Navigating GST in Canada

Navigating VAT in Canada

This guide provides an overview of GST in Canada, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Canada.

Last Updated: November 2025

Mix

a federal GST with varying provincial sales taxes, and Canada’s system becomes notably complex for businesses.

Canada at a glance.

Standard rate

5% GST

Digital services GST

Yes, at 5%-15% depending on province

Mandate e-invoicing

Voluntary

Currency

Canadian Dollar (CAD)

Zero-rated items

N/A

VAT format

The BN, followed by “RT” and a four-digit program identifier (eg: 123456789RT0001)

Fiscal representation

No, not required for non-resident businesses

Reclaiming GST in Canada.

Reclaiming
GST in Canada.

Foreign businesses that incur GST on eligible expenses in Canada may be able to reclaim it.

Who can reclaim?

Claimable expenses:

Entertainment 5%-15%

Accommodation 5%-15%

Food, drink & restaurant services 5%-15%

Hiring means of transport 5%-15%

Fuel 5%-15%

Public Transport 5%-15%

Taxis 5%-15%

Admission to fairs & exhibitions 5%-15%

Training courses & seminars 5%-15%

Goods 5%-15%

Inter-company charges 5%-15%

Office expenses 5%-15%

Marketing costs 5%-15%

Professional fees & AP invoices 5%-15%

Entertainment

5%-15%

Accommodation

5%-15%

Food, drink & restaurant services

5%-15%

Hiring means of transport

5%-15%

Fuel

5%-15%

Public Transport

5%-15%

Taxis

5%-15%

Admission to fairs & exhibitions

5%-15%

Training courses & seminars

5%-15%

Goods

5%-15%

Inter-company charges

5%-15%

Office expenses

5%-15%

Marketing costs

5%-15%

Professional fees & AP invoices

5%-15%

GST compliance in Canada.

GST compliance
in Canada.

Doing business in Canada? You’ll need to play by Canada’s GST system rules.

Who needs to register?

Registration is required only once your business exceeds the threshold in Canada.

GST registration in Canada

GST filing deadlines in Canada

Monthly

Last day of the following month

Quarterly

Last day of the month following the quarter

Annual

3 months after the fiscal year-end

GST payment deadlines in Canada

Monthly

16th day of the following month

Quarterly

Last day of the month following the quarter

Annual

3 months after the fiscal year-end

Digital services in scope

Things to note

Canada applies GST on digital services based on the consumer’s location, requiring registration and compliance with federal and provincial tax rates.

e-invoicing in Canada.

Summary of the mandate in this country

B2G mandate in place

Yes

B2B mandate in place

No

B2C mandate in place

No

Obligation status: B2B e-Invoicing

To be announced

B2B e-Invoicing model

N/A

Name of exchange infrastructure

Peppol

Format(s) used

XML-standard (UBL)

FAQs

What types of business expenses qualify for a GST refund in Canada?

Eligible expenses for a Canada GST refund typically include accommodation, meals, local transport, trade show participation, and conference fees (provided the business is a sponsor, organiser or exhibitor). The reclaimable amount depends on the applicable Canada GST rate and specific industry regulations. There are potential refund opportunities when GST has been incorrectly charged.

How long does it take to receive a GST refund in Canada?

The refund processing time varies, but businesses applying for a GST tax return in Canada can expect it to take anywhere from a few months to a year, depending on the claim complexity and submission accuracy.

Do I need original receipts and invoices to reclaim GST in Canada?

Tax authorities require original VAT invoices, ensuring compliance with the Canada GST tax rate and invoice requirements is essential for a successful refund claim.

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Navigating GST in Canada

Navigating VAT in Canada

Mix

Standard rate

5% GST

Digital services GST

Yes, at 5%-15% depending on province

Mandate e-invoicing

Voluntary

Currency

Canadian Dollar (CAD)

Zero-rated items

N/A

VAT format

The BN, followed by “RT” and a four-digit program identifier (eg: 123456789RT0001)

Fiscal representation

No, not required for non-resident businesses

Monthly

Last day of the following month

Quarterly

Last day of the month following the quarter

Annual

3 months after the fiscal year-end

Monthly

16th day of the following month

Quarterly

Last day of the month following the quarter

Annual

3 months after the fiscal year-end

B2G mandate in place

Yes

B2B mandate in place

No

B2C mandate in place

No

Obligation status: B2B e-Invoicing

To be announced

B2B e-Invoicing model

N/A

Name of exchange infrastructure

Peppol

Format(s) used

XML-standard (UBL)

FAQs

Related content.

Making Tax Digital VAT Checklist: What UK Businesses Need to Do Now

VAT Reclaim on Marketing, Advertising and Design Spend: A Guide for Agencies

Why Economic Nexus Thresholds Are Not the Safety Net You Think They Are

Top 6 Countries Requiring Mandatory E-Invoicing in 2026

Exempt vs Zero-Rated VAT: Key Differences Explained

Your Business Overpaid on US Tariffs. Here’s How to Get That Money Back and Keep Getting It Back.

Can You Reclaim VAT on Staff Entertainment? Rules, Limits and Exceptions

E-Invoicing in Greece: Requirements, Deadlines, and Penalties

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

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