Provincial Sales Taxes

The provinces of New Brunswick, Nova Scotia, and Newfoundland-Labrador scrapped their sales taxes and joined forces with the Federal Government to impose a 15% Harmonized Sales Tax. After two rate reductions, the current rate is now 13%.  However, Nova Scotia has since raised its provincial component to 10% for a combined rate of 15%.

The Federal government administers the HST, which is identical to its 5% Federal Goods and Services Tax.  It retains its 5% portion and transfers the remainder to the HST provinces.

Effective July 1, 2010, the provinces of British Columbia and Ontario scrapped their retail sales tax and joined the Federal government to impose the HST.  The HST rate for British Columbia is 12% and for Ontario it's 13%.   

The province of Alberta, and the Territories of Yukon, Northwest Territories, and Nunavut, do not charge a sales tax.  Only the 5% GST applies.

The province of Quebec has a modified, but separate, Harmonized Sales Tax called the QST.  The rate is 7.5% and is charged on the selling price plus the GST.  Commercial businesses obtain a refund (Input Credit) for the GST and QST paid on their purchases. Through a special agreement with the Federal government, the province administers both the GST and the QST.

The provinces of Saskatchewan, Manitoba, and Prince Edward Island charge a Retail Sales Tax (RST) on goods and services, but there are some exemptions.  Although the final consumer pays the RST, these provinces require vendors to charge, collect, and remit the tax.  The RST is destination based, and sales to locations out of an RST province do not bear the tax.  However, people bringing goods into an RST province must calculate and remit the tax to the province.  Businesses and manufacturers do not pay the RST on goods they purchase for resale, but do pay it on goods they use in their business such as office equipment.  The rates for these provinces are as follows:

If you need more advice or help, please contact us.