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Marketplace Taxes in Canada

Quick answer

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

Learn how to add your tax ID for your Reverb shop

Reverb collects GST/HST on eligible orders placed by buyers in Canada. Reverb automatically includes the tax in the buyer’s total at the last stage of the checkout process. Reverb then remits it to the relevant tax authorities.

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

Do I need to register for Canadian tax IDs?

Canadian tax regulation requires sellers that have reached $30,000 CAD in sales to register for a GST/HST ID and to collect and remit the tax to the CRA.

As a seller, if you are GST/HST registered, you’ll need to add in your Tax ID to your Reverb account 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 can submit your Tax ID and 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:

By adding your GST/HST or QST ID 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.

Reverb will not collect and remit these taxes from Canada buyers for your sales. 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.

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 your Tax ID to your Reverb account 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?

As of July 1, 2022, Reverb collects tax on relevant purchases from Canadian buyers 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.

What is the tax on fees charged to sellers?

The Canadian tax regulations require marketplaces to collect tax on fees charged to sellers. The tax charged on your fees will depend on where you are located, and in some cases, whether or not you are GST/HST or QST registered. Any taxes collected on fees for sellers will be remitted by Reverb to the relevant tax authority.

If Reverb has already collected GST/HST on the order from your buyer, you won’t be charged GST/HST on order-related fees.

Seller taxable status

What will I be charged?

Seller is GST/HST registered

GST/HST will be charged on all fees for sellers.

Seller is not GST/HST registered

GST/HST will not be charged on fees for the sale of an item that Reverb already charged the buyer GST/HST on.

GST/HST will be charged on all other fees (for example, on fees for transactions to US buyers).

Quebec seller is QST registered

QST will be charged on all fees for sellers.

Quebec seller is not QST registered

QST will not be charged on fees for the sale of an item that Reverb already charged the buyer QST on.

Seller in British Columbia

PST will be charged on all fees for sellers.

Seller in Manitoba or Saskatchewan

QST will be charged on all fees for sellers.

Quebec seller is not QST registered

RST/PST will not be charged on any fees for sellers.

If Reverb charges you tax on your fees for sellers, speak with your tax accountant to find out if you can reclaim that tax from your local tax authorities.

Will I receive a bill from Reverb for GST/HST, QST, or PST on fees?

Reverb provides statements to sellers where GST/HST, QST, or PST has been charged. These invoices will appear on the first of each month for the previous month’s statement.

Each monthly statement contains a summary of fees assessed in the previous month. Invoices are based in the currency of your Reverb account.

You can access the statement by visiting your My Bill page. Once there, select the month to get an invoice for that period. Select Export to download a CSV file of the statement.

Will tax on fees information be accessible via API?

Yes. If you are an integrator, you can visit our API documentation Changelog to learn how API responses have been updated to display this new information.

What if I am not registered for GST/HST?

You do not need a GST/HST registration to sell on Reverb. If you are not GST/HST registered, Reverb is required to charge your Canadian buyers GST/HST on their purchases from Canada. Learn more about when Reverb charges Canadian buyers tax.

Any GST/HST charged to sellers will appear in the current balance on your monthly invoice. You’ll receive a monthly statement on the first of the following month that includes a list of fees and how much you were charged on those fees during the prior month.

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

You can learn more in our Terms of Use and Billing Policy.
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