Do You Charge GST/HST to US Customers?
Do Canadian sellers charge GST/HST to US customers? Not on exported goods, or on most services and digital sales to US clients. Rules, exceptions, proof.
You’re a Canadian business with US customers: a Shopify store shipping to Seattle, an Etsy shop with buyers in Texas, or a designer billing a New York client. Do you add GST/HST to those invoices? Almost always no. But those sales still matter for your Canadian taxes, and they bring US taxes of their own.
TL;DR
- Physical goods you ship to the US are zero-rated exports: 0% GST/HST, as long as you keep proof they left Canada.
- Services and digital products sold to US clients are mostly zero-rated too. The exceptions involve customers or property in Canada.
- US sales still count towards the $30,000 small supplier threshold, so a mostly-US seller can still have to register.
- Registering helps exporters: you claim back the GST/HST on your costs, often as a refund.
- US taxes apply instead: import duty and tariffs at the border, and state sales tax once you pass a state’s threshold.
| What you sell to a US customer | GST/HST you charge | Counts towards $30,000? | US tax to think about |
|---|---|---|---|
| Physical goods shipped to a US address | 0% (zero-rated export) | Yes | Import duty, tariffs, state sales tax |
| Digital products (e-books, patterns, presets) | 0%, if the customer is a non-resident | Yes | State sales tax on digital goods in about half the states |
| Services to a US business client (design, development, marketing) | 0%, with exceptions | Yes | Usually none |
| Services to a US tourist while they’re in Canada | Full rate (for example 13% in Ontario) | Yes | None |
| Goods a US visitor buys and takes home from your shop | Full rate | Yes | Their own duty, at the border |
Physical goods: zero-rated exports
If you ship goods to a customer outside Canada, the sale is a zero-rated export. You charge 0% GST/HST, whichever province you’re in. Your store does this automatically once Canadian tax is set up and US orders are excluded.
To zero-rate, you need proof the goods left Canada. Keep:
- the carrier tracking or proof of delivery to the US address, and
- the commercial invoice or customs declaration you sent with the parcel.
The rule is about where the goods are delivered, not where the buyer lives. A US customer who has an order shipped to a cottage in Muskoka pays 13% Ontario HST. A Canadian who sends a gift to a friend in Vermont pays nothing.
Two things don’t change: the sale still counts towards your $30,000 threshold, and if you’re registered you still claim back the GST/HST on its costs.
For the US side of shipping goods, including the end of the US$800 de minimis rule, tariffs and Canada Post’s prepaid duty, read shipping to the US from Canada.
Services and digital products for US clients
Most services you supply to a non-resident of Canada are zero-rated. That covers a lot of small-business work for US clients: logo design, web development, copywriting, social media management, virtual assistance, consulting.
The main exceptions, which are taxed at your normal GST/HST rate:
- Services to an individual who is in Canada when you perform them. Cutting a US tourist’s hair in Banff is taxable.
- Services connected with real property in Canada, such as staging a cottage a US owner is selling.
- Services to goods located in Canada, with some exceptions for goods that are then exported.
Digital products (e-books, knitting patterns, Lightroom presets, online courses) sold to customers outside Canada are generally zero-rated as well, provided the customer is a non-resident. Keep the evidence your checkout collects: billing address, and IP or payment-card country if you have it.
The CRA’s rules on exported services and intangibles have more conditions than the goods rules. If services to US clients are a big part of your business, read the CRA’s memo on exported services and intangibles or ask an accountant to check your main cases.
US sales still count towards $30,000
This catches a lot of export-heavy sellers. Your small supplier status is based on your worldwide taxable sales, and zero-rated sales are taxable sales at 0%. So US orders count.
