Quick answer
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.
As of July 1 2022, Reverb collects 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. |
If the seller is located outside of Canada, Reverb is required to collect the PST from buyers in Manitoba and Saskatchewan.