Incorporating an Online Store in Quebec: Taxes, Platforms and Dropshipping (2026)
You can sell online in Quebec without incorporating: Stripe, Shopify and Amazon accept individuals. A corporation — $497 all-in, $397 in government fees included — becomes the right choice when liability, image or growth call for it. This guide shows when — and which tax to collect based on the province.
Selling services rather than products? See our guide for freelancers and the self-employed. And to correctly declare your activity with the Registraire, see our CAE code guide.
Can you sell online without incorporating?
Yes — nothing requires a Quebec e-commerce merchant to incorporate. A sole proprietorship is enough to open a store, collect payments and sell on marketplaces. A corporation becomes relevant once liability, brand image or growth come into play: it's a business decision, not a platform requirement.
As a sole proprietorship, you and your store are one and the same: supplier debts, inventory bought on credit, shipping disputes — all of it engages your personal assets, without limit. A corporation is a separate legal person: it is the corporation that contracts and answers for the store's obligations, with your liability as a shareholder generally limited to your investment. Honest caveats: personal guarantees required by some suppliers, and your own personal fault as a director, remain outside that shield.
To compare structures, see our pages business legal structures and When should you incorporate in Quebec?.
Which CAE code should you declare for an online store?
The codes commonly used with the Registraire for e-commerce are 6599 ("Other retail stores") and 6921 ("Direct selling establishments"), often paired with a free-text description such as "online sales." No code is officially mandated for an online store: the nomenclature predates the internet.
Many stores in fact combine 6921 with the code for the product sold. Our CAE code guide explains how to choose — and, if needed, change — your code.
GST/QST: the $30,000 threshold arrives faster than you think
You must register for GST and QST as soon as your taxable sales exceed $30,000 in a given calendar quarter or over the four preceding calendar quarters. Below that, you are a "small supplier" and registration is optional — but online, that threshold is often crossed within a few months.
Worth knowing:
- Zero-rated sales count: your 0% exports factor into the threshold calculation, even though no tax is collected;
- Crossing the threshold without registering is costly: uncollected taxes can be claimed retroactively, with interest and penalties — details at Revenu Québec;
- Voluntary registration can pay off: registered before the threshold, you recover the credits (ITCs and ITRs) on your expenses — advertising, your Shopify subscription, inventory.
Our guide to GST/QST tax numbers details the process; our GST/QST tax calculator gives you the exact amounts. The Complete package at $697 in fact includes the GST/QST and source deductions registrations along with your incorporation.
Which tax should you collect based on your customer's province?
The tax follows the destination of the package, not your address. Goods shipped outside Quebec are not subject to QST: you collect the GST or HST of the destination province. 2026 rates for a registered Quebec seller:
| Package destination | Tax to collect |
|---|---|
| Quebec | GST 5% + QST 9.975% = 14.975% |
| Ontario | HST 13% |
| Nova Scotia | HST 14% |
| N.B., N.L., P.E.I. | HST 15% |
| Alberta, N.W.T., Yukon, Nunavut | GST 5% |
| British Columbia | GST 5% (+ PST 7% if registered — $10,000 threshold over 12 months) |
| Saskatchewan | GST 5% (+ PST 6% from the very first direct sale) |
| Manitoba | GST 5% (+ RST 7% — the exemption does not apply to out-of-province sellers) |
| U.S. / international | 0% (zero-rated), with proof of export |
The trap of provincial sales taxes: B.C., Saskatchewan and Manitoba administer their tax outside the GST/HST system — your GST/QST registration changes nothing there. Saskatchewan requires registration from the very first direct sale, Manitoba does not grant its exemption to out-of-province sellers, and B.C. applies its own separate $10,000 threshold over 12 months.
Exports are zero-rated, not exempt from proof: to charge 0% internationally, keep proof of export — a tracking number, bill of lading, or customs declaration. Without it, the CRA can assess GST/QST on your "zero-rated" sales.
Stripe, Shopify Payments, Amazon: do you need to be incorporated?
No — none of these platforms requires incorporation. An individual or self-employed worker can open a Stripe or Shopify Payments account with no business number, and Amazon accepts the "None, I am an individual" option. Incorporation simply changes what you provide: a corporation identifies itself by its NEQ and its name in the register.
What is typically requested:
- Stripe: an individual selects "Individual or sole proprietorship," with no business number. A corporation provides a single identifier of its choice — NEQ (10 digits), incorporation number (7 digits) or Registry ID — plus, typically, its directors, its owners of 25% or more and a Canadian physical address. Stripe adjusts its requirements based on the account's risk profile;
- Shopify Payments: unregistered individuals are accepted; corporations provide their registration number (CRA BN or NEQ). In every case: a chequing account with a Canadian bank — which is why it pays to open your business bank account early;
- Amazon.ca: government-issued ID, a valid credit card, recent proof of address, tax information and a bank account.
