Harmonized Sales Tax (HST)
Effective July 1, 2010, the existing provincial sales taxes in British Columbia (BC) and Ontario (ON) will be replaced by a single Harmonized Sales Tax (HST), and the existing HST in Nova Scotia (NS) will increase. The HST will consist of the existing federal Goods and Services Tax (GST) and the provincial component, as shown below:
| Breakdown | BC | ON | NS |
| Provincial portion | 7% | 8% | 10% |
| Federal portion (GST) | 5% | 5% | 5% |
| Combined (HST) | 12% | 13% | 15% |
There is no need to register for the HST if you are already registered for the GST – that will happen automatically.
Impacts to Imports
Non-Commercial Goods
The HST is applicable on most casual (non-commercial) goods that are destined to a participating province, regardless of the point of entry, and is collected by the Canada Border Services Agency (CBSA) at the time of importation. For example, if goods are imported by a resident in Ontario, and the goods are also delivered in Ontario, then the HST would apply. The HST would also apply if goods were purchased by a resident in Alberta and the goods were delivered in Ontario. However, if a resident in Ontario purchased goods that were delivered in Alberta then the HST would not apply.
Commercial Goods
At the time of importation, only GST applies to most commercial goods. However, in some cases, commercial goods imported into a participating province may also be subject to the HST. If this applies, importers will have to self-assess the appropriate provincial portion of the HST.
The participating provinces in Canada are Nova Scotia, New Brunswick, Newfoundland and Labrador, British Columbia, Ontario.
For more information, please visit:
The Canada Revenue Agency Web site
The Canada Revenue Agency Web site (Excise and GST/HST News)
The Canada Border Services Agency Web site (Fact Sheet)
Impacts to FedEx® Shipping Charges
| ORIGIN PROVINCE | DESTINATION | APPLY | TAX APPLICABLE IRRESPECTIVE OF PAYER COUNTRY? (Y / N) |
| Any Canadian province | Newfoundland, Nova Scotia, |
HST | Y |
| Quebec | Newfoundland, Nova Scotia, |
HST | Y |
| Quebec | Quebec | GST + QST | Y |
| Quebec | All Canadian provinces except Newfoundland, |
GST | Y |
| Any Canadian province except Quebec | All Canadian provinces except Newfoundland, |
GST | Y |
| Any Canadian province | All international destinations and the freight charge is greater than CAD $5 | NONE | N/A |
| Any Canadian province except Quebec | Quebec | GST | Y |
Please note that HST is levied on ancillary and advancement fees, as well as FedEx International Ground Clearance Entry Fees.
Impacts to FedEx® Electronic Shipping Solutions
Sales taxes are included in courtesy rate quotes for intra-Canada shipments. FedEx electronic shipping solutions have been updated with the new sales tax logic and it will be reflected in the courtesy rate quote for shipments with a ship date of July 1, 2010 or later. The courtesy rate quote for shipments with a ship date before
fedex.ca and FedEx Web Services
- The sales tax logic will be automatically updated.
FedEx Ship Manager™
- You must ensure that you are running version 2454 or above to receive a courtesy rate quote with the updated sales tax.
- The staggered deployment of version 2454 will begin mid-June.
- To download the most recent version, go to fedex.ca/software.
FedEx Ship Manager™ Server (FSMS)
- You must ensure that you are running versions 852, 1004 or above to receive a courtesy rate quote with the updated sales tax.