---
title: "GST on Export of Services and Goods: Zero-Rating in Canada"
url: https://www.everstonecpa.com/blog/gst-hst-on-exports-and-non-residents
description: "GST/HST on exports of goods and services: when an export is zero-rated, who pays tax on a sale to a non-resident, and the proof to keep. See it."
type: guide
updated: 2026-10-08
summary: "Goods exported from Canada and many services supplied to non-resident customers are zero-rated, meaning tax is charged at zero per cent while input tax credits remain claimable. Zero-rating depends on meeting specific conditions and keeping satisfactory evidence of export or non-residence."
faq_count: 11
publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta
service_area: British Columbia, Alberta, Ontario and Manitoba
language: en-CA
contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online
---

[Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) GST/HST on Exports and Non-Resident Customers


GST/HST 

# GST/HST on exports and *non-resident customers*


By EverStone CPA · Updated August 2026 · 9 min read







**Quick answer:** Goods exported from Canada and many services supplied to non-resident customers are zero-rated, meaning tax is charged at zero per cent while input tax credits remain claimable. Zero-rating depends on meeting specific conditions and keeping satisfactory evidence of export or non-residence.

**Selling to clients outside Canada?** We zero-rate the exports that qualify, keep the evidence the CRA asks for and file every return, with GST/HST filing included in bookkeeping from $325 a month. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form)


Zero-rating stands or falls on the proof kept at the time of supply. [Ask about a specific customer](https://www.everstonecpa.com/quick-question).



## GST/HST on sales to non-residents: zero-rated, exempt, or neither




GST/HST treatment of exports and supplies to non-residents 

| What you supplied | Treatment | What it turns on | 


| Goods exported from Canada | **Zero-rated** | Evidence that the goods actually left Canada | 

| Services supplied to a non-resident customer | **Zero-rated** in many cases | Evidence of non-residence, and the service must meet the conditions | 

| Intangibles — software, licences, rights | Depends on the terms | Where the right may be used, and who the customer is | 

| Exempt supplies (a different thing entirely) | No tax charged | And **no input tax credits**. This is the distinction that costs money | 





Zero-rated and exempt differ: zero-rating charges no tax and keeps input tax credits; exempt loses them. The third column is what a review asks about, because zero-rating survives on evidence.



Zero-rating survives on evidence, not on intention.



## Key takeaways



- Exports are usually **zero-rated**, not exempt — input tax credits stay claimable.

- For goods, zero-rating turns on **who moves them out of Canada and how**.

- Services to non-residents are zero-rated only where they fall within a **specific list**.

- A service supplied to an individual **while that individual is in Canada** is generally outside the relief.

- The relief lives or dies on **documentation**: export evidence, residency and registration status.


Selling outside Canada usually means not charging GST/HST, but the rules still apply. Zero-rating has conditions, and they are almost always about evidence: proving the goods left, or that the customer was an unregistered non-resident.


**On this page**[Zero-rated, not exempt](#s-zero-rated-not-exempt)[Exported goods](#s-exported-goods)[Exported services](#s-exported-services)[Intangibles: software, licences and rights](#s-intangibles-software-licences-and-rights)[The evidence file](#s-the-evidence-file)[Frequently asked questions](#s-frequently-asked-questions)[Selling to customers outside Canada?](#s-selling-to-customers-outside-canada) **Selling outside Canada?** We confirm which sales are zero-rated, keep the export evidence file and file the GST/HST returns, as part of bookkeeping from $325 a month. See [how we file GST/HST](https://www.everstonecpa.com/gst-hst-filing-services), or [get a GST quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form). [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form)



## Zero-rated, not exempt


Same invoice, different return. A **zero-rated** supply is taxed at zero: you charge nothing and still claim [input tax credits](https://www.everstonecpa.com/blog/input-tax-credits-itc-canada-guide). An **exempt** supply has no tax and no credits. Export relief is almost all zero-rating, so exporters often sit in a refund position. See [zero-rated versus exempt supplies](https://www.everstonecpa.com/blog/zero-rated-vs-exempt-supplies-gst-hst-canada).



