Overview of Canadian Sales Taxes

Canadian Sales Taxes

Canadian Sales Taxes

There are different sales taxes levied in Canada. The tax charged depends
on both the province and goods or services acquired.

GET RATES GET RATES

Overview

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.
alt

Canadian Sales Tax Table (Updated March 23, 2017)

PROVINCE APPLICABLE SALES TAX GST1 HST1 QST2 PST3 TOTAL
Alberta GST 5%       5%
British Columbia GST + PST 5%     7% 12%
Manitoba GST + PST 5%     8% 13%
New Brunswick HST   15%     15%
Newfoundland and Labrador
HST   15%     15%
Northwest Territories
GST 5%       5%
Nova Scotia HST   15%     15%
Nunavut GST 5%       5%
Ontario HST   13%     13%
Prince Edward Island
HST   15%     15%
Quebec GST + QST 5%   9.975%   14.98%
Saskatchewan
GST + PST 5%     6% 11%
Yukon GST 5%       5%

1 Generally, GST/HST for shipments is calculated based on the rate applicable in the destination province instead of the origin province.

2 Generally, QST is only applicable to shipments within Quebec (i.e., when Quebec is both the shipment origin and destination province).

3 Generally, PST is not applicable to shipping charges, including most surcharges. However, HST is applicable in most cases.

This tax table is provided as a courtesy and for informational purposes only.
For current tax rates and specific guidelines, visit the Canada Revenue Agency or Revenu Québec website.


A Manitoba manufacturer hires FedEx to transport products from its plant in Winnipeg to a wholesaler in Toronto.

 

Canadian Sales Tax-Example 1

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.

Transportation Cost: CAD$100    
Ontario HST (13%): CAD$13    
Total: CAD$113    

Un fabricant du Québec fait appel à FedEx pour transporter des marchandises depuis son usine à Montréal jusqu'à un grossiste de Québec.

Canadian Sales Tax-Example 2

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.

 

Transportation Cost: CAD$100    
GST (5%): CAD$5    
Total: CAD$105    

A Quebec manufacturer hires FedEx to transport products from its plant in Montreal to a wholesaler in Quebec City.

Canadian Sales Tax-Example 3

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.

Transport Cost: CAD$100    
GST (5%): CAD$5    
QST (9.975%): CAD$9.98    
Total:
CAD$114.98    

 

Additional Information

 

FedEx Express GST/HST number: 121832950RT0001

FedEx Express QST number: 1003874920TQ0002

FedEx Ground GST/HST number: 140728460RT0001

FedEx Ground QST number: 1018940643TQ0001