London Ontario Sales Tax & Bylaw Guidance for Retailers

Taxation and Finance Ontario 4 Minutes Read · published February 12, 2026 Flag of Ontario

Retailers operating in London, Ontario must comply with federal and provincial sales-tax rules while following applicable municipal business bylaws and licence requirements. This guide explains what retailers must collect and remit, how to register, the roles of enforcement bodies, typical violations, and where to find official forms and contacts.

Sales tax basics

Ontario participates in the Harmonized Sales Tax (HST). Retailers must charge the correct HST rate on taxable supplies and display prices clearly when required by consumer-protection rules. For current HST rates see the federal guidance Canada Revenue Agency - HST rates[1].

Registration, collection and remittance

Most businesses with taxable sales over the small-supplier threshold must register for a GST/HST account, collect HST from customers, and remit it to the Canada Revenue Agency (CRA). Guidance on registering and reporting is published by the CRA; register or get account details on the official registration page Register for a GST/HST account[2].

Register early to avoid late-filing penalties.

Penalties & Enforcement

Enforcement and most monetary penalties for incorrect collection, failure to register, late filing, or failure to remit HST are administered by the Canada Revenue Agency. Municipal enforcement may apply for local bylaw breaches such as operating without a required municipal business licence; however, municipalities do not set HST policy or rates.

  • HST rate: 13% in Ontario as published by the CRA.[1]
  • Federal penalties: the CRA describes late-filing penalties and interest for GST/HST accounts; detailed penalty calculations and interest rules are on CRA pages and guidance for businesses.[2]
  • Municipal enforcement: By-law Enforcement and Licensing departments handle local licence infractions; specific municipal fine amounts for licence breaches are not specified on the cited City of London business pages.[3]

Where the cited official pages do not list a precise monetary amount or a schedule of escalating fines, this guide notes that the figure is "not specified on the cited page" and points readers to the enforcing authority for exact amounts or schedules.

Municipalities do not set HST rates; the CRA does.

Applications & Forms

Key federal forms and applications for sales tax compliance:

  • GST/HST account registration (CRA, form RC1 or online registration). See the CRA registration page for methods and requirements.[2]
  • GST/HST return filing and remittance forms and schedules: use CRA online services or authorized forms as directed by CRA pages.[2]
  • Municipal business licences and permits: apply through the City of London Business Licensing and Permits pages for required local licences; fees and submission methods are listed there or by contacting the City directly.[3]

Appeals and reviews: for assessments, penalties or interest imposed by the CRA, follow the CRA objection and appeal process; time limits and procedures are described on CRA pages. For municipal licence decisions, follow the City of London review and appeal pathways specified on the municipal pages or contact By-law Enforcement.

Common violations and typical outcomes

  • Charging incorrect HST rate or failing to charge HST on taxable supplies — outcome: assessment and interest/penalties by CRA.
  • Operating without required municipal business licence — outcome: municipal compliance orders, notices, and potential fines (amounts not specified on the cited City of London pages).[3]
  • Failure to file or late remittance — outcome: CRA late-filing penalties and interest; see CRA guidance for calculation methods.[2]
Keep clear records of sales and tax collected for at least the minimum period required by CRA and municipal rules.

How-To

  1. Determine if your business exceeds the small-supplier threshold and must register for a GST/HST account.
  2. If required, register for a GST/HST account online or via form RC1 as instructed by CRA.[2]
  3. Collect the correct HST rate on taxable sales and issue receipts or invoices showing tax where applicable.
  4. File GST/HST returns and remit collected tax on the required schedule (monthly, quarterly, or annually) using CRA remittance methods.
  5. Maintain records and respond promptly to CRA or municipal notices; use official appeal channels if you dispute an assessment.

FAQ

Do London municipal bylaws set the HST rate?
No. HST rates are set and administered by the federal government and CRA; municipalities do not set HST rates.[1]
Where do I register to collect HST?
Register for a GST/HST account with the Canada Revenue Agency via the CRA registration page or by filing form RC1 as directed by CRA.[2]
Who enforces municipal business licence requirements in London?
The City of London By-law Enforcement and Licensing departments enforce local licence and bylaw requirements; see the City business licences and permits pages for details.[3]

Key Takeaways

  • Charge and remit HST correctly; the CRA governs HST policy and penalties.
  • Register for a GST/HST account if you exceed the small-supplier threshold and follow CRA filing schedules.
  • Obtain any required City of London business licences and follow municipal bylaw requirements to avoid local enforcement action.

Help and Support / Resources

  1. [1] Canada Revenue Agency - HST rates
  2. [2] Canada Revenue Agency - Register for a GST/HST account
  3. [3] City of London - Business licences and permits

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