## Exported goods


Where goods are supplied in Canada and then exported, the CRA describes three general routes to zero-rating.



### 1. You ship them out


It is zero-rated where the supplier ships the goods to a destination outside Canada named in the contract for carriage, hands them to a common carrier or consignee retained to ship them out, or mails or couriers them abroad. Shipping documents are the evidence.



### 2. The customer collects in Canada and exports


Harder, because the goods sit in Canada in the customer’s hands before leaving. All of the following must hold:




- the goods are **not excisable goods** such as beer, spirits, wine or tobacco;

- the purchaser is **not a consumer** — generally, not an individual buying for personal use;

- the purchaser **exports the goods as soon after delivery as is reasonable** in the circumstances;

- the purchaser does not acquire them **to consume, use or supply in Canada** before exporting;

- the goods are **not further processed, transformed or altered** in Canada before export, except to the extent reasonably necessary or incidental to transporting them; and

- the supplier **keeps satisfactory evidence, for audit purposes, that the purchaser exported the goods**.



### 3. An export certificate


A purchaser registered for GST/HST can apply for authorization to issue an export certificate to the supplier, which causes the goods to be zero-rated. There is also a separate Export Distribution Centre Program for authorized export-oriented, non-manufacturing businesses.


**If the conditions are not met, the tax applies.** The supplier has to charge it and the purchaser has to pay it, and on a reassessment years later, the supplier is the one holding the bill. That is why the export evidence file matters more than the invoice wording.



Not sure how this applies to you?


Every business’s situation is different. Send an enquiry to a CPA and get a straight answer, plus a fixed quote before any work starts.



[Send an Enquiry →](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form)
[GST/HST filing](https://www.everstonecpa.com/gst-hst-filing-services)



## Exported services


Two easy cases: no GST/HST on services performed **totally outside Canada** or relating to **real property situated outside Canada**. Neither is an export rule; they are outside the tax base.


Harder: services performed partly or wholly *in* Canada for a non-resident. Some are zero-rated unless supplied to an individual in Canada. The CRA’s list includes:




- certain **advisory, professional or consulting services**;

- advisory, consulting or research services to help a non-resident **establish a residence or business in Canada**;

- **advertising services** supplied to a non-resident who is not registered for GST/HST;

- **custodial or nominee services** for a non-resident’s securities or precious metals;

- services of **acting as an agent** for a non-resident, or arranging, procuring or soliciting orders, in defined circumstances;

- services supplied to a non-resident **by electronic means**;

- **warranty services and parts** supplied to meet a warranty obligation for an unregistered non-resident;

- certain **training services** supplied to an unregistered non-resident, other than to individuals; and

- services of **destroying, discarding, dismantling, testing or inspecting** goods in defined circumstances.


Services performed on goods that were temporarily imported solely to have the service performed on them, and that are exported as soon as possible, may also be zero-rated, along with the parts supplied with them. Whether GST for export of services is charged turns on where the service is performed and whether the customer is a non-resident, as set out above.



## Intangibles: software, licences and rights


Intangible personal property is generally a right rather than a physical thing — contractual rights, options, intellectual property, licences. The rules follow a different logic:




- A supply of intangible property that **may not be used in Canada** is considered made outside Canada, so GST/HST does not apply at all.

- A supply of **intellectual property**, such as a patent or trademark, or the right to use it, is zero-rated if made to an **unregistered non-resident**.

- Most other intangible property supplied to unregistered non-residents is zero-rated, with exceptions, including supplies to an individual unless that individual is outside Canada when the supply is made, property relating to real property in Canada or to goods ordinarily in Canada, property relating to a non-zero-rated Canadian service, and property usable only in Canada.



## The evidence file


For goods, keep bills of lading, carrier and customs documents, courier tracking, and contract terms placing the destination abroad. For intangibles, suppliers must **verify and maintain satisfactory evidence of the customer’s registration status and residency at the time the supply is made**, plus physical location for non-IP intangibles. Normal [record retention rules](https://www.everstonecpa.com/blog/cra-record-retention-how-long-to-keep-records) apply. Zero rated exports hold up only when this evidence is kept at the time of supply, not assembled after the CRA asks.