So why incorporate at all? So that it's the corporation — not you personally — that collects payments, contracts and bears the store's obligations; and as volume grows, it also becomes a matter of image and taxation.
The right sequence: corporation → NEQ → taxes → store
The classic mistake is opening the store first and sorting out the paperwork afterward. The proper sequence: incorporate the corporation, obtain the NEQ, open the bank account, register for the taxes, then connect the store and payments in the corporation's name.
| Step | In practice |
|---|---|
| 1. Incorporate the corporation | Articles of incorporation filed with the Registraire — you obtain your NEQ. Details in our guide to the steps |
| 2. File the initial declaration | Directors, shareholders, CAE code — see our guide to the Enterprise Register |
| 3. Open the business bank account | Chequing account in the corporation's name — required for Stripe/Shopify payouts |
| 4. Register for GST/QST | Mandatory past the $30,000 threshold, often worthwhile before — included in the Complete package |
| 5. Launch the store | Stripe/Shopify/Amazon account opened in the corporation's name, with its NEQ |
On the cost side: $397 in government fees if you do it yourself, then $106 in annual rights to the Registraire. The Essential package at $497 all-in covers government fees, articles of incorporation, initial declaration and a numbered company; the Complete package at $697 adds the official name, the GST/QST and source deductions registrations, and express service. Details in our guide to incorporation costs and our online incorporation in Quebec page.
Your corporation for your online store — $497 all-in
A form of about 20 minutes, articles of incorporation prepared and verified, filed directly with the Registraire. The Complete package at $697 handles your GST/QST and source deductions registrations at the same time.
Dropshipping and Amazon FBA from Quebec: the rules that have changed
Dropshipping and FBA remain accessible from Quebec, but the framework has tightened: importing commercially now requires your own customs account and your own financial security, and selling into the United States exposes your customers to duties from the very first dollar.
CARM (GCRA): the mandatory customs gateway
Since October 2024, CARM (CBSA Assessment and Revenue Management, known as GCRA in French) has been the official system for commercial imports: every importer must hold a business number and an import-export program account (RM), obtained through the CARM Client Portal — the entry point is the CBSA website.
Three deadlines to know:
- Since May 20, 2025, your customs broker's security no longer covers you: release prior to payment now requires your own financial security (a bond or a cash deposit);
- Since January 1, 2026, a broker's business number can no longer be used for an importer's release or declaration;
- Since January 31, 2026, the waiver of CARM late penalties and interest has ended — mistakes now cost money.
On importation, the 5% GST is collected at customs clearance; for a registrant, QST is generally not collected at the border on commercial goods.
Selling into the United States: the end of de minimis
Since August 29, 2025, the US$800 US de minimis exemption has been suspended for all countries (still in effect in 2026): packages sold to US customers can be hit with duties from the very first dollar. The amounts vary depending on the executive orders in force and the shipping method used; documented consequences include surprise fees, refused packages and abandoned orders. If you sell into the US, clearly disclose who pays the duties.
The Amazon rules: seller of record and marketplace taxes
Two rules structure selling on Amazon from Quebec:
- Dropshipping: you must be the seller of record. Your name — and no one else's — must appear on packing slips, invoices and packaging; buying from another retailer that ships directly to your customer is prohibited;
- Taxes: it all depends on your registration in Seller Central. Without a registered GST/HST number, Amazon collects and remits GST/HST on your domestic sales (marketplace facilitator rules); once your number is registered, you handle your own taxes. In B.C., Saskatchewan and Manitoba, Amazon remits the provincial tax as a facilitator in every case.
Law 25 and the OPC: the legal minimum for an online store
Two laws govern your store from your very first sale: Law 25 on the protection of personal information — which applies to all private businesses, regardless of size — and the Consumer Protection Act for contracts entered into at a distance.
On the Law 25 side, the bare essentials:
- Designate a person in charge of the protection of personal information — you, by default — and publish their title and contact information on the site;
- Publish a privacy policy in plain, clear language;
- Keep a register of confidentiality incidents and, in the event of an incident that poses a risk of serious harm, diligently notify the CAI and the individuals concerned — details at the Commission d'accès à l'information (CAI, Quebec's access-to-information commission);
- Destroy or anonymize the information once its purpose has been fulfilled.
