Do I need to charge GST/HST if I sell products online in Canada?

Yes, once your annual revenue exceeds $30,000, you must register for GST/HST and charge 5% GST (or the HST rate for the customer's province) on taxable supplies to Canadian customers. Digital products have specific place-of-supply rules. We set up your GST/HST correctly for your specific product mix and customer geography.

How do I account for Amazon FBA inventory?

Amazon FBA creates complex inventory accounting challenges: inventory sent to Amazon fulfillment centres is still your asset, Amazon fees reduce your net revenue, and FBA-related storage, fulfillment, and return costs are all deductible. We set up your QuickBooks or Xero to accurately capture all of these moving parts.

My Shopify store sells to U.S. customers. Do I charge them GST/HST?

No. Exports to non-Canadian customers are zero-rated for GST/HST purposes. You do not charge Canadian customers' GST on sales to U.S. or international buyers, but you still need to track these sales separately in your bookkeeping. You may still have U.S. sales tax obligations depending on your U.S. nexus; a separate analysis is needed.

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E-Commerce Accounting

E-Commerce Accounting Calgary: Tax & Bookkeeping for Online Sellers

CPA services for Calgary Shopify, Amazon, WooCommerce, and online business owners. GST/HST on digital sales, inventory accounting, multi-currency bookkeeping, and seller tax returns.

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Industry-Specific Accounting for E-Commerce Accounting

Online selling has exploded in Canada, and so has the complexity of e-commerce taxation. GST/HST obligations for digital and physical product sales, inventory accounting across multiple platforms, multi-currency transactions, marketplace platform fees as deductions, and cross-border sales: these are challenges that require a CPA experienced with e-commerce.

Finsight Accounting works with Calgary e-commerce entrepreneurs selling on Shopify, Amazon, Etsy, eBay, WooCommerce, and direct DTC channels. We set up clean bookkeeping systems that capture all revenue streams and deductible costs, prepare accurate GST/HST returns for multi-channel sellers, and optimize the overall tax structure for your online business.

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Key Tax & Accounting Issues for E-Commerce Accounting

GST/HST on Digital & Physical Sales

Canadian sellers must charge GST/HST to Canadian customers based on the destination province's rate. The rules for digital products and cross-border sales to the U.S. and international customers are different, and frequently misapplied.

Inventory Accounting

E-commerce inventory requires careful accounting: tracking cost of goods sold (COGS), calculating ending inventory values, and managing write-downs for unsold or damaged stock.

Multi-Currency Transactions

Sellers receiving USD or other foreign currencies must convert transactions to CAD at the Bank of Canada rate for the transaction date, a process that requires proper bookkeeping configuration.

Platform Fees as Deductions

Shopify subscription fees, Amazon seller fees, PayPal and Stripe processing fees, and marketplace commissions are all deductible business expenses. We ensure every platform cost is captured correctly.

Home Office & Shipping Deductions

Home-based e-commerce sellers can deduct a portion of home operating costs, vehicle expenses for inventory pickup, shipping supplies, and all other business costs.

Incorporation Decision

When your e-commerce revenue reaches a level where personal tax rates become punishing, incorporating your online business can provide significant tax deferral benefits.

Our Services for E-Commerce Accounting

E-Commerce Bookkeeping

Multi-platform bookkeeping for Shopify, Amazon, WooCommerce, and other e-commerce sellers.

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Personal & Corporate Tax

Tax returns for e-commerce sole proprietors and incorporated online businesses.

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Inventory & COGS Accounting

Setting up proper inventory tracking and COGS reporting for product-based online businesses.

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E-Commerce Accounting: Frequently Asked Questions

Disclaimer: Industry-specific information on this page is general guidance only and reflects tax rules current at time of writing. It is not professional advice and does not create a CPA-client relationship. Consult a licensed CPA for advice specific to your business.

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Calgary E-Commerce Tax & Accounting

Experienced e-commerce bookkeeping and tax from a Calgary CPA who understands online selling. Get in touch.