# Taxes on Stripe fees for businesses based in Canada

### Why am I being charged GST / HST?
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 Stripe Sigma, are subject to GST/HST. We apply these taxes as required to Stripe account holders in Canada. We charge GST/HST on sales of Terminal hardware and accessories based on the ship-to address of each order.
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](https://dashboard.stripe.com/account) 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
* 14% (HST) in Nova Scotia
* 15% (HST) in New Brunswick, Newfoundland and Labrador, and Prince Edward Island
### Why am I being charged QST (Quebec Sales Tax)?
Starting **May 1, 2026**, if your principal place of business is in Quebec, for taxable supplies Stripe will also charge QST in addition to the 5% GST. The current QST rate is 9.975%.
### Why am I being charged PST (provincial sales tax)?
Software-as-a-Service (SaaS) products, which include revenue products like Billing, Fraud prevention products like Radar, financial products like Tax, and data products like Sigma, are subject to PST in certain provinces.
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.
As of January 1, 2026, if your principal place of business is located in Manitoba, we will charge PST to your account on taxable supplies.
We will also 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:
* BC - British Columbia - 7% PST
* SK - Saskatchewan - 6% PST
* MB - Manitoba - 7% PST
### Does the tax change impact sales that I make to my customers?
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.
### What services will be tax exempt?
Payment processing fees charged to you by Stripe will be tax exempt.
### We're based in Canada, however, the majority of our business is outside Canada, so we don't charge tax. How do we proceed without Stripe collecting taxes?
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.
### What is a tax invoice?
Tax invoices are monthly documents issued to account holders in Canada which outlines the fees subject to GST/HST, and where applicable, PST.
Maintaining tax invoices 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.
### Who can I contact about Stripe’s tax policy?
If you have further questions on Stripe’s tax policy (for example, if you believe you’re exempt from tax), contact us. Stripe cannot provide tax advice. We recommend that you speak with a tax advisor for more assistance.
Learn more by checking out the articles below:
Global Taxation of Stripe fees
Tax Invoices
Download tax invoices for Stripe fees
Understanding your monthly tax invoice