider sales within their borders, Canada determines nexus based on your total global sales. If your total revenue from all markets exceeds $30,000 CAD, you have technically reached nexus in Canada.
When Do You Need to Take Action?
No sales in Canada?
No action is required. Even if you've reached the $30,000 CAD global sales threshold, you only have tax obligations if you make at least one sale in Canada.
Selling in Canada?
If you have even a single transaction in Canada and your total global sales exceed $30,000 CAD, you may be required to register for a Canadian sales tax account.
What Do You Need to Do if You Sell in Canada and Have Nexus?
If you've met the nexus threshold and have transactions in Canada, you may need to:
Register for a GST/HST Account – Businesses that meet the threshold and sell in Canada typically need to register with the Canada Revenue Agency (CRA).
Collect and Remit Sales Tax – Once registered, you must charge and remit Goods and Services Tax (GST) or Harmonized Sales Tax (HST), depending on the province.
File Regular Tax Returns – Businesses must file periodic GST/HST returns based on their reporting schedule.
Getting started is easy! Simply click the “Register” button in your Nexus report to begin the registration process quickly and seamlessly.
Key Takeaways
Canada counts all global sales when determining nexus.
If your total sales exceed $30,000 CAD, you’ve reached nexus.
Only businesses making sales in Canada need to take action.
Registration, tax collection, and remittance may be required if you sell in Canada.
By keeping an eye on your total sales and Canadian transactions, you can stay compliant and avoid unexpected tax obligations. Need help? We're always here to help. Please reach out to us using the chat bubble in the bottom right corner or reach out to us at success@trykintsugi.com