A non-consumer non-resident purchaser may also claim a rebate of tax paid on qualifying goods exported within 60 days of delivery, among other conditions. If avoidable tax was charged, that rebate may be the customer’s route back.


Domestic sales follow the [place-of-supply rules](https://www.everstonecpa.com/blog/gst-hst-place-of-supply-rules-canada) instead. If you sell both ways, especially as an [online seller](https://www.everstonecpa.com/accountant-for-ecommerce) shipping in several directions, map each revenue stream once rather than deciding invoice by invoice.


Whether any of this applies to you turns on your year-end, your structure and what else is in the picture — [ask about your own situation](https://www.everstonecpa.com/quick-question) and a CPA replies, usually the same business day. Free either way.




Sources




- [Canada Revenue Agency — GST/HST imports and exports](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-imports-exports.html)

- [CRA Guide RC4022 — General Information for GST/HST Registrants](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022/general-information-gst-hst-registrants.html)

- [Canada Revenue Agency — GST/HST for businesses](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html)





The same foreign invoices raise an income-tax question about currency movement — see [how FX gains and losses are taxed](https://www.everstonecpa.com/blog/foreign-exchange-gains-losses-business-canada).


About this article

**EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. [About the firm →](https://www.everstonecpa.com/about) · [Send an enquiry →](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form)


This article is general information, not tax advice for your specific situation. Tax rules and CRA administrative positions change — confirm anything that affects a decision with the CRA or with us first.


Sales tax is only half of the cross-border picture. Paying a non-resident for work performed inside Canada raises an income tax withholding of its own. See [Regulation 105 withholding](https://www.everstonecpa.com/blog/non-resident-withholding-regulation-105).


Zero-rated sales still go on the return, with the proof of export kept on file; [our GST/HST filing work](https://www.everstonecpa.com/gst-hst-filing-services) includes checking that the documentation is there before a return claims the rate.



### Keep reading


[Zero-rated vs exempt supplies →](https://www.everstonecpa.com/blog/zero-rated-vs-exempt-supplies-gst-hst-canada)
[Place-of-supply rules →](https://www.everstonecpa.com/blog/gst-hst-place-of-supply-rules-canada)
[Claiming input tax credits →](https://www.everstonecpa.com/blog/input-tax-credits-itc-canada-guide)[One question, answered by a CPA →](https://www.everstonecpa.com/quick-question)[NR4: Payments to Non-Residents →](https://www.everstonecpa.com/forms/nr4)[How to change your GST/HST filing frequency (and when you can’t) →](https://www.everstonecpa.com/blog/change-gst-hst-filing-frequency)[Inter-Corporate Dividends in Canada: Tax-Free, With Conditions →](https://www.everstonecpa.com/blog/inter-corporate-dividends-canada)










## Where we work


Zero-rating is a federal rule, and the engagement is the same wherever you invoice from. We work with businesses in [Abbotsford](https://www.everstonecpa.com/accountant-abbotsford), [Chilliwack](https://www.everstonecpa.com/accountant-chilliwack), [Langley](https://www.everstonecpa.com/accountant-langley) and [Mission](https://www.everstonecpa.com/accountant-mission), across [the Fraser Valley](https://www.everstonecpa.com/accountant-fraser-valley), and with owner-managed companies in [Vancouver](https://www.everstonecpa.com/accountant-vancouver).






FAQ 


## Frequently asked questions




**Are exports free of GST/HST?**

Most are zero-rated, not exempt. A zero-rated supply is taxable at zero per cent: the customer pays no tax, and the supplier still claims input tax credits on its costs. An exempt supply would carry no credits at all.



**When are exported goods zero-rated?**

Broadly, where the supplier ships them to a destination outside Canada named in the contract for carriage, hands them to a common carrier or consignee retained to export them, or mails or couriers them abroad. A purchaser can also take delivery here and export them, subject to conditions.



