Tax rate by region Ontario

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.

Ontario operates under a unified 13% Harmonized Sales Tax (HST) administered federally by the Canada Revenue Agency (CRA), which blends the federal GST and the provincial sales tax component. Non-resident suppliers of digital products and electronic services are required to register under the simplified GST/HST framework once their annual sales to Canadian consumers reach the CAD 30,000 threshold. Electronic filings and payments scale dynamically—ranging from monthly to annual cycles based on business revenue—with all returns due within one month following the close of the reporting period.

Mosaic image

Ontario

Ontario is a Harmonized Sales Tax (HST) province at 13%, administered federally by the Canada Revenue Agency.

Official government link: Canada Revenue Agency

13.00%

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 this threshold is exceeded.

Step: 2 Business Registration

Register via the CRA’s Business Registration Online (BRO) portal. Non-residents typically use the Simplified GST/HST Registration for digital products and services.

Step: 3 TIN/VAT Number

You will be issued a Business Number (BN) with a GST/HST Program Account (RT) suffix (e.g., 123456789 RT 0001) by the Canada Revenue Agency.

Step: 1 Standard Rate

The sales tax rate is 13% (Harmonized Sales Tax – HST) for Ontario-based customers.

Step: 2 Rate Formula

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

 

Tax Amount = Net Price X 13%

 

Step: 3 Reverse Charge (B2B)

Under the simplified regime, the Reverse Charge Mechanism applies to B2B sales. If a business customer provides a valid GST/HST registration number, the non-resident seller must not charge the tax. The buyer is responsible for self-assessing if the service is for non-commercial use.

 

Step: 1 Selling B2C

You must charge the 13% HST to private consumers (non-registered individuals) based in Ontario. Use the billing address or IP address to determine the customer’s location.

Step: 2 Selling B2B

Tax is not charged if the buyer provides a valid GST/HST registration number. You must verify this number using the CRA’s online registry.

Step: 3 Invoice Requirements

Invoices must include:

 

  • Supplier business name
  • GST/HST Registration Number
  • Date of issue
  • Description of service
  • Total amount (including tax)
  • Statement indicating the tax rate (13%) or that the price includes HST.

Step: 1 Filing Interval

Default is Quarterly for the simplified digital economy regime.

 

Step: 2 Filing Deadline

The filing deadline is one month after the end of each reporting period (e.g., for the Q1 period ending March 31, the deadline is April 30).

Step: 3 Submission

File through GST/HST NETFILE using the simplified return. Payments are made via the CRA “My Payment” portal or wire transfer for non-residents.

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 Ontario’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

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