If your company is located in Canada, all Canadian provinces will automatically appear in your tax settings. Quaderno calculates GST, PST, HST, and QST where applicable.
If your company is not located in Canada, Canada will not appear in your tax settings.
Before collecting sales tax in Canada, you would first need to be registered there.
Registering in Canadian provinces
Quaderno does not register your company for GST, PST, HST or QST. Get started by contacting your accountant and checking out resources from the Canadian revenue agency. We've also added more resources in our blog: Sales Tax 101 for Canadian Startups
As a foreign business, do I need to register in Canada?
If you have a permanent establishment in Canada (including any warehouses), you would be expected to register there. For foreign sellers, Quebec has an annual sales registration threshold of CAD30,000 for digital goods, based on local sales. We’d recommend contacting your accountant for more information.
Adding Canadian tax rates
If your business is located in Canada, you’ll already see these rates all set up for you.
For customers from Canada, the store uses different tax rates. There is a 5% tax rate for all Canadian provinces except Quebec, which has both a 5% GST rate and a 9.975% QST rate. Using priorities — priority 1 for the 5% GST rate and priority 2 for the 9.975% QST rate — you can "layer" these rates and apply both of them to your invoice subtotal.
If you do need to add a new tax rate in Canada, just follow these steps:
You can add a tax rate to your Quaderno tax settings.
- Go to Settings > Tax rates
- Click "Create tax rate" to add a new tax. You’ll see the form to complete:
- Complete the form and click “create tax”.
Quaderno will then apply that tax to all applicable future sales.