Selling Into Canada From a US Store: GST/HST, CAD Pricing and Shopify Markets

Selling into Canada from US Shopify stores usually needs no GST/HST registration, if goods ship from the US by mail or courier. The tax is collected by customs at the border, from whoever pays the import charges. That is your customer, unless you ship with charges paid.

Registration applies when your goods sit in Canada (a warehouse, a 3PL, a consignment shelf) and sales pass $30,000 CAD in 12 months. It also applies if you carry on business in Canada. For the storefront, create a Canada market in Shopify Markets and show CAD prices. Then decide whether taxes are paid up front, so the customer is not surprised at the door.

This guide is for US sellers with one shop and no tax department. It covers GST/HST, border thresholds, international shipping, CAD pricing, Managed Markets and a key example. It matters for international shipping: a shopper facing a surprise bill often refuses the package.

Does Shopify work in Canada?

Yes. A US Shopify store can reach Canada with no extra plan. You add Canada as a market, set shipping rates, and choose how prices and taxes show. Customers can pay in CAD if you use Shopify Payments.

What changes is the tax, customs and shipping costs for international orders. Those are the focus here.

GST/HST: do you need to register?

The Canada Revenue Agency’s digital-economy rules cover “qualifying” goods sold to consumers in Canada. The definition excludes goods sent by mail or courier from outside the country. You must keep records showing they were shipped that way. Those goods are taxed at import instead.

CRA’s own example: a non-registered vendor shipping from abroad, where GST applies on importation at 5%.

It depends where your stock ships from

Your setup	GST/HST position
Ship from your US store by mail or courier	Generally no registration under the digital-economy rules; tax collected at the border
Stock held in a Canadian warehouse or 3PL	Register under the normal regime once sales of those goods pass $30,000 CAD in any 12 months
You carry on business in Canada (staff, an office, inventory, regular solicitation there)	Register if you are not a small supplier

The small supplier test

A non-resident business is a small supplier if worldwide taxable sales, with associates, are $30,000 or less. That test applies to one calendar quarter and to the last four. Pass $30,000 in one quarter and you must charge tax from the sale that crossed the line.

Pass it over four quarters and you stop being a small supplier at the end of the following month. Registration is due within 29 days of the effective date.

Carrying on business in Canada

Carrying on business depends on facts. CRA lists factors such as where goods are delivered, where sales are solicited, and where business assets or inventory sit. Advertising aimed at Canada is one factor, not a test on its own. If you are unsure, a cross-border accountant can settle it in one call.

Voluntary registration

A non-resident that regularly solicits orders for goods delivered to Canada may register voluntarily. It can then claim input tax credits, but must charge and remit tax on its Canadian sales.

Without a permanent establishment in Canada, CRA generally requires a security deposit. The exception: estimated taxable sales in Canada of $100,000 a year or less, and net tax between $3,000 owing and $3,000 refundable.

GST/HST rates by province

When tax is charged, the rate depends on where the goods are delivered:

Province or territory	Rate
Alberta, British Columbia, Manitoba, Quebec, Saskatchewan, Northwest Territories, Nunavut, Yukon	5% GST
Ontario	13% HST
Nova Scotia	14% HST
New Brunswick, Newfoundland and Labrador, Prince Edward Island	15% HST

British Columbia, Manitoba, Quebec and Saskatchewan also have provincial sales taxes with their own registration rules. If you register federally, check each province you ship to.

Do I need to pay taxes if I sell on Shopify?

Yes, but keep two kinds of taxes apart. Sales taxes (US state sales tax, GST/HST) are collected from customers and passed on. You are responsible for remitting what you collect. Income tax is paid on your profit. Sales taxes you collect are never your profit.

For international orders to Canada shipped from the US, you usually collect no GST/HST. The customer pays it at the border. Your US income taxes still apply to the sale. Shopify does not file or remit taxes for you in either country.

Keep tax reports for Canada separate from US tax reports. That makes the year-end review simpler.

Canadian thresholds at the border

Courier thresholds

The CBSA sets low-value thresholds for goods from the US or Mexico by courier, using the customs form value:

Up to $40 CAD: free of import charges and taxes.
Above $40 to $150 CAD: no tariff, but taxes apply.
Above $150 CAD: tariffs and taxes apply.

Postal thresholds

By mail, only $20 CAD and under is free of all charges, from any country including the USA. Above that, taxes and any tariffs apply. This is the main reason US sellers prefer couriers for anything over a small order.