**What conditions apply if the customer picks the goods up in Canada?**

The goods can’t be excisable and the purchaser can’t be a consumer. The purchaser must export them promptly after delivery, without using, supplying or processing them in Canada beyond what transport requires. The supplier must keep satisfactory audit evidence of export.



**Which services to a non-resident are zero-rated?**

No GST/HST applies to services performed totally outside Canada or relating to real property abroad. Some services to a non-resident (not an individual in Canada) may be zero-rated even if performed here, including certain advisory, professional or consulting services and advertising for unregistered non-residents.

**Do I charge GST on services exported outside Canada?**

Often not. Services performed totally outside Canada carry no GST/HST, and many services to non-residents are zero-rated at 0%, with credits still claimable. Check the table first. [Ask about your case →](https://www.everstonecpa.com/quick-question)



**What about intellectual property and other intangibles?**

A supply of intangible personal property that may not be used in Canada is considered to be made outside Canada and is not subject to GST/HST. A supply of intellectual property, or the right to use it, is zero-rated if made to an unregistered non-resident. Most other intangible personal property supplied to unregistered non-residents is zero-rated, with several listed exceptions.



**What evidence does the CRA expect me to keep?**

For exported goods, keep satisfactory audit evidence of export. For intangibles, verify and keep evidence of the customer’s GST/HST registration and residency at the time of supply, plus physical location for intangibles other than intellectual property.

**Are exports zero-rated or exempt?**

Zero-rated, where conditions are met: 0% GST/HST with input tax credits still claimable, unlike exempt. [The difference, in full](https://www.everstonecpa.com/blog/zero-rated-vs-exempt-supplies-gst-hst-canada). [Ask about your case →](https://www.everstonecpa.com/quick-question)

**Who pays tax on goods exported from Canada?**

Canada generally does not tax the export itself: a qualifying export carries 0% GST/HST. Duties and sales taxes are charged by the destination country on import, and the sale contract decides whether the buyer or the seller bears them. [Ask about your case →](https://www.everstonecpa.com/quick-question)



**How do I calculate GST on an invoice to a customer outside Canada?**

A qualifying zero-rated export is invoiced at 0% GST/HST, and you still claim input tax credits. Otherwise, charge the place-of-supply rate. Keep evidence the goods left Canada or the customer is a non-resident.



**How do you calculate GST on a Canadian invoice?**

Multiply the taxable price by the rate for the place of supply and show the tax as its own line. The CRA’s [GST/HST rates table](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate/calculator.html) gives 5% GST in British Columbia, Alberta and Manitoba and 13% HST in Ontario. A qualifying zero-rated export is invoiced at 0%, and you still claim input tax credits on your costs.










## Selling to customers outside Canada?


Tell us what you sell and where your customers are. A CPA replies by email within one business day with which supplies are zero-rated and a fixed fee for the filings.


[Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call)





## Have a question about this?


Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies within one business day. An **Advice Call** is a paid 45-minute CPA session: $225 plus GST, booked by email with a secure payment link, credited to your first invoice if you become a client within 60 days. Need it handled? [Send an enquiry](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form).



[Ask a Free Question](https://www.everstonecpa.com/quick-question)
[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call)
Email info@everstonecpa.com



★★★★★

“…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!”

R. H. · Google review











**Run your own numbers with the free calculators:**
[check your GST/HST math](https://www.everstonecpa.com/gst-hst-calculator) · [run the incorporate-or-not numbers](https://www.everstonecpa.com/incorporation-calculator) · [Payroll deduction calculator](https://www.everstonecpa.com/payroll-deduction-calculator) 


[← GST/HST instalments: the quarterly payments annual filers forget about](https://www.everstonecpa.com/blog/gst-hst-instalments-annual-filers-canada)
[Place of supply: which province’s rate do you charge? →](https://www.everstonecpa.com/blog/gst-hst-place-of-supply-rules-canada)

More on this subject: [the GST/HST library](https://www.everstonecpa.com/gst-hst-hub).

---
Source: https://www.everstonecpa.com/blog/gst-hst-on-exports-and-non-residents
Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online