Canada Sales Tax

Introduction

From July 1st 2026 we are now handling sales tax in Canada on your behalf. We have become responsible for collecting and paying GST/HST and PST. However you will need to continue to handle QST yourself if you're required to handle sales tax in the province.

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

One exception in Canada is Quebec, you will still need to report, collect and remit QST yourself if you are obliged to. Outside of Quebec though we will be responsible for GST/HST and PST.

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.