Tax rate by region Northwest Territories

Select region

The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

The Northwest Territories levies no territorial sales tax, leaving only Canada’s federal 5% Goods and Services Tax (GST) applicable, which is administered by the Canada Revenue Agency (CRA). Under the simplified GST/HST framework, non-resident suppliers of digital products and electronic services must register once their annual sales to Canadian consumers reach the CAD 30,000 threshold. Filing frequencies are determined by revenue tiers—ranging from monthly to annual cycles—with electronic returns and payments due within one month after the end of the reporting period.

Mosaic image

Northwest Territories

Northwest Territories has no territorial sales tax. Only the federal Goods and Services Tax (GST) of 5% applies, administered by the Canada Revenue Agency.

Official government link: Canada Revenue Agency

5.00%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Once exceeding CAD 30,000 in annual sales 

Online registration possible

Yes

Local representative needed

No

Registration procedure

CRA online business registration; non-residents use Simplified GST/HST regime

List of digital and electronic services liable for tax

Digital products and services delivered electronically (CRA)

Penalties

Late filing 1% + 0,25%/month (max 12 months)

Registration threshold

CAD 30.000 annual sales

Filing interval

Monthly, quarterly, or annually 

Filing deadline

One month after end of reporting period

E-invoicing requirements

Not mandatory

Record keeping

6 years

How-To Guides: Northwest Territories SaaS VAT

Step: 1 Threshold

Effective July 1, 2021, Canada requires the following non-resident vendors to register for and collect thefederal GST/HST if their sales exceed CAD 30,000 in a 12-month period.

 

Registration is mandatory if your taxable supplies of digital services to Canadian consumers (B2C) exceed the imposed threshold.

Step: 2 Business Registration

Register with the Canada Revenue Agency (CRA) via the “Simplified GST/HST” portal for non-resident digital service providers.

Step: 3 TIN/VAT Number

You will be issued a GST/HST Registration Number by the CRA.

Step: 1 Standard Rate

The sales tax rate is 5% (Federal GST only). NWT has no Provincial Sales Tax (PST).

Step: 2 Rate Formula

To calculate your tax amounts, please use the following formula:

 

Tax Amount = Net Price X 5%

 

Step: 3 Reverse Charge (B2B)

Under the simplified regime, the Reverse Charge Mechanism applies to B2B sales. You do not charge GST to Canadian businesses that provide a valid GST/HST registration number.

 

Step: 1 Selling B2C

You must charge 5% GST to all private consumers (non-registered individuals) located in NWT.

Step: 2 Selling B2B

Do not charge GST if the buyer provides a valid GST/HST number. If no number is provided, the buyer is treated as a consumer and taxed at 5%.

Step: 3 Invoice Requirements

For simplified registrants, the invoice must show:
• Supplier name
• GST/HST Number
• Date of invoice
• Total amount paid/payable
• The amount of GST/HST charged (or a statement that the price includes GST/HST at 5%).

Step: 1 Filing Interval

Standard filing for simplified digital economy registrants is Quarterly (calendar quarters).

Step: 2 Filing Deadline

The return and payment are due by the last day of the month following the end of the reporting period.

Step: 3 Submission

Taxes are filed electronically via the CRA “My Business Account” or the “GST/HST NETFILE” portal. Payments can be made via SWIFT or Canadian financial institutions.

Step: 4 Record Keeping

Tax records should be kept for a minimum of 6 years from the end of the latest year to which they relate.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Northwest Territories’ VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

Overwhelmed by SaaS sales tax compliance?

Our team of SaaS tax experts is here to help. Contact us today for a free consultation.

Talk to an Expert
Mosaic image
en_USEnglish
es_ESEspañol pt_PTPortuguês pt_BRPortuguês do Brasil fr_FRFrançais it_ITItaliano de_DEDeutsch nl_NLNederlands pl_PLPolski ro_RORomână ukУкраїнська zh_CN简体中文 ja日本語 ko_KR한국어 en_USEnglish