Example: an illustrator in Victoria. Fernwood Studio sells art prints and digital brushes on Shopify and does freelance illustration for US publishers. Over the last four quarters:
| Sales | Amount | GST/HST treatment |
|---|---|---|
| Prints to Canadian customers | $14,000 | Taxable at the customer’s province rate |
| Prints shipped to US customers | $9,000 | Zero-rated export |
| Digital brushes to US customers | $5,000 | Zero-rated (non-resident customers) |
| Illustration for US publishers | $8,000 | Zero-rated service to non-residents |
| Total | $36,000 | Over $30,000 |
Only $14,000 of Fernwood’s sales are taxable at the full rate, but its total of $36,000 is over $30,000, so it has to register. From then on it charges 5% GST on prints sold in BC, 13% HST on prints shipped to Ontario, and 0% on everything that goes to the US. The small supplier threshold guide explains exactly when the obligation starts.
Why exporters often like being registered
Registering means filing returns, but for a seller with lots of zero-rated sales it often means refunds. You charge 0% on US orders but still pay GST/HST on your costs: materials, packaging, postage, software, Shopify and Etsy fees, equipment. Once you’re registered, you claim all of that back as input tax credits.
If Fernwood Studio pays $2,400 of GST/HST on costs in a year and collects $900 from Canadian customers, its return shows a $1,500 refund.
That’s also why some sellers under $30,000 register voluntarily. The trade-off: once registered, you charge GST/HST to your Canadian customers too.
What US taxes apply instead
Not charging GST/HST doesn’t mean your US sales are tax-free. Two US taxes can apply:
- Import duty and tariffs on physical goods. The US$800 de minimis exemption has been suspended for all countries since 29 August 2025, so almost every parcel owes duty, plus tariffs on some Canadian products. See US tariffs on Canada for small sellers.
- State sales tax. Etsy, Amazon and eBay collect it on your behalf. Through your own store, you only register in a state once your sales there pass its economic nexus threshold, usually US$100,000 a year. See US sales tax for Canadian online sellers.
Services to US business clients usually don’t attract either.
How to set up your store
- Shopify: charge Canadian taxes only on orders delivered in Canada. US orders get no GST/HST automatically. See Shopify GST/HST setup.
- WooCommerce: add your Canadian rates with country
CAonly. Orders toUSaddresses won’t match them. See WooCommerce GST/HST setup. - BigCommerce: create tax zones for Canadian provinces only. See BigCommerce GST/HST setup.
- Invoices to US clients: show 0% GST/HST and, if you’re registered, your GST/HST number. A note such as “Zero-rated: supply to a non-resident” helps if the CRA asks.
FAQ
Do I charge GST to US customers?
No, not on goods you ship to them. Goods you export to a customer in the US are zero-rated, so you charge 0% GST/HST, as long as you keep proof the goods left Canada, such as carrier tracking and the commercial invoice. Most services and digital products sold to US clients are zero-rated too, with a few exceptions.
Do I charge HST to a US client for services?
Usually not. Most services supplied to a non-resident of Canada, such as a US business client, are zero-rated. The main exceptions are services to an individual who is in Canada when you perform them, and services connected with real property or goods located in Canada. Those are taxed at the normal GST/HST rate.
Do sales to US customers count towards the $30,000 GST threshold?
Yes. Zero-rated sales, including exports to the US, count towards the $30,000 small supplier threshold. A Canadian seller whose sales are mostly to US customers can still have to register for GST/HST, even though it charges no tax on those sales.
Why register for GST/HST if most of my sales are to the US?
Because you may have to, and because it can pay you back. Once registered, you claim input tax credits for the GST/HST you pay on materials, packaging, postage, software and platform fees. A seller whose sales are mainly zero-rated exports often gets a refund on every return.
What US taxes apply to my sales to US customers?
Two kinds. On physical goods, US import duty and tariffs are due at the border, because the US$800 de minimis exemption has been suspended since August 2025. And US state sales tax applies once you pass a state’s economic nexus threshold, usually US$100,000 a year, or straight away on marketplaces such as Etsy and Amazon, which collect it for you.
What proof do I need to zero-rate an export?
Evidence that the goods were shipped to an address outside Canada: the carrier’s tracking or proof of delivery, and the commercial invoice or customs declaration. For services and digital products, keep evidence that the client is a non-resident, such as their business address and billing details. Keep these records for six years.