Table of Contents
- Why Non-Residents Need to Register
- What Is GST and HST?
- Things You Should Know Before Registering
- Step-by-Step Guide + Form Explanation
- Essential Documents
- Legal Scenarios
- FAQ
Why Non-Residents Need to Register
If you are a non-resident selling taxable goods or digital services to Canadian customers, you may be required to register for GST/HST if your sales exceed CAD $30,000 annually. This applies even without a physical presence in Canada.
What Is GST and HST?
| Tax | Meaning | Application | Rate |
|---|---|---|---|
| GST | Goods and Services Tax | Applies federally across Canada | 5% |
| HST | Harmonized Sales Tax | Applied in certain provinces (GST + provincial tax) | 13%–15% |
Things You Should Know Before Registering for HST
- You don’t need a Canadian office to register under the simplified regime.
- The $30,000 CAD threshold includes global taxable sales to Canadian consumers.
- RC726 registrants cannot claim Input Tax Credits (ITCs).
- Only digital services or cross-border eCommerce businesses qualify for RC726.
- HST rate depends on the customer’s province of residence.
- You’re responsible for collecting, reporting, and remitting HST once registered.
- The CRA may audit foreign companies and request business evidence.
Step-by-Step Guide + Form Explanation
- Determine if your business exceeds CAD $30,000 in annual taxable sales to Canadian customers.
- Choose the right registration form:
- RC726 – Simplified GST/HST Registration For non-resident businesses with no Canadian presence providing digital services or cross-border supplies. Cannot claim input tax credits. [Register online]
- RC1 – Regular GST/HST Registration For businesses with physical presence (e.g. warehouse, employees) or wanting to claim ITCs. Submission is via fax or mail. [Download RC1 Form]
- Prepare your supporting documents (see next section).
- Submit your application following the method required for each form.
- Receive confirmation and your GST/HST registration number by email or mail.
Essential Documents for RC726
- Government-issued ID (passport or national document)
- Business registration or incorporation certificate (from your country)
- Proof of Canadian business activity (invoices, service catalog, or eCommerce site)
- Foreign Tax ID number (EIN, RFC, etc.)
- Banking info (for possible remittance setup)
Legal Scenarios You Should Know
- Not required to register: If you only supply exempt goods/services (e.g. basic groceries, health services)
- Required to remit: Once registered, you must collect and send GST/HST to the CRA
- Filing frequency: CRA assigns monthly, quarterly, or annual filing schedules
- ITCs: Not claimable under RC726. Switch to RC1 if ITCs are needed
FAQ (Click to expand)
1. Can non-residents register for GST/HST in Canada?
Yes. Non-residents who make taxable supplies in Canada must register once they cross the threshold or meet digital supply rules.
2. What is the $30,000 CAD threshold?
It refers to your annual worldwide taxable sales to Canadian customers. If you exceed it, GST/HST registration becomes mandatory.
3. What is RC726?
RC726 is the CRA's simplified registration form for non-residents supplying digital or intangible services to Canadian consumers.
4. What is RC1?
RC1 is used for regular GST/HST registration by businesses with physical presence or those who need to claim input tax credits.
5. Is GST/HST registration free?
Yes. The CRA does not charge for registering for GST/HST through either form.
6. Can I get input tax credits with RC726?
No. If you need to claim ITCs, you must register through RC1 and not the simplified RC726 process.
7. How long does the CRA registration take?
Usually 2–4 weeks depending on completeness of documentation and CRA workload.
8. Can I switch from RC726 to RC1 later?
Yes. If your business changes or grows, you may apply for full registration using RC1.