Online Courses & E-books in Canada: Taxable or Not?

Selling digital content like online courses and e-books has never been easier — or more popular. Entrepreneurs, educators, and content creators are tapping into global markets, and Canada is no exception. But as with any type of sale, there’s one thing you can’t ignore: sales tax.

The question we hear all the time is:

“Are my online courses or e-books taxable in Canada?”

The answer is: It depends.

This post breaks down how GST/HST and provincial taxes apply to e-books and online courses, and what you need to know to stay compliant while maximizing your profits.

1. What Does the CRA Say About E-books?

E-books Are Generally Taxable

The Canada Revenue Agency (CRA) considers most e-books to be taxable digital products. If you're selling downloadable or cloud-access e-books to Canadian customers, you’re generally required to charge GST or HST, depending on the customer’s province.

But Some E-books May Be Zero-Rated

Under Schedule VI of the Excise Tax Act, printed books and their electronic equivalents may be zero-rated, meaning taxable at 0%.

To qualify for this special treatment: The content must meet the definition of a book.

It must not be primarily: Advertising, Periodicals (like magazines), Interactive software or games, Instructional materials bundled with tutoring services.

Example of a Zero-Rated E-book:

A standalone PDF of a novel or textbook sold without videos or quizzes.

Example of a Taxable E-book:

An interactive study guide with video tutorials, quizzes, and a learning dashboard.

Bottom line: If it’s a plain e-book similar to a physical book, it might be zero-rated. If it’s bundled with digital tools or considered part of a course, it’s likely fully taxable.

2. What About Online Courses?

Online Courses Are Generally Taxable

Most online courses sold in Canada are fully taxable. That includes:

• Pre-recorded video lessons
• Downloadable modules
• Self-paced learning platforms

Whether you sell on your own website or through platforms like Thinkific, Teachable, or Kajabi, your sales may be subject to GST/HST, QST, or PST depending on your customers’ provinces

Exception: Zero-Rated Educational Services

Some live, instructor-led courses may be zero-rated if:

• Delivered in real-time (e.g., live Zoom or classroom-style webinars),
• Designed to develop occupational skills, and
• Offered by a recognized educational institution or vocational school.

But if you're an independent creator or business selling on-demand digital courses, you’re likely offering a taxable service.

3. Do Foreign Sellers Need to Charge Canadian Tax?

Yes — if you're a non-resident of Canada selling digital products or services to Canadian consumers, the CRA may still require you to register under the Simplified GST/HST Regime. This applies if:

• You make $30,000+ in annual sales to Canadian consumers, and
• You sell qualifying digital goods or services, like e-books and online courses.
• Québec has a similar regime for QST if you sell to customers in Québec.

4. What If I Sell Through Shopify, Gumroad, or Another Platform?

Some platforms may collect tax on your behalf — but not always the case, and not always in every province.

You’re still responsible for:

• Registering for the right tax accounts (GST/HST, QST, PST),
• Charging the right rate based on customer location, and
• Filing returns even if the platform handles remittance.

5. How We Help Digital Creators and Course Sellers

At Blutax, we help online sellers and educators:

• Determine whether your content is taxable or zero-rated
• Register for GST/HST, QST, and PST where needed
• Apply for CRA rulings if you’re unsure about classification
• Set up systems to automatically calculate and charge the right rates
• Stay compliant — without losing focus on your core business

Final Thoughts: Know Before You Charge

Online education and digital publishing are booming — but sales tax rules haven’t always kept up. The good news? With the right guidance, you can stay compliant and avoid costly mistakes.

Need help figuring out if your e-books or online courses are taxable?

Let’s chat. We offer a free consultation to walk you through your options and get your tax setup right.