Who the simplified account is for
The simplified account is part of the GST/HST measures for the digital economy, which have applied since July 1, 2021. It is designed for businesses that are not resident in Canada and that sell taxable digital products or services to Canadian consumers and to Canadian entities that are not registered under the normal system. It also applies to platform-based short-term accommodation. Businesses that supply qualifying goods in Canada cannot use it and must register under the normal regime.
For most Ontario readers this is a neighbouring concept rather than a registration option. If you live in Ontario and operate a business here, your registration question is the ordinary one, which turns on the small-supplier threshold and your own circumstances. You cannot choose the simplified account to make the paperwork lighter.
How it differs from a normal account
The CRA describes several features. The registration threshold is $30,000 CAD, and a new business can give a reasonable estimate. The fiscal year always ends on December 31, and remittances follow calendar quarters. For cross-border digital supplies, the registrant charges tax only on specified supplies made to specified Canadian recipients, at a rate that depends on where the supply is made. No input tax credits can be claimed, which makes the net tax calculation simpler. No security deposit is required, and an application can be made to calculate and remit in a qualifying foreign currency.
A business required to use the simplified account may, if it meets certain conditions, apply to register under the normal system instead. It cannot hold both at the same time. Registration is done through a CRA online form that cannot be saved part-way and that times out after 30 minutes of inactivity, so the information has to be gathered first.
An illustrative example
Suppose a software company based outside Canada sells monthly subscriptions to individuals across Canada, and its Canadian sales pass the threshold part-way through a year. Illustratively, the effective date of registration would generally be the day it passes the threshold, and it would apply on that date. It would then charge tax on those sales, report on a calendar-year basis and pay each quarter, without claiming credits for tax on its own costs.
These figures are illustrative only. The actual threshold calculation depends on which supplies count, and a platform that is itself registered may be the party that charges and remits tax instead of the vendor.
What to discuss with your accountant
If you are an Ontario business, ask whether any of your suppliers or platforms are registered under the simplified account, how tax appears on their invoices, and whether the tax is recoverable through input tax credits on your own return. If you are a non-resident selling into Canada, a Canadian adviser can help confirm which measure applies to you.
Bring a clear description of what is sold, to whom, where the customers are, and the revenue figures needed to test the threshold. If you sell digital products from Ontario to customers elsewhere, the place-of-supply rules and the registration threshold matter more than this simplified regime.
Sources & editorial notes
Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- Get ready to register for the GST/HST: GST/HST for digital-economy businessesCanada Revenue Agency
- Find out if you need to register for the GST/HST: GST/HST for digital-economy businessesCanada Revenue Agency
- GST/HST for digital-economy businesses: OverviewCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.