What Is Canada GST?
Canada GST, fully known as Goods and Services Tax, is a value-added tax levied at the federal level in Canada and administered by the Canada Revenue Agency (CRA). Some provinces also have Provincial Sales Tax (PST) or Harmonized Sales Tax (HST).
Businesses engaged in taxable business activities, selling goods, or providing services in Canada must register for GST/HST once they reach the applicable revenue threshold, and must collect, report, and remit GST on qualifying transactions. For import operations, GST reporting and payment also apply when goods enter Canadian customs.
Simply put, Canada GST is not an ordinary business license — it is a **consumption tax registration and tax filing identity identifier** for businesses operating in Canada: without a GST registration number, a business cannot legally collect consumption tax, issue Canada-recognized tax invoices, or properly claim input tax credits and file tax returns.
