Canadian Taxes
Canadian Taxes Overview
As a Canadian business owner, it's important to know how and when to charge sales taxes for the goods and services you sell and supply to your customers. Our guide to charging and collecting sales tax will provide you with an understanding of your responsibilities, as well as some valuable resources to help you charge sales taxes.
Charging Taxes
Do you sell goods or provide services in Canada? If so, you are required to collect sales tax from your customers.
Depending on the province or territory in which you operate your business, you need to collect either:
- A combination of GST and PST
- GST only
- HST (combines PST with GST to create one tax).
Below is the list of HST-participating provinces:
| Province | HST tax rate |
|---|---|
| New Brunswick | 15% |
| Newfoundland and Labrador | 15% |
| Nova Scotia | 15% |
| Ontario | 13% |
| Prince Edward Island | 5% |
If you operate in the following provinces, you need to collect 5% GST as well as provincial sales tax, with provincial sales tax rates as follows:
| Province | Provincial tax rate |
|---|---|
| British Columbia | 7% provincial sales tax (PST) on retail price only |
| Manitoba | 7% retail sales tax (RST) on retail price only |
| Quebec | 9.975% Quebec sales tax (QST) on retail price only |
| Saskatchewan | 6% provincial sales tax (PST) on retail price only |
If you operate in the province of Alberta or in one of the three territories (Northwest Territories, Nunavut or the Yukon), you do not need to collect sales tax on goods and services beyond the 5% GST.
Summary of Tax rates per Province
Below is a table summarizing the tax rates for all the Canadian provinces and territories.
Updated almost 4 years ago