How to Sell Digital Products in Canada: GST/HST Guide

Canada is a great place to sell digital products: your buyers are close by, and you can reach the US with the same store. The main tax to understand is the GST/HST, and the good news is that most new creators don't have to register at first. This guide explains the small supplier rule, which rate to charge once you do register, and how to get paid in Canadian dollars. Figures come from the Canada Revenue Agency, checked in October 2026.

The $30,000 small supplier rule

The CRA treats you as a small supplier, who generally doesn't have to register for the GST/HST, if your worldwide taxable sales (including those of any associated businesses) are $30,000 or less in a single calendar quarter and over the last four consecutive calendar quarters. Once you go over, you have to register and start charging tax.

You can also register voluntarily before you reach $30,000. That lets you claim back the GST/HST you pay on business costs, such as software and equipment, but you then have to charge tax on your sales and stay registered for at least a year.

Which rate to charge

Once you're registered, the rate depends on where your buyer is in Canada, not where you are:

Selling to buyers outside Canada

Many Canadian creators sell mostly to the US. Digital products sold to people outside Canada are often zero-rated for GST/HST, meaning the rate is 0%, but the rules depend on what you sell and to whom. Other countries may also have their own rules for digital sales into their country. Ask an accountant once those sales become a real part of your income.

Income tax

Income from selling digital products is business income. As a sole proprietor, you report it on your personal tax return, along with the costs you can deduct. Keep receipts for software, equipment and ads from the start.

Getting paid in Canadian dollars

We build Insidemetics, so we're biased. You can set your store currency to Canadian dollars, so buyers see one clear price in CAD. Buyers pay through your own PayPal account, and we take 0% of your sales; PayPal's fee comes out as usual. Plans are $29 (Pro) or $59 (Business) a month in US dollars, with a 7-day free trial and no card needed. Instagram Auto DM comes with every plan.

Because payments go straight to you, you're the seller. We don't add GST/HST at checkout or file returns for you, so watch your running total against the $30,000 threshold. Your monthly sales report shows each order and the buyer's country.

1. Start a free trial and choose CAD as your store currency.
2. Connect your PayPal business account.
3. Upload a product and set its price in Canadian dollars.
4. Put your store link in your bio and share it in your content.
5. Download your sales report each quarter and add it to your running total.