Add a tax registration number in Shopify
A tax number is what turns tax collection on for a region. Shopify does not know your registration until you enter the number, and it will not charge tax in a region where you have no registration. This tutorial adds a GST/HST number for Canada, then adds a British Columbia PST number, and checks the $30,000 registration threshold along the way.
Written · Shopify admin, desktop steps · 5 minutes read
The worked example
| Store | British Columbia, Canada |
| GST/HST number | Entered under Canada |
| BC PST number | Entered under British Columbia |
| Taxable sales, first quarter | $7,200 CAD |
| Taxable sales, second quarter | $7,400 CAD |
| Taxable sales, third quarter | $7,800 CAD |
| Taxable sales, fourth quarter | $8,200 CAD |
| Total, four consecutive quarters | $30,600 CAD, over the $30,000 threshold |
Download the record: tax-registration-tracker.csv (220 bytes).
A tracker for the registrations in this tutorial, with the quarter's taxable sales, the running total against the $30,000 CAD threshold, and the registration status for each.
1Work out whether you must register
If your store is based in Canada, you generally need to register for a GST/HST account if your revenue from taxable sales in Canada is more than $30,000 CAD in a single calendar quarter, or more than $30,000 CAD over four consecutive calendar quarters. In this tutorial the four consecutive quarters came to $7,200, $7,400, $7,800, and $8,200, for a total of $30,600, so registration is required. A store below the threshold may choose to register voluntarily.
2Open Taxes and duties
From your Shopify admin, go to Settings > Taxes and duties.
3Open the region
In the Tax regions section, click the region the number belongs to. For the GST/HST number, click Canada. For the BC PST number, click British Columbia.
4Collect sales tax and enter the number
Click Collect sales tax. In Tax number, enter your tax number. If you have applied for a tax number, but you do not have one yet, leave this field blank. You can update it when you receive your number.
5Click Collect tax and repeat for each province
Click Collect tax. Then repeat the same steps for each provincial registration you hold. If a province where you sell charges a provincial sales tax separately from GST, you might need to register in that province too, and enter that number under the province.
6Edit a number when it changes
You can add, delete, or change your registrations or account numbers at any time. To edit an existing tax registration, click the menu button next to the region you want to edit, update the regions and account numbers, and click Collect sales tax.
The arithmetic
The threshold check is the core of this tutorial: the store stayed below the line for three quarters and crossed it on the total for four consecutive quarters:
| Period | Taxable sales | Running total | Over $30,000? |
|---|---|---|---|
| First quarter | $7,200.00 | $7,200.00 | No |
| Second quarter | $7,400.00 | $14,600.00 | No |
| Third quarter | $7,800.00 | $22,400.00 | No |
| Fourth quarter | $8,200.00 | $30,600.00 | Yes |
$7,200 plus $7,400 plus $7,800 plus $8,200 is $30,600, which is $600 over the $30,000 threshold. Because the total crosses over four consecutive quarters, and not in a single quarter, the store stops being a small supplier at the end of the month following the fourth quarter, and its effective date of registration is no later than the day of its first sale after that date. If a single quarter had crossed $30,000 on its own, the effective date would be no later than the day of the sale that pushed it over, with GST/HST charged on that sale.
Held at the counter
A blank number is a waiting room, not a plan. If you have applied for a tax number but do not have one yet, you may leave the field blank. Update it when the number arrives. Leaving it blank forever means the region is not properly registered, so set a reminder for the day the number is due.
Each province needs its own number. The provinces that charge a separate provincial tax are British Columbia, Manitoba, Quebec, and Saskatchewan. A GST/HST number does not cover BC PST, so a store selling into British Columbia needs both numbers entered in the right places.
Only a tax authority decides whether you must register. Shopify's pages repeat this rule: only a tax authority can determine whether you are required to register. The $30,000 figure is the general rule for GST/HST, and your province may have its own threshold, so confirm with the authority before you decide.
Sources
- Setting up taxes — Shopify's help pages: the setup steps and the rule that a tax number can be left blank while an application is pending.
- Basic Tax service in Canada — Shopify's help pages: the $30,000 CAD GST/HST threshold and the provinces that charge a separate provincial tax.
- Manage your taxes — Shopify's help pages: adding, deleting, or changing registrations and account numbers at any time.
- When to register for and start charging the GST/HST — Canada Revenue Agency: the $30,000 tests for a single calendar quarter and for four consecutive calendar quarters, voluntary registration, and the effective dates of registration.