Managed Markets for Canada

Managed Markets is available for stores based in Canada. International customers can check out in their local currency, duties and taxes are calculated at checkout, and orders are delivered with prepaid duties. Before you activate Managed Markets, review the requirements and considerations for using Managed Markets.

Considerations for using Managed Markets in Canada

The following features aren't yet available for Managed Markets in Canada:

• Shopify Protect.
• Multi-currency payouts.
• Refunds for Managed Markets orders.

Shipping carriers and fulfillment for Managed Markets in Canada

You can purchase DHL Express and FedEx shipping labels for Managed Markets orders in Canada. DHL eCommerce and UPS aren't available. Shipping rates use pre-configured rates that are set up when you activate Managed Markets.

If your store is in Canada and you have multiple fulfillment locations, then all locations must be in the same province.

Shipping labels purchased through Managed Markets in Canada are zero-rated. You aren't charged tax on the cost of your Managed Markets shipping labels.

For more information, refer to Fulfilling and managing Managed Markets orders.

Payouts and fees for Managed Markets in Canada

When you use Managed Markets in Canada, review the following information about payouts, fees, and invoices.

Settlement currency

Stores in Canada are paid out in CAD.

Fees

Managed Markets has the following fees for international orders:

• A Shopify Payments processing fee, which varies by your Shopify plan and the payment method used by your customer.
• A Managed Markets transaction fee of 3.25% for stores on the Shopify Plus plan, or 3.5% for stores on the Basic, Grow, or Advanced plan.
• A currency conversion fee that's the same as the foreign exchange (FX) fee for Shopify Payments in your region.

GST, HST, QST, PST, or RST is added to the Managed Markets fee for stores based in Canada, depending on your province. Refer to tax on the Managed Markets fee.

For more information, refer to Managed Markets with Shopify Payments.

Merchant of record fee invoices

When you activate Managed Markets, Global-e becomes your merchant of record for international Managed Markets orders. In Canada, you're charged a merchant of record service fee directly. Your Shopify Payments processing fee and FX fee remain on your Shopify Payments tax invoice.

Managed Markets tax invoices for Canada

A Managed Markets order in Canada is considered a business-to-business (B2B) sale from your store to Global-e, who then sells to your customer as the merchant of record. As a result, Managed Markets sales in Canada have tax implications. In Canada, GST, HST, QST, PST, or RST applies to orders, depending on your province.

You can download the following invoice types from the order page in your Shopify admin:

• B2B domestic tax invoice: Records the tax charged on the sale from your store to Global-e.
• Shipping fee invoice: Records the cost of the shipping label for the order.
• Merchant fee invoice: Records the Managed Markets transaction fee for the order.

Tax invoices are generated when a Managed Markets order is fulfilled, not when the order is placed. The download option is displayed only after the invoice exists. If the download option isn't available after an order is placed, then check the order again after it's fulfilled.

To download tax invoices for multiple orders at the same time, use the bulk download option in your Managed Markets settings.

Self-billing agreement for Managed Markets in Canada

If your store is based in Canada, then you need to sign a self-billing agreement when you activate Managed Markets. A self-billing agreement is required for tax compliance.

Tax ID validation

In Canada, your GST or HST tax ID is validated, along with your business name. Your GST or HST registration must match your registered legal business name. If your tax registration is invalid or doesn't match your legal business name, then you might be liable for the tax due on your Managed Markets sales. This can be a significant, unexpected cost.

PST and RST registrations aren't validated.

Tax reports

You can view an overview of the taxes you've collected through Managed Markets from the Managed Markets taxes report in your Shopify admin. For details about the data displayed and how to customize the view, refer to Managed Markets taxes report.