Tax rate by region Nunavut

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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.

Nunavut 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.

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Nunavut

Nunavut 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: Nunavut SaaS VAT

Step: 1 Threshold

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

 

Registration is mandatory if sales to non-registered Canadian consumers exceed this limit.

Step: 2 Business Registration

Register through the Canada Revenue Agency (CRA). Non-resident SaaS providers typically use the Simplified GST/HST Registration for the digital economy.

Step: 3 TIN/VAT Number

The Business Number (BN) with a GST/HST account is issued by the CRA.

Step: 1 Standard Rate

The sales tax rate is 5% GST (Federal Rate). 

 

 

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)

Applies. Under the Simplified GST/HST regime, if a B2B buyer provides a valid GST registration number, the non-resident seller does not charge tax. The buyer may be required to self-assess the tax.

Step: 1 Selling B2C

You must charge 5% GST on all sales to private consumers (non-registrants) once the registration threshold is exceeded.

Step: 2 Selling B2B

Do not charge GST if the business buyer provides a valid GST/HST registration number. If no number is provided, treat the sale as B2C and charge 5%.

Step: 3 Invoice Requirements

Invoices must include:
1. Supplier’s legal name and GST number.
2. Recipient’s name.
3. Date of invoice.
4. Description of SaaS services.
5. Total amount and tax amount (or state “Tax Included”).
6. Currency (CAD).

Step: 1 Filing Interval

Taxes should be filed quarterly or Annual (determined by the CRA at registration, usually quarterly for digital services).

 

Step: 2 Filing Deadline

Filing deadlline is one month following the end of the reporting period (e.g., April 30th for the Q1 period ending March 31st).

Step: 3 Submission

E-file via CRA My Business Account or the Simplified GST/HST portal. Payments made via wire transfer or online banking.

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 Nunavut’s 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

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