How to Charge PST in GST-Exempt Canadian Stores on Shopify

Updated: November 08, 2021

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In this post, I’m going to talk about how to charge PST in GST-exempt Canadian stores on Shopify. According to the federal government of Canada, if your store is based in Canada and has the annual sales of less than the threshold of $30,000, usually it is exempt from GST.

However, the PST - provincial sales tax might still be charged. These taxes are then remitted to the appropriate government. This is why you have to make sure your sales taxes are charged and remitted correctly in the jurisdiction you sell or ship your products.

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On Shopify, you can only set up your sales taxes to charge PST. This article would provide you a clear guideline on how to charge PST in GST-exempt Canadian stores on Shopify.

How to charge PST in GST-exempt Canadian stores on Shopify

Step 1: Make sure that both your store address and your shipping zones are in Canada

Only stores located in Canada are exempt from GST, according to the federal government of Canada. So first and foremost, make sure that your store address and shipping zones are both in Canada.

Step 2: Settings > Taxes > Canada

From your Shopify admin, visit Settings in the bottom left, then go to Taxes. In the Taxes window, scroll down to the Tax rates section and select Canada.

Step 3: Make sure the Country Tax is set at the default amount of 5% in Base taxes

Under Base taxes, make sure the Country Tax is set at the default amount of 5%.

Step 4: Reset the tax rate for the province you sell or ship to and select this option

Reset the tax rate for the province you sell or ship to the appropriate rate, then fill in PST or a name for the tax. Select this option instead of the 5% federal tax.

Step 5: Click Save

Once you are done, click Save.

Conclusions

Those are the few steps that guide you through How to charge PST in GST-exempt Canadian stores on Shopify.

If this instruction was of great help to you, then do look for more articles like this at our Help Center.

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