Software-as-a-Service (SaaS) products, which include revenue products like Billing, fraud prevention products like Radar, reporting products like Tax, and analytics products like Sigma, are subject to GST/HST. Starting June 1, 2023, we will begin applying these taxes as required to Stripe account holders in Canada. We’re currently charging GST/HST on sales of Terminal hardware and accessories (based on the ship-to address of each order), and will continue to do so.
You may be entitled to an input tax credit (ITC) for GST/HST, and we will provide you with a valid tax invoice for your records. If you have any queries in relation to your entitlement to reclaim GST/HST, we recommend consulting with your accountant or tax advisor.
The tax rate that applies to your account depends on the province or territory of your business address under the Business Settings in your dashboard. The current rates are:
5% (GST) in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon
13% (HST) in Ontario
15% (HST) in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island
Software-as-a-Service (SaaS) products, which include revenue products like Billing, fraud prevention products like Radar, reporting products like Tax, and analytics products like Sigma, are subject to PST in certain provinces. Starting June 1, 2023, if your principal place of business is located in British Columbia or Saskatchewan, we will charge PST to your account. This PST is in addition to the 5% GST that will be charged in these provinces.
We will continue to charge PST on sales of Terminal hardware and accessories shipped to addresses in British Columbia, Saskatchewan, and Manitoba.
The current rates for the provinces where Stripe is required to collect PST are:
BC - British Columbia - 7% PST
SK - Saskatchewan - 6% PST
MB - Manitoba - 7% PST
No, this change pertains solely to Stripe Fees that we charge for the products and services that Stripe provides to you.
Merchant acquiring/payment processing service provided by Stripe to you in Canada are not impacted and continue to be treated as exempt (not subject to tax).
You will be charged GST/HST, and PST where applicable, on Stripe fees for SaaS products provided by Stripe. You will receive a tax invoice detailing the taxes and amounts charged by Stripe to you. You may be able to recover the GST/HST charged based on your Canadian registration status.
Payment processing fees charged to you by Stripe will be tax exempt.
Stripe Payments Canada Ltd is registered for taxes in Canada so we will therefore charge and collect taxes on fees to Stripe merchants in Canada as required.
Tax Invoice is a monthly document issued to account holders in Canada which outlines the fees subject to GST/HST, and where applicable, PST.
Maintaining this Tax Invoice is one of the requirements to receive an input tax credit (ITC) for GST/HST. If you have any queries in relation to your entitlement to reclaim GST/HST, we recommend consulting with your accountant or tax advisor. For more information, see our support page
If you have further questions on Stripe’s tax policy (e.g., if you believe you’re exempt from tax), please contact us. Please note that Stripe cannot provide tax advice. We recommend that you speak with a tax advisor for more assistance.