Tax Changes

A summary of the most recent government tax changes can be found in this section.

Manitoba (MB) Tax Changes

On July 1, 2013, the Government of Manitoba (MB) will increase the Provincial Sales Tax (PST) rate of 7% to 8%. [Manitoba also refers to this as the Retail Sales Tax (RST).]

In addition to the Goods and Services Tax (GST), the PST/RST also applies to imports of applicable shipments originating outside Canada and destined to Manitoba.

For additional information, please visit the Government of Manitoba website.

Prince Edward Island (PEI) Tax Changes


On April 1, 2013, the Government of Prince Edward Island (PEI) will harmonize a Provincial Sales Tax (PST) rate of 9% with the Goods and Services Tax (GST) rate of 5%, resulting in a Harmonized Sales Tax (HST) rate of 14%.

Beginning April 1, 2013, Federal Express will apply the PEI HST to clearance charges for applicable shipments originating outside of Canada and destined to PEI. However, due to system limitations, Federal Express will continue to apply a GST rate of 5% to shipping charges for shipments originating in Canada and destined to PEI until mid-July 2013, at which time the 14% HST rate will apply. Your company will be entitled to an input tax credit of the GST and/or HST amount identified on your FedEx invoice.

For additional information, visit the Government of Prince Edward Island website.

British Columbia (BC) Tax Changes


On April 1, 2013, the Government of British Columbia (BC) will eliminate the Harmonized Sales Tax (HST) rate of 12% and reinstate the Provincial Sales Tax (PST) rate of 7% plus the Goods and Services Tax (GST) rate of 5%.

The PST will not apply to shipments originating outside of, destined to, or within BC, when billed separately by a freight or courier company (e.g., FedEx).

For additional information, please visit the Government of British Columbia website.

Quebec Tax Changes


On January 1, 2013, the Government of Quebec harmonized the Quebec Sales Tax (QST) with the Goods and Services Tax (GST). As a result, the QST is now applied on the GST-excluded value of the good or service as opposed to the GST-included value under the previous rules. The QST has also increased from 9.5% to 9.975%, resulting in a harmonized tax rate of 14.975%, equivalent to the combined GST and QST effective rate under the previous rules.

Please note that the GST will still apply to shipping charges for shipments originating outside Quebec and destined to Quebec. The GST and QST will apply to shipping charges for intra-Quebec shipments.

For additional information, please visit the Revenu Québec website.