Overview of Canadian Sales Taxes
The Canadian sales taxes include the Provincial Sales Tax (PST), the Quebec Sales Tax (QST), the Goods and Services Tax (GST), and the Harmonized Sales Tax (HST) which is a combination of the PST and the GST in some provinces.
- The GST applies to most goods and services made in Canada; however, certain exceptions may apply.
- The PST is a retail sales tax that is payable when a taxable good or service is acquired for personal or business use, unless a specific exemption applies.
- The HST generally applies to the same base of goods and services as the GST. The participating provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island) harmonized their PST with the GST to implement the HST.
- In Quebec, the most common sales taxes are the:
- GST, which is calculated at a rate of 5% on the selling price.
- QST, which is calculated at a rate of 9.975% on the selling price excluding the GST.
Canadian Sales Tax Table (Updated December 30, 2015)
|British Columbia||GST + PST||5%||7%||12%|
|Manitoba||GST + PST||5%||8%||13%|
|Newfoundland and Labrador4||HST||13%||13%|
|Prince Edward Island||HST||14%||14%|
|Quebec||GST + QST||5%||9.975%||14.98%|
|Saskatchewan||GST + PST||5%||5%||10%|
1Generally, GST/HST for shipments is calculated based on the rate applicable in the destination province instead of theorigin province.
2Generally, QST is only applicable to shipments within Quebec (i.e., when Quebec is both the shipment origin anddestination province).
3Generally, PST is not applicable to shipping charges, including most surcharges. However, HST is applicable in mostcases.
4The proposed increase to the provincial portion of the Newfoundland and Labrador Harmonized Sales Tax (HST),which was to take effect January 1, 2016 has been cancelled. For more information, please visit theCanada Revenue Agency website.
Calculation of Canadian Sales Taxes
A Manitoba manufacturer hires FedEx to transport products from its plant in Winnipeg to a wholesaler in Toronto.
The supply of this transportation service is subject to HST at a rate of 13% because the destination of the transportation service is in Ontario.
|Ontario HST (13%):||CAD$13|
An Ontario manufacturer hires FedEx to transport products from its plant in Toronto to a wholesaler in Montreal.
The supply of this transportation service is subject to GST at a rate of 5% because the destination of the transportation service is in Quebec. In this case, the QST does not apply because the transportation service originated outside of Quebec.
|Ontario GST (5%):||CAD$5|
A Quebec manufacturer hires FedEx to transport products from its plant in Montreal to a wholesaler in Quebec City.
The supply of this transportation service is subject to GST at a rate of 5%, plus QST at a rate of 9.975% because this is an intra-Quebec transportation service.
|Ontario GST (5%):||CAD$5|
|FedEx Express GST/HST number:||121832950RT0001|
|FedEx Express QST number:||1003874920TQ0002|
|FedEx Ground GST/HST number:||140728460RT0001|
|FedEx Ground QST number:||1018940643TQ0001|