GST for Online Sellers in Australia and Canada: A Simple Guide

Part 1: GST in Australia

The rate: 10%

Australia has a single GST rate of 10% on most goods and services. Some items are GST-free, including most basic food, some medical and health products, many education courses, and exports.

When do you need to register?

You must register for GST when your business’s GST turnover reaches A$75,000 a year (A$150,000 for non-profit organisations), measured over the current or projected 12 months. Ride-share drivers must register regardless of turnover. Below the threshold, registering is optional. Check the ATO website for the current thresholds.

How to add and remove Australian GST

• Add GST: multiply the price by 1.1. A$50 + GST = A$55.
• Remove GST: divide the price by 1.1. A$55 ÷ 1.1 = A$50.
• Find the GST inside a price: divide by 11. A$55 ÷ 11 = A$5.

The “divide by 11” rule is the one Australian business owners use every day: the GST in any GST-inclusive price at 10% is exactly one-eleventh of the total.

Prices must include GST

In Australia, prices shown to consumers generally need to be the total price, including GST. If you are registered and sell a product for A$44, A$4 of that is GST that you pay to the ATO, and your real income is A$40.

GST for online and marketplace sales

• Low-value imported goods (A$1,000 or less) sold to Australian consumers have GST collected at the point of sale – usually by the online marketplace, or by overseas sellers who are registered.
• Marketplace fees. Australian sellers are usually charged GST on platform fees. If you are registered, you can generally claim this back as a GST credit.
• Reporting. Registered businesses lodge a Business Activity Statement (BAS), usually quarterly, reporting GST collected and GST credits claimed.

Tax invoices

If a business customer asks for a tax invoice, you must provide one for sales over A$82.50 (including GST). Many platforms can generate these for you.

Part 2: GST, HST and PST in Canada

Canada is more complicated because sales tax is shared between the federal and provincial governments.

The three types of sales tax

• GST – the federal Goods and Services Tax, 5%, charged across Canada.
• HST – the Harmonized Sales Tax, which combines GST and provincial tax into one rate in participating provinces.
• PST – a separate provincial sales tax in some provinces, charged on top of GST (in Quebec it is called QST).

Rates by province

Rates were checked against the Canada Revenue Agency in October 2026 – provinces do change them (Nova Scotia’s HST dropped from 15% to 14% in 2025), so check the Canada Revenue Agency and your provincial government for current rates.

Which rate do you charge?

For goods shipped to customers, GST/HST is generally based on where the customer is, not where you are. An Alberta seller shipping to a customer in Ontario usually charges 13% HST, not 5% GST. PST is administered separately by each province, with its own registration rules.

When do you need to register?

Most businesses must register for GST/HST once their worldwide taxable sales go over C$30,000 in a single calendar quarter or over four consecutive calendar quarters – the “small supplier” threshold. Below that, registration is optional. Non-resident sellers and digital platforms have their own registration rules.

How to add and remove Canadian sales tax

Use the combined rate for the customer’s province:

• Add 5% GST: × 1.05 – C$100 becomes C$105
• Add 13% HST: × 1.13 – C$100 becomes C$113
• Remove 13% HST: ÷ 1.13 – C$113 becomes C$100
• Remove 15% HST: ÷ 1.15 – C$57.50 becomes C$50

Prices are usually shown before tax

Unlike Australia, Canadian prices are normally displayed before tax, with GST/HST (and PST) added at checkout. Make sure your store or marketplace is set up to calculate tax by the customer’s province.

Worked example: the same product in both countries

A seller’s product costs 20 (in local currency) to make.

In Australia (GST-registered), sold at A$55 including GST:

• GST: A$55 ÷ 11 = A$5
• Net price: A$50
• Profit before fees: A$50 − A$20 = A$30

In Canada (GST/HST-registered), priced at C$50 plus tax, sold to Ontario:

• HST: 13% × C$50 = C$6.50, customer pays C$56.50
• You keep C$50 and pay the C$6.50 to the CRA
• Profit before fees: C$50 − C$20 = C$30

The profit is the same – the difference is how the price is displayed. In Australia the tax is inside the price; in Canada it is added on top.

Common GST mistakes online sellers make

1. Counting GST as income. GST you collect belongs to the tax office. Always calculate profit on the price excluding GST – our profit margin calculator makes this easy.
2. Removing GST by subtracting 10%. A$110 − 10% = A$99 is wrong; A$110 ÷ 1.1 = A$100 is right.
3. Using the seller’s province in Canada. For shipped goods, use the buyer’s province.
4. Forgetting to register on time. Keep an eye on your rolling turnover so you register before you pass the threshold.
5. Not claiming GST credits. Registered businesses can usually claim back GST paid on business costs, including platform fees.

The bottom line

In Australia, remember 10%, prices include GST, divide by 11. In Canada, remember 5% GST, 13–15% HST in some provinces, PST on top in others, and charge by the buyer’s province. For quick answers, use the free GST calculator.

This guide is general information, not tax advice. Tax rates and thresholds change – check the ATO or CRA and your provincial government, or speak to an accountant.