Do I Charge HST to US Customers? Export Rules Explained

Do I charge HST when I ship goods to a US customer?

Goods you ship from Canada to the US are generally zero-rated if you keep export proof. Goods already warehoused and delivered in the US are supplied outside Canada instead. The Excise Tax Act covers a carriage contract naming a foreign destination, transfer to a qualifying carrier, and mail or courier to a foreign address.

A US address or US-dollar invoice does not prove export (CRA guidance).

Do Canadian companies charge HST on services to US clients?

Most services to non-resident clients are zero-rated when no exclusion applies. Advisory, consulting, and professional services have separate rules. Residence and service type matter more than payment currency (Excise Tax Act, Schedule VI, Part V; CRA service guidance).

Verify the contracting customer: a US parent may pay for its Canadian subsidiary. A US business is deemed resident for activities through its Canadian permanent establishment. Keep contracts, invoices, work records, and a dated, signed residence statement effective on the supply date; record the individual's or property's location when relevant (CRA service guidance). CRA residence guidance has sample certifications. Some specialized rules require non-registration proof; the general rule does not.

Which services to US customers are not zero-rated?

Installing or repairing equipment in Canada, or working directly on Canadian real estate, is generally excluded from the main export-service rules. The connection must be direct; discussing a Canadian asset does not itself make a service taxable (CRA service guidance).

The general rule also excludes services sold to non-resident individuals who contact the supplier while in Canada, or rendered to individuals here. Transportation, telecommunications, agency work, and some professional services have separate rules. A separate rule can cover goods brought to Canada solely for service and promptly exported (Excise Tax Act).

What if the US customer picks up goods in Canada?

Pickup or delivery to a Canadian address is not automatically zero-rated. For goods other than excisable goods, a non-consumer buyer can qualify if it exports the goods as soon as reasonable, does not consume, use, or supply them in Canada first, does not alter them beyond what transport requires, and you retain satisfactory export evidence. An individual buying for personal use cannot use this buyer-export rule (Excise Tax Act, Schedule VI, Part V).

Arrange export documents before releasing goods at a Canadian address. A buyer authorized under the CRA's export trading house or export distribution centre program may have a separate certificate route. Ordinary GST/HST registration or a promise to export is not enough. Without a qualifying route and its required records, charge tax where the Canadian supply is made (CRA place-of-supply rules).

When pickup is taxable, a non-resident business buyer that exports eligible goods within 60 days of delivery and cannot claim an input tax credit may seek a Form GST189, reason code 4 rebate. It must file within one year after export; other conditions apply.

What records prove the goods were exported if the CRA asks?

Keep records that trace the whole shipment from its Canadian starting point to a US destination. The CRA's evidence list includes the sales invoice or purchase agreement, shipping instructions, a carrier waybill or bill of lading, a freight or customs broker invoice, and US customs entry records. Match the goods, buyer, dates, and destination across those documents. Electronic records can qualify.

For buyer pickup, obtain independent proof of actual export; a statement of intent alone does not show goods crossed the border. Keep evidence with each invoice, usually for 6 years after the year it relates to (CRA record rules).

Missing proof can make the seller owe tax it did not collect: the owner pays for a sole proprietorship. If a corporation fails to remit net tax, its directors may also be liable under section 323, subject to collection conditions and a due-diligence defence. CRA must assess a director within two years after that person last left office. See GST/HST reviews and audits.

Can I claim input tax credits if all my sales are to the US?

Yes, a GST/HST registrant can generally claim input tax credits on GST/HST paid or payable for purchases used in commercial activities that make zero-rated exports. Zero-rated sales remain taxable supplies; they are different from exempt sales. The CRA's export guidance confirms that export-related purchases can support credits.

Zero-rated export sales count toward the small-supplier test, so you may need to register even if you charge no GST/HST on them. See when to register for GST/HST for the threshold and timing, and filing GST/HST and input tax credits for claim steps.

Can I claim GST/HST on marketplace fees?

Claim an input tax credit for a marketplace fee only if GST/HST was properly charged to your registered business and the fee supports your commercial activity. Keep the platform invoice or statement and the supporting information the CRA requires for that fee amount. A fee deducted from a payout is still an expense; the deduction itself does not prove Canadian tax was charged (CRA input tax credit requirements).

Check how the fee supplier is registered. If a non-resident platform has only simplified GST/HST registration, give it evidence of your regular registration to avoid a charge you cannot claim as an input tax credit. For reconciling payouts, see US-dollar sales and marketplace payouts.

What changes outside Ontario, including Quebec?

The export tests are federal; the Canadian rate matters when a sale is taxable rather than zero-rated. Use the place-of-supply rules for the actual delivery or service, not just your office address. The CRA rate table shows the current rates.

Quebec's QST has its own export rules. Revenu Québec zero-rates qualifying goods shipped outside Quebec and separately addresses services to non-residents. For QST or provincial registration, see doing business in Quebec or provincial sales tax.

Example

Ontario parts shipped to Michigan

An Ontario machine shop sells C$100,000 of parts to a Michigan buyer. It ships the parts under a carrier waybill naming Michigan and keeps the invoice and waybill together. The sale is zero-rated: C$0 HST charged. If the shop paid C$6,500 HST on eligible inputs and is registered, it can claim that amount as input tax credits.

Remote support and equipment installation

A Toronto company bills a Texas business C$50,000 for remote technical support supplied to that business. Assuming the buyer is non-resident and no exclusion applies, the service is zero-rated. The same company installs equipment at the customer's Toronto plant. That separate service concerns goods in Canada, so it charges 13% Ontario HST if the supply is made there.

Goods collected at an Ontario warehouse

A US business collects C$100,000 of goods at an Ontario warehouse. With neither export proof nor a valid certificate, C$13,000 of Ontario HST may be assessed. For future pickups, secure carrier or border records, or a CRA-authorized buyer certificate valid when the sale occurs.

Different for you?

• You freelance for US clients: GST/HST follows the same rules; see Canadian freelancer with US clients for other filings.
• You are unsure whether to register or how to file: see when to register and filing GST/HST and input tax credits.
• You charged the wrong rate or the CRA is reviewing exports: see correcting the GST/HST rate or GST/HST reviews and audits.
• You also need US sales tax or ship duty-paid: see foreign sellers and US sales tax or tariffs and duties on US shipments.
• You have mixed deliveries, pickups, or incomplete proof: gather the sales and export records for a bookkeeping review.