Canada Sales Tax

Introduction

From July 1st 2026 we are now handling sales tax in Canada on your behalf. We have become entirely responsible for collecting and paying GST/HST and PST. We're still in the process of registering for QST and so you'll need to continue handling Quebec sales tax for now if you're required to.

Why does Payhip handle Canadian sales tax

Tax laws in Canada affect platforms like Payhip where the responsibility for tax compliance would shift from the creator to us. We are defined as a digital platform operator in Canada. This means we would have the obligation of collecting and paying sales tax instead of you as the creator.

Tax settings

You can choose if you'd like sales tax to be added on top of your product price or included within it.

Please visit your Tax Settings page, scroll down to the bottom of the page and you'll see the field "If sales tax (VAT) is required for a transaction choose a flow below" which has the following options:

Add sales tax on top of product price
Include sales tax within product price

Quebec

Our registration for QST is taking longer than expected, so for the next few weeks you'll need to continue handling Quebec sales tax yourself. This is only if you're already QST registered and have an obligation to handle Quebec sales tax for your transactions. Please email contact@payhip.com for further guidance on this.

Already registered for GST?

If you're already registered for GST you would need to fill in the GST506 form jointly with us.

This form is jointly signed by you and a member of the Payhip team. This form isn't submitted to the CRA, instead we would both keep a record of this form to confirm that you've transferred your GST responsibility to Payhip.
We would need you to fill out:

Part A with the legal name of your entity and Business Number
Part C with the nature of what you are selling, and the date the election is in effect
Part D with you name and signature

Once you complete this and send it back to us, our team will complete the rest of the form. We will then provide you with a completed copy for your records and our own.