Whether you need a GST/HST number for your Etsy or Shopify store in Canada depends on your total annual revenue. The rule is the same as for any self-employed business: mandatory registration when you cross $30,000 in taxable supplies over four consecutive calendar quarters.
The $30,000 Threshold: Same Rules Apply
Etsy and Shopify sellers are self-employed sole proprietors (or incorporated businesses) for CRA purposes. The GST/HST registration threshold applies to all your taxable supply revenue combined — not just from one platform.
If your combined Etsy revenue + Shopify revenue + any other self-employment income exceeds $30,000 over four consecutive quarters, you must register for GST/HST.
How Platform Tax Collection Works (Important Update)
Since 2021, the CRA has required digital platform operators to register for and collect GST/HST on behalf of Canadian sellers in certain circumstances. Here is how it affects you:
Etsy
Etsy collects and remits GST/HST on sales made to Canadian buyers through Etsy’s marketplace, effective since July 1, 2021. This means Etsy handles the GST/HST on the sale price for your Canadian customers. However:
- This does not replace your own registration obligation — if you cross $30,000, you still register for your own GST/HST account
- Once you are registered, you should not be charging GST/HST separately on top of what Etsy already collects on the same transaction — coordinate this with your Etsy shop settings
- Etsy’s collection applies to marketplace sales — it does not cover off-platform sales or your other business income
Shopify
Shopify is a platform for your own e-commerce store — you set the prices and tax settings. Shopify does not collect or remit GST/HST on your behalf for your own storefront. You are responsible for:
- Registering for GST/HST when you cross $30,000
- Configuring Shopify’s tax settings to charge the correct rate to Canadian buyers based on their province
- Collecting, tracking, and remitting GST/HST through your CRA My Business Account
PST/QST Considerations for Products
Unlike services (which are largely subject only to GST/HST), physical products are subject to provincial sales taxes (PST) in BC, Manitoba, and Saskatchewan, and QST in Quebec. If you ship physical goods to customers in these provinces:
- BC: PST registration may be required if you sell to BC residents above BC’s threshold
- Quebec: QST registration required separately from GST
- Manitoba and Saskatchewan: PST may apply — thresholds and rules vary
Non-resident sellers (including other Canadian provinces) must navigate each province’s rules. Shopify’s Tax Insights tool can help identify provincial tax obligations.
How to Register
Register for a GST/HST account through the CRA’s Business Registration Online (BRO) portal. Add your GST/HST registration number to your Shopify tax settings so it appears on invoices to business buyers who need it for their own ITC claims.
Frequently Asked Questions
Does Etsy’s GST/HST collection count toward my $30,000 threshold?
Yes — your total Etsy sales (the full sale price, not just what Etsy remits to you) count toward your $30,000 threshold. The fact that Etsy collects the GST/HST on your behalf does not reduce your revenue for threshold purposes.
What if I sell on both Etsy and my own Shopify store?
All your taxable supply revenue from all sources — Etsy, Shopify, in-person sales, Etsy Pattern, any other platform — is combined for the GST/HST threshold calculation. If the combination exceeds $30,000, you must register regardless of which platform generated more revenue.
Can I claim ITCs on my Etsy fees and Shopify subscription?
Yes. If you are registered for GST/HST, the GST/HST embedded in your Etsy transaction fees and Shopify monthly subscription are ITCs claimable on your GST/HST return. Keep your monthly invoices and account statements from both platforms.