E-Commerce Sales Tax Rules in Alberta

E-commerce is booming in Calgary, with more entrepreneurs selling products through Shopify, Amazon, Etsy, and their own websites. But understanding your sales tax obligations can be confusing — especially when you're selling across provincial or national borders.

GST Registration

If your total worldwide revenue exceeds $30,000 over four consecutive calendar quarters, you must register for GST. This threshold applies to your total revenue, not just e-commerce sales. Once registered, you charge 5% GST on taxable supplies sold to customers in Canada.

Selling Within Alberta

This is the simplest scenario. Alberta has no PST, so you only charge 5% GST on domestic sales to Alberta customers.

Selling to Other Provinces

When selling to customers in other provinces, you generally charge the tax rate applicable in the buyer's province. For HST provinces (Ontario, Nova Scotia, etc.), this means charging 13-15% HST. For provinces with separate PST (BC, Saskatchewan, Manitoba, Quebec), the rules vary — in most cases, you're only required to collect PST if you have a physical presence or meet certain revenue thresholds in that province.

Marketplace Facilitator Rules

As of July 2021, online marketplaces like Amazon, Etsy, and eBay are required to collect and remit GST/HST on sales made through their platforms by third-party sellers. If you sell exclusively through these platforms, the marketplace handles the tax collection. However, you're still responsible for tracking this correctly in your books and for any sales through your own website.

Cross-Border Sales (US and International)

Exports from Canada are generally zero-rated for GST purposes, meaning you don't charge GST on sales to customers outside Canada. However, you must maintain documentation proving the goods were exported. You can still claim ITCs on expenses related to zero-rated sales.

Record-Keeping for E-Commerce

CRA requires you to keep detailed records of all e-commerce sales, including: customer location, amount charged, tax collected, shipping costs, and platform fees. Reconciling multiple sales channels monthly is critical to maintaining accurate books.

Castle Bookkeeping for E-Commerce

We work with Calgary-based e-commerce sellers across Shopify, Amazon, Etsy, and WooCommerce. We reconcile your sales channels, track inventory costs, ensure correct tax treatment, and file your GST returns. Book a free consultation to learn more.