Overview of the Canadian Sales Tax: GST, PST, and HST Explained
An overview of Canadian sales tax explained: GST, provincial PST and QST, and harmonized HST rates, who collects each, and how it affects Kintsugi monitoring.Updated last year
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Doing business in Canada? Knowing about sales taxes is key, especially if you're using Kintsugi's Nexus Monitoring. Let's break down the different types of sales tax in Canada simply.
What are the Types of Sales Tax in Canada?
Canada has three main types of sales tax. Which one applies depends on the province you're dealing with.
Goods and Services Tax (GST)
Rate: 5%
Applies: Everywhere in Canada (all provinces and territories)
Collected by: The Federal Government
What it is: A tax on most goods and services sold in Canada. Think of it as the basic, nationwide tax.
Provincial Sales Tax (PST)
Rate: Varies by province
Applies:
British Columbia (7%)
Saskatchewan (6%)
Manitoba (7%)
Quebec (Quebec Sales Tax or QST) (9.975%)
Collected by: The Provincial Governments
What it is: An extra tax on top of GST. Each province with PST has its own rules.
Harmonized Sales Tax (HST)
Rate: Varies by province (13%-15%)
Applies:
Ontario
New Brunswick
Newfoundland and Labrador
Nova Scotia
Prince Edward Island
Collected by: The Federal Government (on behalf of the province)
What it is: A mix of GST and PST into one single tax. Easier because you only deal with one tax.
How Does This Affect Kintsugi's Nexus Monitoring?
Kintsugi's Canada Nexus Monitoring helps you figure out where you need to register for sales tax. Here's how the different taxes matter:
GST: If you're doing business anywhere in Canada, you'll likely need to register for GST.
PST: If you're in provinces with PST, you might need to register separately in each one.
HST: In provinces with HST, you usually register once, and it covers both GST and PST.
Quick Guide
Province/Territory | GST | PST/QST | HST | Notes |
Alberta | ✔ | ✖ | ✖ | Only GST applies |
British Columbia | ✔ | ✔ (PST) | ✖ | PST collected separately |
Manitoba | ✔ | ✔ (PST) | ✖ | PST collected separately |
Saskatchewan | ✔ | ✔ (PST) | ✖ | PST collected separately |
Quebec | ✔ | ✔ (QST) | ✖ | QST is separate from GST |
Ontario | ✖ | ✖ | ✔ | HST at 13% |
Nova Scotia | ✖ | ✖ | ✔ | HST at 15% |
New Brunswick | ✖ | ✖ | ✔ | HST at 15% |
Newfoundland and Labrador | ✖ | ✖ | ✔ | HST at 15% |
Prince Edward Island | ✖ | ✖ | ✔ | HST at 15% |
Territories (YT, NT, NU) | ✔ | ✖ | ✖ | Only GST applies |
Need Help?
If you’re unsure about which taxes apply to your business or how to register, Kintsugi’s Nexus Monitoring tool helps simplify your compliance by tracking thresholds and surfacing action items.
Still have questions? We're always here to help. Please reach out to us using the chat bubble in the bottom right corner.
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