Canada Post’s handling fee

When a postal package owes taxes, Canada Post collects them from the recipient. Its help page says a $9.95 handling fee is included in the amount owing. The customer can pay online, at the door, or at the post office.

For a $45 order, that fee alone can feel like a penalty. US sellers hear more complaints about this fee than any other part of international shipping.

How much shopping can Canadians do in the USA?

That is a traveller question, and the CBSA answers it with personal exemptions. After 24 hours away, a resident can bring back $200 CAD in goods. After 48 hours, $800 CAD. Same-day trips get no exemption. Online orders shipped to Canada use the thresholds above instead.

Shipping method: Canada Post, UPS or a courier

International shipping by post

USPS hands international shipping to Canada Post for delivery. Rates are low, but so is the $20 CAD postal threshold. The customer usually pays taxes plus the $9.95 fee, and delays are common in customs.

Courier: UPS, FedEx and DHL

UPS, FedEx and DHL clear packages through their own brokerage services. International shipping by courier costs more, but clears faster. Couriers get the higher $40 and $150 CAD thresholds. Most charge the recipient a brokerage fee, unless you ship with charges prepaid.

For orders above $40 CAD, a courier usually makes more sense. Ask UPS and other services for their brokerage fees, which vary by package value. UPS quotes them per shipment.

DDP or DAP labels in Shopify

Shopify’s help page describes two shipping label types. DDP labels include import charges and taxes, which are paid by you. DAP labels require the customer to pay on arrival.

For US stores, Shopify lists DHL Express (US) as supporting DDP. Canada Post DDP covers USA destinations only. If charges are paid up front and you pick a carrier without DDP, Shopify will not sell you a shipping label.

Shipping label data

Every shipping label needs a product description, value, HS code and made-in country. Shopify Shipping fills the customs form and shipping documents from your product records, so keep records correct and matched to the goods. Errors generate delays.

Canadian counter-tariffs on US-made goods

Since September 8, 2026, Canada’s United States Surtax Order (2026) applies surtaxes of 15%, 25% or 50%. They cover listed goods made in the US. The Department of Finance names product categories including steel and aluminum, dairy, appliances, furniture, and clothing and apparel.

The Order defines scope by US origin for marking purposes. It lists no general exemption for low-value consumer shipments.

If you sell furniture, apparel or appliances made in the US, check your products against the schedules before you set CAD prices. Goods made outside the US (for example in China) and shipped by US sellers are judged on their own origin.

Set up a Canada market in Shopify Markets

In the Shopify admin, visit Markets and click Create market.
Under Name, enter “Canada”. Choose Draft to preview first, or Active to go live.
In Includes, click Add condition, select Regions, and choose Canada.
Review the Inherited settings. Click the plus icon on any setting you want to change for Canada; it moves to Customized.
Click Save.

Before you switch the market to Active, complete the shipping setup for Canada. Shopify says to configure rates for every country in a market before activating it.

Full multi-currency features need Shopify Payments with one-page checkout, plus a country selector. Other sellers get partial support.

CAD pricing: automatic, manual or fixed

Three ways to show CAD

Automatic exchange rates. Prices convert at the current market rate plus a conversion fee, and move with the rate.
Manual rate. In Markets, open Canada, click the currency, and in Exchange rate (FX) choose Manual and enter a rate. Prices stay stable; your gain or loss depends on the gap to the market rate.
Fixed prices. Set CAD prices per product through catalogs. Fixed international prices always override a manual rate.

Display prices in CAD

Display prices in Canadian dollars, so shoppers do no currency math. Turn on rounding so $43.17 becomes a clean price point.

In our accounts, a manual rate with rounding works best for a single store business. Prices stay steady, and you review the rate quarterly to match the market.

Currency and payouts

Customers pay in CAD, but Shopify payouts arrive in your store currency, with conversion fees between the two. Match Canada sales against payouts monthly, so the conversion cost shows up in your records.

Taxes at checkout, or Managed Markets

Shoppers in Canada dislike paying tax, import charges and brokerage at the door. Two Shopify services help sellers avoid it.

Collect import charges at checkout

Go to Settings > Taxes and duties and click Set up in Duties and import taxes. You need a DDP-capable carrier, HS codes and a made-in country on every product. Charges are calculated at checkout, and Shopify adds a transaction fee.

