Non-resident security

When you apply to be registered for GST/HST, you may have to provide us with security. Security may be required if you do not have a permanent establishment in Canada, or if you make supplies in Canada only through another person's fixed place of business.

The initial amount of the security deposit is 50% of your estimated net tax, whether positive or negative, for the 12-month period after you register. For subsequent years, the amount of security is equal to 50% of your actual net tax for the previous 12-month period whether this amount is positive or negative. The maximum security deposit that we may require is $1 million, and the minimum is $5,000.

Your security deposit may be in the form of cash, certified cheque, money order, or a qualifying bond. We do not accept non-transferable bonds such as Canada Savings Bonds. Contact your Non-resident GST/HST Registration and Security Enquiries for current security requirements.

All security deposits are payable in Canadian dollars.

If you estimate that you will sell or provide taxable goods and services in Canada of not more than $100,000 annually and your net tax will be between $3,000 remittable and $3,000 refundable annually, a security deposit is not required.

Forms and publications

• Guide RC4022, General Information for GST/HST Registrants
• Guide RC4027, Doing Business in Canada - GST/HST Information for Non-Residents
• Booklet RC2, The Business Number and Your Canada Revenue Agency Program Accounts
• Form RC1, Request for a Business Number (BN)
• Form RC1A, Business Number (BN) - GST/HST Account Information
• Form RC59, Business Consent Form
• GST/HST Memoranda Series Chapter 2-5, Non-resident registration
• GST/HST Memoranda Series Chapter 2-6, Security requirements for non-residents

Related topics

• Canada Business
• Related provincial and territorial government sites
• Industry Canada