Quick Answer: What’s the Best Way to Charge Container Deposit Fees on Shopify (Canada)?
If you sell beverages in Canada, most provinces require you to charge container deposit fees on bottles, cans, and other beverage containers. These deposits are usually non-taxable, so bundling them into product prices can lead to overcharging GST/HST and extra admin work.
Because Shopify doesn’t handle deposits as separate fees by default, the simplest way to stay compliant is to use an app like Magical Product Fees to automatically add the correct deposit per container and show it as its own line at checkout, keeping charges transparent and easier to report.
Watch: How to Add Canadian Container Deposit Fees on Your Shopify Store (44-second video)
Detailed Answer: How to Set Up Canadian Container Deposit Fees on Shopify With Magical Product Fees
Why container deposit fees matter for Canadian Shopify stores
Across Canada, most provinces require you to charge container deposit fees on eligible beverage containers. Customers pay a small deposit upfront and can often get it back when they return the container for recycling.
These deposits are usually treated as non-taxable by the CRA, which means that if you quietly roll them into your product prices and charge GST/HST on the whole amount, you’re over-collecting tax and making your reporting more complicated than it needs to be.
Why embedding deposits in prices can cause tax and compliance issues
Many breweries and beverage retailers bake deposits into product prices, but that often means you charge GST/HST on the deposit, even though it’s usually non-taxable. It also hides the fee from customers and forces you (or your accountant) to untangle deposits from product revenue later. Listing deposits as a separate, non-taxable line item is clearer for customers and cleaner for your books.
A simple way to separate and automate container deposits
Magical Product Fees gives you a straightforward way to handle container deposits the way the CRA expects. You decide which products and provinces require deposits and what amounts to charge, and the app:
- Adds the correct deposit amount per item to eligible beverage products
- Shows the deposit as a separate, clearly labeled line item at checkout
- Lets you treat the deposit as non-taxable, so you’re not accidentally charging GST/HST on it
- Supports location-based fees, so customers see the right deposit for their province without manual changes
This keeps your catalog pricing clean while making deposits easy to track and explain.
3 steps to add container deposit fees on Shopify
1. Install Magical Product Fees
Install Magical Product Fees on your Shopify store. The free trial gives you time to configure your container deposits and test how they appear.
2. Create deposit rules for beverage containers
In the app, create fee rules for your container deposits (for example, “Alberta – container deposit” or “BC – container deposit”). Set the deposit amount per container, mark it as non-taxable, and give it a clear label like “Container deposit” so customers recognize it.
3. Assign rules by product and province, then test
Assign each rule to the drinks and provinces where that deposit applies. Save and activate the rule, then place a test order to confirm the deposit shows as a separate, non-taxable line item in the cart and at checkout. After that, the app will apply the correct container deposits automatically for every eligible order.
What Merchants Are Saying
With over 55 five-star ratings, merchants around the world say that Magical Product Fees is a great way to handle bottle deposit charges with confidence.
★★★★★
Beau Dégât Bièrerie de Quartier, Canada
“The technical support provided by the team is remarkably prompt and efficient. Their assistance in setting up our online store and integrating it with our point-of-sale system was amazing. Highly recommend this app to get those bottle deposits added.”
★★★★★
UNWRAPP, Netherlands
“It helped us to charge deposit for returnable cans for the Dutch Market. We got great support from their team.”
If you’re charging Canadian container deposits, Magical Product Fees makes compliance simple and support stress-free.
Supporting Answers
What Are Container Deposit Fees?
Container deposit fees are extra charges applied to beverage containers (such as bottles, cans, or Tetra Paks) to encourage recycling. Customers pay a small deposit upfront, which they can often redeem by returning the container to a designated recycling location.
Each Canadian province sets its own rules and fee amounts for beverage containers. For example, Alberta’s deposit fees differ from those in British Columbia or Ontario. It’s important to stay informed of your province’s specific regulations to ensure compliance.
Do I Have to Charge Container Deposit Fees?
Yes. If you sell beverages in Canada, you are legally required to charge container deposit fees. While the exact rules differ by province, failing to collect and remit these fees can result in fines or penalties. Using an automated tool like Magical Product Fees ensures you never miss a required charge.
Do I Charge Taxes on These Fees?
In Canada, container deposits are not subject to GST/HST when they are charged at the time of sale. The reason is that the deposit is considered a separate refundable amount, not part of the taxable purchase price.
For example, when you buy wine or spirits from the LCBO (Ontario’s Liquor Store), the receipt shows bottle deposit fees as a separate charge, and tax is not applied to those fees.
The Canada Revenue Agency (CRA) recommends treating container deposits as non-taxable amounts. If you embed deposit fees into the total product price and apply tax to the full amount, you’re overcharging tax and remitting more to the government than necessary.
While over-remitting tax may seem harmless, it can lead to compliance issues, audits, or correction requests from the CRA. Merchants may need to adjust past filings, which can create unnecessary administrative burdens and potential financial costs.
To simplify tax reporting and prevent errors, always list deposit fees separately as a non-taxable line item at checkout.
How Should I Display These Fees to Customers?
Transparency is key. Clearly listing container deposit fees as a separate line item during checkout ensures customers understand what they’re paying for and prevents confusion.
With Magical Product Fees, you can automatically apply and display deposit fees alongside product prices and taxes, ensuring an accurate, itemized breakdown that builds trust with customers.
How Do I Handle Multi-Provincial Sales and Location-Based Fees?
If you sell across multiple provinces, you must charge the correct deposit fee based on the customer’s location.
Magical Product Fees supports location-based fee settings, allowing you to automatically apply the correct provincial deposit rates at checkout.
Real-Life Experience
“I’ve seen firsthand how deposit programs encourage repeat sales. For example, when I buy Muskoka Brewery beer in Ontario, I pay a small deposit upfront. Returning the cans to The Beer Store not only gets me my deposit back, but I usually apply it toward my next purchase, giving me an extra reason to return.”
-Kyle Godon, Shopify App Expert
Key Takeaway
To simplify compliance with Canada’s container deposit regulations, Magical Product Fees is the most reliable and user-friendly solution. It saves you time, avoids costly mistakes, and keeps your store aligned with provincial laws.
Try Magical Product Fees today to simplify compliance and confidently charge container deposit fees on your Shopify store!
Magical Fees
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