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% |
Reference links
Frequently Asked Questions
How does the $30,000 small supplier threshold work in Canada?
The small supplier exemption ($30,000; $50,000 for public service bodies) is based on a rolling four consecutive calendar quarters — not a calendar year. Once you exceed $30,000 in a single calendar quarter, you lose small supplier status effective on the first day of the month following that quarter. Revenues from associated persons are combined — you cannot split activity across two businesses to double the threshold. [1]
Why do I need two separate registrations in Quebec?
Quebec did not harmonize its sales tax into HST. You need: (1) Federal GST registration with CRA (format: 9XXXXXXXXRT0001); and (2) Quebec Sales Tax (QST) registration with Revenu Québec (format: XXXXXXXXXX-TQ-0001). A CRA registration does not automatically register you for QST, and vice versa. Non-residents supplying digital services to Quebec consumers may have separate QST obligations. [1]
I'm in BC billing a customer in Ontario — do I charge HST (13%) or GST (5%)?
For most tangible goods shipped from BC to Ontario, Ontario HST (13%) applies (place of supply = where goods are received). For services, BC's rate generally applies if the service is performed in BC, but specific place-of-supply rules exist for real property, travel, and cross-border services. For digital services, the consumer's location determines the rate. Multi-province billing requires careful rule application. [1]
What is the difference between zero-rated and exempt supplies in Canada?
Both are charged at 0% GST/HST, but differ on input tax credit (ITC) eligibility. Zero-rated (Schedule VI — basic groceries, exports, prescription drugs): supplier can still claim ITCs on related purchases. Exempt (Schedule V — healthcare, residential rent, financial services): no GST/HST charged, and supplier cannot claim ITCs on inputs. Misclassification causes either lost ITC claims (exempt misclassified as zero-rated) or incorrect ITC claims assessed by CRA. [1]
Do non-resident businesses need to register for GST/HST when selling digital services to Canadians?
Yes. Since 1 July 2021, non-residents supplying digital services (streaming, software, SaaS) to Canadian consumers must register for GST/HST under the simplified regime once Canadian sales exceed $30,000 over 12 months. Platform operators (marketplaces) are also required to register and collect GST/HST on behalf of suppliers in many cases. Quebec has separate QST rules for non-resident digital suppliers. [1]
For more details on Canadian tax identifiers, see our Canada Tax ID Guide.
