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How Canada sales tax applies to Reverb orders

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.

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.

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