Taxes in Canada (for Intra-Canada orders)

Tax on orders shipped in Canada

GST (Goods and Services Tax)/HST (Harmonized Sales Tax), QST (Quebec Sales Tax) and/or PST (Provincial Sales Tax) may be applied to your order based on the province that your order is shipped to. Where applicable, tax will be shown on the order invoice that is issued by Faire to retailers on behalf of brands.

Please see in the table below an overview of the current applicable taxes and tax rates in each province.

¹ PST is charged where a retailer does not provide Faire with a PST registration number

² PST is referred to as RST in Manitoba

Application of these taxes on your orders depends on your tax registration status:

• If you’re GST/HST/QST registered: If you’ve entered your GST/HST/QST registration number in your Export & Taxes tab, we will include any tax collected for your orders that are shipped in Canada in your order payout, so that you can pay this tax to the relevant Canadian authorities.

• If you’re not GST/HST/QST registered: Due to updated Canadian tax regulations, marketplaces like Faire are required to collect and pay the applicable taxes to the relevant Canadian tax authorities on supplies made by non-registered suppliers to customers in Canada. As such, if you have not entered a GST/HST/QST registration number in your Export & Taxes tab, we will collect the tax for your orders that are shipped in Canada, so that we can meet this requirement. The tax amount will not be included on your order payout.

What if my products are subject to a 0% tax rate (zero-rated)?

Certain products in Canada are considered zero-rated (taxed at 0%). If you’re unsure whether your products qualify as zero-rated, we recommend consulting your tax advisor. Once you’ve confirmed that you have products that are zero-rated, you can adjust the tax rate for those products in your portal. Please follow the steps below to do this:

1. Navigate to the Products page in your Faire portal.
2. Select the product that needs its tax rate updated.
3. On the product editor, scroll down to the Pricing & Taxes section. If we have your Canadian tax registration number on file with us, you will see an option to select a reduced tax rate for the product.
4. If applicable, select the correct reduced tax rate from the drop down menu. If you do not select anything, the standard rate of tax will automatically apply.
5. Select the Update button in the top right corner of the editor to save any changes.

Please note that we will not automatically update these tax rates so please ensure that you are updating your products accordingly.

If you had received orders that had incorrect taxes applied to them before you had the chance to update your products, we would be happy to provide a refund to retailers that were incorrectly charged sales tax on your products that are zero-rated. For these situations, please reach out to our support team with the applicable order numbers and we will be happy to assist further.

Tax on commission for Canadian brands

Faire, as a marketplace, provides a platform service to brands, in exchange for which it charges a commission fee. Faire issues an invoice to brands (referred to as a commission invoice) which shows the commission charged by Faire to brands per order, and it will also show other fees charged by Faire to brands for additional services, where applicable. This invoice can then be used by brands to reconcile to their payout summary.

Depending on the location of the brand, Faire may be required to collect and remit tax - such as GST/HST, and QST - on fees charged to Canadian brands in certain circumstances. Where applicable, this tax will be included on the invoice that is issued by Faire to the brand by reference to the province that the brand is located in.

Please see in the table below an overview of the current applicable taxes and tax rates in each province.

How to check if you’re eligible to reclaim tax on commission

• Brands who are registered for GST/HST and QST should generally be entitled to recover this tax by reclaiming it as an input tax credit, or ITC, in the relevant tax return. See Canada’s Revenue Agency for more information on how to recover GST/HST as an ITC, and Revenue Quebec for more information on how to recover QST as an ITC.

• Brands who are not registered for tax can consider their entitlement to register, so that they can start reclaiming ITCs. Please consult a tax advisor for more advice on this topic.

Are promoted listings charges taxable in Canada?

Yes, charges for promoted listings will be taxable at the same tax rates applied to your commission. Please see the table above for more details on the tax rates for your province. The tax amount will also appear on your promoted listings invoice for each month. To view an invoice, follow the steps below:

1. Go to Account settings
2. Select the Billing tab
3. Under the Billing history section, select an invoice to view