Canadian indirect taxes | Frequently asked questions
Last updated: June 15, 2021
Please note: this article has been prepared for informational purposes only. It is not intended to provide, and should not be relied on as tax advice. For any questions you should consult your own tax and/or legal advisors.If you’re a HubSpot customer in Canada, learn how HubSpot handles indirect taxes per province and territory, and how you can update HubSpot with your tax information.
Which indirect taxes does HubSpot collect from Canadian customers?
Depending on your province or territory, HubSpot may need to collect Goods and Services Tax (GST), Harmonized Sales Tax (HST), Provincial Sales Tax (PST), or Quebec Sales Tax (QST).
- Goods and Services tax: as of July 1, 2021, HubSpot will begin charging GST. This tax generally applies to goods and/or services that are sold and supplied into Canada. This includes intangible personal property such as trademarks, rights to use a patent, and digitized products. GST is separate and in addition to the provincial level sales tax (PST), on most goods and services that are bought and sold for use or consumption within Canada. Generally, GST is invoiced by the supplier of goods or services, then collected from the customer, and remitted to the tax authorities. Learn more about GST.
- Harmonized Sales Tax: as of July 1, 2021, HubSpot will begin charging HST. This tax includes both the federal GST and any additional provincial sales tax that has been combined with the federal GST. HST applies only to participating provinces in Canada. Generally, HST applies to the same base of property (i.e., tangible and intangible) and services as GST, however at a different rate. The HST rate can vary from one participating province to another. Learn more about HST.
- Provincial Sales Tax: as of April 1, 2021, HubSpot began charging PST. This tax is generally due when goods and/or services are sold and supplied into British Columbia and Saskatchewan. PST is separate and in addition to the GST. Generally, PST is invoiced by the supplier of goods or services, then collected from the customer, and remitted to the tax authorities. The PST imposed by British Columbia and Saskatchewan is not a recoverable tax. Learn more about PST for British Columbia and Saskatchewan.
- Quebec Sales Tax: as of July 1, 2021, HubSpot will begin charging QST. This tax generally applies to goods and/or services that are sold and supplied into Quebec. This includes intangible personal property such as trademarks, rights to use a patent, and digitized products. QST is separate and in addition to the goods and services tax (GST), on most goods and services that are bought and sold for use or consumption within Quebec. Generally, QST is invoiced by the supplier of goods or services, then collected from the customer, and remitted to the tax authorities. Learn more about QST.
The GST/HST and QST imposed by Canada is a recoverable tax. GST/HST and QST registrants can generally claim an input tax credit (ITC) on those taxes incurred in the course of a commercial activity. In other words, GST/HST and QST is usually not a net cost to registered businesses. For more specifics on the recoverability of GST/HST and QST charged by HubSpot, please speak to your tax advisor.
Who is liable to pay GST/HST/PST/QST in Canada?
HubSpot will collect indirect taxes on all customers whose shipping address is located in Canada. Learn how to check what your primary company address is set to in HubSpot.
Some exemptions may be applicable, such as the sale to First National individuals or bands. There are no exemptions available from indirect taxes applicable for charities. However, depending on their status, charities may be allowed to reclaim from the government a part of the GST/HST paid on their expenses.
Some exemptions for PST may be applicable, such as the sale for resale.
Why is there a GST/HST/PST/QST charge on my HubSpot invoice?
HubSpot is required to collect and remit GST/HST/PST/QST for customers who are located in Canada.
What is HubSpot's GST/HST account number?
HubSpot's GST/HST account number is 793763004RT0001.
What if I have a GST/HST/PST/QST exemption and forget to provide it?
Generally, GST/HST/PST/QST will be applied to all invoices where the exemption has not been provided in a timely manner. If you can provide a valid exemption covering the service period, please submit the proper supporting documents to email@example.com. The deadlines for providing supporting documentation are as follows:
- GST/HST/QST exemptions: submit your information within 30 days of the invoice issuance date.
- PST exemptions: submit your PST ID or exemption certificate within 180 days (British Columbia) or 30 days (Saskatchewan) of the invoice issuance date.
Are there any GST/HST or QST obligations for me as a customer?
No. If you want to claim an input tax credit for the GST/HST paid to HubSpot, ensure that you keep a copy of HubSpot’s invoice for your records.
Why is the PST ID section blank on my invoice?
The PST ID section will only have a value if you're a tax exempt customer. If you're not a tax exempt customer, you don't need to provide HubSpot with a PST ID and you may disregard this section.
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