How Can We Help You?

Marketplace Taxes in Canada

Due to updated Canadian tax regulations, marketplaces like Reverb may be required to collect and remit tax—including Goods and Services Tax/Harmonized Sales Tax, Quebec Sales Tax, and Provincial Sales Tax (GST/HST, QST, and PST)—to the relevant Canadian tax authorities on items purchased by buyers in Canada and on fees charged to Canadian sellers in certain circumstances. 

Starting July 1, Reverb will be collecting GST/HST on eligible orders placed by shoppers in Canada. Reverb automatically includes the tax in the buyer’s total at the last stage of the checkout process. Reverb is then responsible for remitting it to the relevant tax authorities.

See Canada’s Revenue Agency for more information on these new tax requirements.

Do I need to register for Canadian tax IDs?
What tax does Reverb collect from Canadian buyers to remit to the tax authorities?
When are Canadian buyers charged tax?
How do I set up my tax policies?
How do I enter my Canadian taxpayer IDs?
How do I find the amount Reverb remits?

Do I need to register for Canadian tax IDs? 

Canadian tax regulation requires sellers to register for a GST/HST ID and to collect and remit the tax to the CRA once they’ve reached $30,000 CAD in sales. As a seller, if you are GST/HST registered, you’ll need to add in your Tax ID here to ensure your buyers don’t pay the tax twice.

Sellers that are GST/HST registered also have the ability to set up tax policies in their account to automatically register the tax percentage per province. On the Tax Policy tab, you’ll be able to find both the Tax ID submission and tax policy tool. There you can set up your tax policies to ensure the correct taxes are being applied on your sales. 

Sellers who have not met this threshold may not be required to register for a GST/HST ID, but should make the decision for themselves on whether it makes sense for their business. 

The provinces of Quebec, Manitoba, British Columbia and Saskatchewan also have their own tax rules. 

If you need help registering for GST/HST or any other taxes, or have other questions on your tax obligations, please reach out to your tax and legal advisor. 

What tax does Reverb collect from Canadian buyers to remit to the tax authorities?

I have a GST/HST or QST tax ID added to my Reverb account:

Reverb will not collect and remit these taxes from Canada buyers for sales of goods. You should adjust your listing prices to collect any required taxes, then remit it to the appropriate tax authorities with your GST/HST or your QST filing.

By adding your GST/HST ID or QST to your Reverb account, you’re letting us know that you’re already handling the taxes you're responsible for. This will prevent your buyers from being charged taxes twice.

I don’t have a GST/HST or QST tax ID added to my Reverb account:

Reverb will automatically collect GST/HST from your Canadian buyers and QST from your Quebec buyers and remit them to the tax authorities.

If you’re already collecting and remitting this, it may result in buyers being charged taxes twice, where both you and Reverb collect taxes and remit them.  Please add in your Tax ID here to ensure your buyers don’t pay the tax twice.

If you need help registering for GST/HST or any other taxes, or have other questions on your tax obligations, please reach out to your tax and legal advisor.

When are Canadian buyers charged tax? 

Reverb will start collecting tax on relevant purchases from Canadian buyers from 1 July 2022 in the followings scenarios:

Seller Tax ID Status

When are buyers charged? 

GST/HST ID added to account

If the item is being shipped from a seller in Canada to a buyer in Canada, the GST/HST registered seller is responsible for calculating and remitting the tax to the tax authority. 

If you have not established a tax policy, your listing price should be inclusive of the taxes you are required to collect and remit to the tax authorities. 

No GST/HST ID added 

If the item is being shipped from a seller in Canada to a buyer in Canada, the appropriate taxes will be charged at checkout and the buyer will be responsible to pay the tax and Reverb will remit the tax to the tax authority.  

QST ID added to account

If the item is being shipped from a seller in Canada to a buyer in Quebec, the QST-registered seller is responsible for calculating and remitting the QST to Revenu Quebec. 

Where the seller is both GST/HST and QST registered, consider establishing tax policies for your shop or ensuring your listing price is tax inclusive. 

No QST ID added 

If the item is being shipped from a seller in Canada to a buyer in Quebec, the appropriate taxes will be charged at checkout and the buyer will be responsible to pay the tax and Reverb will remit the tax to the tax authority.  

For sellers located in Canada, Reverb is required by law to collect the PST and RST from your buyers in British Columbia, Manitoba, and Saskatchewan and remit it to the local tax authorities, regardless of whether you have a registered tax ID from these provinces. Separately, if the seller is registered in Quebec, we won’t collect QST from their buyers due to federal guidelines.

If the seller is located outside of Canada, Reverb is required to collect the PST from buyers in Manitoba and Saskatchewan.

How do I set up my tax policies?

Follow these steps to add your Canadian tax policies to your account: 

  1. Go to your shop’s tax policy section.
  2. Enter the proper Tax Rates to the corresponding provinces.
  3. If you need to apply the tax to shipping, select that box.
  4. Click "Add tax policy".

How do I enter my Canadian taxpayer IDs? 

Follow these steps to add your Canadian taxpayer IDs to your account: 

For Canadian sellers with Canadian Taxpayer IDs 

  1. Go to your shop’s tax policy section.
  2. Select Tax Policies.
  3. Enter your taxpayer ID(s) under Tax Identification Number.
  4. Select Save.

CA_taxpayer.png

Double check that you’re entering your ID in the correct field. Submitting it in the wrong field (such as putting GST in the QST field) will result in an error.

How do I find the amount Reverb remits?

You can find the sales we report to Canada by downloading your Orders CSV file.

To use your Orders CSV to see the amounts:

  1. Head to the Orders tab under your Selling tab.
  2. Hit the dropdown “Export” button to download.
  3. Download and open the CSV. 
  4. Look for and sort the Buyer Country column.
  5. Add the Processing Fee and Order Net columns for sales that were completed by buyers in Canada.

If you have any canceled orders from Canadian buyers, you should also count those.

To find your canceled orders:

  1. Head to the Orders tab under your Selling tab.
  2. Select Canceled under the Completed status on the left.
  3. Hit the dropdown “Export” button to download.
  4. Download and open the CSV. 
  5. Look for and sort the Buyer Country column.
  6. Add the Processing Fee and Order Net columns for sales that were completed by buyers in Canada.
Was this article helpful?