Managed Markets

Global-e becomes the merchant of record and ships DDP to most destinations, with the customer paying in CAD. It is open to businesses in the continental US with a US fulfillment location. You need Shopify Payments, USD as store currency, and a Basic plan or higher.

The fee is 3.25% on Plus and 3.5% on Basic, Grow or Advanced. A currency conversion fee and the Shopify Payments processing fee apply on top. US sellers can buy DHL Express, DHL eCommerce and FedEx labels through it.

Checkout shows a notice that the customer is buying from Global-e, and you cannot hide it. Orders need a customer phone number. Subscriptions and B2B orders are not supported.

If you register for GST/HST

Add the tax in Settings > Taxes and duties under Tax regions for Canada. Shopify does not file or remit tax for you.

Test checkout before real orders

Before the first real order, place a test order to an address in Canada. Check the currency, the shipping rate, and whether taxes are calculated as you expect. Fix anything confusing before customers see it.

Localize the Canadian experience

Small changes make a US store feel local in Canada:

A shipping page that states transit times and who pays tax at the border.
A contact page with returns details that make sense for Canada.
CAD prices, rounded, with the currency clearly shown.
A returns policy for Canada, since return shipping costs more across the border.

These steps cost little. They cut support emails and refused packages.

Track Canada separately

Track international orders to Canada apart from US orders. Shipping costs, refused packages and conversion fees all differ. A market can look busy and still lose money on costs.

In our accounts, we review Canada profit monthly: sales, shipping costs, fees and returns. Additional costs show up fast. If profit is thin, we focus on fewer, higher-value products. That is the practical way to decide.

When a Canadian fulfillment partner makes sense

A 3PL in Canada can cut delivery times and simplify returns. Orders fulfilled from locations in Canada change your business tax position and setup. Once your stock sits in Canada, the $30,000 CAD registration threshold applies.

It makes sense when Canada is a steady, large share of web sales. For a handful of international orders a month, keep them fulfilled from US locations.

Worked example: one Vermont store

A Vermont outdoor store sells a $120 USD jacket to a customer in Ontario. The jacket was made in Vietnam, so Canada’s US surtax does not apply.

By mail with nothing paid. The package passes $20 CAD, so HST at 13% and any tariff are due on arrival. Canada Post adds its $9.95 handling fee. The customer may refuse the package.

By UPS with DDP. The HST and any tariff are calculated and paid at checkout in CAD. The customer pays one price, with nothing owing. The store pays a little more in fees, but avoids a refused package.

The store chose DDP for orders over $40 CAD and mail for small ones. Sales to Canada stayed profitable.

What is the downside of Shopify for Canada?

There are a few practical limits for cross border sellers, and they matter to costs:

Canada Post DDP in Shopify covers only shipments to the USA, not into Canada.
Managed Markets adds 3.25% to 3.5% on top of processing and currency conversion fees.
Full multi-currency needs Shopify Payments.
Shopify does not file Canadian taxes for you if you register.

None of these stops a single store. They are costs to price in.

When Shopify’s route is wrong for one store

If Canada is a handful of orders a month, focus on simple international shipping and skip Managed Markets. Show CAD prices, use a courier, and state that customers may pay tax on arrival. Revisit when Canada becomes a steady share of the business, or when you put stock in a warehouse there.

Selling into Canada FAQ

Can a US Shopify store charge in Canadian dollars?

Yes, with Shopify Payments and a Canada market. Prices can convert automatically, use a manual rate, or be fixed per product.

Who pays GST on a parcel from the US?

The person who pays the import charges, usually the customer. If you ship DDP, it is paid at checkout and the carrier remits it.

Do Canadian customers pay import charges on every order?

No. Courier orders up to $40 CAD from the US are free of all charges. By mail, only orders of $20 CAD or less are.

Selling into Canada checklist

Confirm where goods ship from; stock held in Canada changes your GST/HST position.
Track Canadian sales against the $30,000 CAD threshold if any stock sits in Canada.
HS code and made-in country on every product.
Check US-made goods against Canada’s surtax schedules.
Canada market created, shipping rates set, then activated.
CAD pricing method chosen, with rounding on.
Taxes collected at checkout, Managed Markets, or a clear notice that customers pay on delivery.
Courier preferred over mail for international shipping above $20 CAD.
Test order placed before launch.
International orders to Canada reviewed monthly for profit, with documents kept.