On the OPC side, distance contracts require full disclosure before the sale (identity, total price, cancellation and refund conditions), the ability to correct mistakes before finalizing the order, and a ban on collecting payment before performing the main obligation — except for chargeback-eligible payment methods such as credit cards. Deadlines to remember: cancellation within 7 days if disclosure is missing or non-compliant, rescission if the goods are not delivered within the 30 days provided for, refund within 15 days, chargeback within 60 days in the event of default. Merchant details are on the website of the Office de la protection du consommateur (OPC, Quebec's consumer protection agency).
The traps that cost Quebec e-commerce merchants dearly
- Forgetting the provincial sales taxes: registering for GST/QST solves nothing for B.C., Saskatchewan and Manitoba — and Saskatchewan requires registration from the very first direct sale;
- Tackling CARM unprepared: without a CARM portal registration, an RM account and your own financial security, there's no commercial customs clearance — and since January 2026, penalties and interest apply;
- Selling into the US as if it were still pre-2025: the US$800 exemption no longer exists; a customer who discovers duties at delivery often refuses the package;
- Zero-rating without proof: without proof of export on file, the CRA can assess GST/QST on your "zero-rated" sales;
- Collecting payment before delivering: the Consumer Protection Act (LPC) prohibits it except for chargeback-eligible payments — critical in dropshipping, where exceeding 30 days opens the door to rescission of the contract, then a chargeback.
FAQ — Online store and incorporation in Quebec
Do I need to incorporate to sell online in Quebec?
No. Stripe, Shopify Payments and Amazon accept individuals: you can start as a sole proprietorship. A corporation becomes the right choice once limited liability, image or growth justify it — $497 all-in with Incorp-Québec, $397 in government fees included.
Do I have to charge GST/QST from my very first sale?
No. Below $30,000 in taxable sales in a given calendar quarter or over the four preceding calendar quarters, you are a small supplier: registration is optional. If you register voluntarily, however, you recover the credits (ITCs and ITRs) on your business expenses.
What tax applies to a customer in Toronto?
Ontario's HST, at 13% — and no QST. Goods shipped outside Quebec follow the taxes of the destination province: HST in the harmonized provinces, 5% GST elsewhere.
I'm selling to an American customer — what do I charge?
0%: an export of goods outside Canada is zero-rated, provided you keep proof of export (tracking, bill of lading, declaration). Since August 29, 2025, the US de minimis exemption is suspended — your customer may have to pay duties when the package arrives.
Do Stripe or Shopify require you to be incorporated?
No. Both accept individuals and self-employed workers with no business number. A corporation provides an identifier — typically its 10-digit NEQ — plus, depending on the account, its directors and owners of 25% or more. Shopify Payments also requires a chequing account at a Canadian bank.
Do you need a corporation to sell on Amazon.ca?
No: Amazon accepts individual sellers ("None, I am an individual"), typically with government-issued ID, a valid credit card, recent proof of address and your tax information. In dropshipping, however, you must be the seller of record.
Who remits the GST on my Amazon sales?
If you have registered your GST/HST number in Seller Central, you do. Otherwise, Amazon collects and remits GST/HST on domestic sales (marketplace facilitator rules). In B.C., Saskatchewan and Manitoba, Amazon remits the provincial tax as a facilitator.
Does Law 25 apply to my small store?
Yes. Law 25 applies to all private businesses, with no size threshold: a designated person in charge of the protection of personal information (you, by default) with contact information published on the site, a clear privacy policy, an incident register, and diligent notice to the CAI and the individuals concerned in the event of a serious incident.
Which CAE code applies to an online store?
The commonly used codes are 6599 ("Other retail stores") and 6921 ("Direct selling establishments"), often paired with a free-text description such as "online sales." No code is officially mandated for e-commerce: choose the one that best describes your actual activity.
Can I set my own return policy?
For voluntary returns, yes — you set your own conditions, but must honour them. The rights under the Consumer Protection Act are untouchable: full disclosure before the sale, cancellation within 7 days if it's missing, refund within 15 days, credit card chargeback within 60 days in the event of default.
Incorp-Québec is a document preparation service: we prepare and file your articles of incorporation and registrations according to your instructions. For legal or tax advice tailored to your situation, consult a lawyer or an accountant.
Ready to give your store a real structure?
Test your idea without a corporation if you like. Then, once orders start piling up and the $30,000 threshold approaches, give your store its own separate assets, its NEQ and its tax numbers.
Your online store, incorporated — $497 all-in
A form of about 20 minutes, articles of incorporation, initial declaration with the REQ and government fees included. Complete package at $697 with official name, GST/QST and source deductions registrations, and express service.