Canada GST / HST guidelines
| FACTSHEET | |
|---|---|
| Country code | CA |
| Tax name | Goods and Services Tax (GST) and the Harmonized Sales Tax (HST). |
| Tax Authority | Canada Revenue Agency |
Overview
GST or Goods and Sevices Tax is applicable for most of the supplies of goods and services in Canada. The taxes to be charged depends on the type of supply and the place of supply.
PST
PST stands for "Provincial Sales Tax," which is a type of sales tax levied by some provinces in Canada on the purchase of goods and services. Each province in Canada has its own tax laws and may impose its own PST rate, if applicable.
HST
HST stands for "Harmonized Sales Tax," which is a consumption tax in Canada. It combines the federal Goods and Services Tax (GST) with the Provincial Sales Tax (PST) of certain provinces. The HST simplifies the tax system by creating a single, harmonized tax rate instead of separate federal and provincial taxes.
QST
QST stands for "Quebec Sales Tax," which is a consumption tax in the province of Quebec, Canada. It is a provincial tax that is separate from the federal Goods and Services Tax (GST).
Participating province
Participating province refers to a province in Canada that has harmonized its provincial sales tax with the GST to implement the harmonized sales tax (HST). Participating provinces include New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island.
Non-participating province
Non-participating province refers to a province or territory in Canada that has not harmonized its provincial sales tax with the GST.
Tax Rates
The rates for taxable supplies depends on the province or territory. The current rates of GST/ HST are as follows. The Non-participating provinces might have PST in addition to the GST
- A zero-rated supply has a 0% GST/HST rate throughout all of Canada. For example, basic groceries are taxable at the rate of zero (0% GST/HST) in every province and territory
- 5% (GST) in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon
- 13% (HST) in Ontario
- 15% (HST) in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island
Total Sales tax in Provinces
| Province | Type | PST | GST | HST | Total Tax Rate |
|---|---|---|---|---|---|
| Alberta | GST | 5% | 5% | ||
| British Columbia | GST + PST | 7% | 5% | 12% | |
| Manitoba | GST + PST | 7% | 5% | 12% | |
| New Brunswick | HST | 15% | 15% | ||
| Newfoundland and Labrador | HST | 15% | 15% | ||
| Northwest Territories | GST | 5% | 5% | ||
| Nova Scotia | HST | 15% | 15% | ||
| Nunavut | GST | 5% | 5% | ||
| Ontario | HST | 13% | 13% | ||
| Prince Edward Island | HST | 15% | 15% | ||
| Quebec | GST + *QST | *9.975% | 5% | 14.98% | |
| Saskatchewan | GST + PST | 6% | 5% | 11% | |
| Yukon | GST | 5% | 5% |