A Canadian taxpayer is bounded to pay a number of taxes as and according to the situation. Furthermore, the circumstances. The change circumstances applies as well as a Canadian taxpayer changed circumstances. Hence, might also qualify them from getting tax exemptions as according to situation changed circumstances. As a HST Company, you need to charge the Harmonized Sales Tax. Also, the GST or the Goods & Services Tax. Hence, as well as Provincial Sales Tax are ones that applies regards to the Provincial differentiation or the Provincial boundaries. Obviously, it varies from one Province to another Province. In addition to this, from one Territory to another territorial boundary.

The Goods & Services Tax varies according to the goods. Thus, as well as the products being purchased. Also, it varies regards to the services being taken. It is a critical part of the services industry. Obviously, as services tax makes you qualify for the services that are being taken by you. These services includes the services in the health sector. Also, the services in the safety & surveillance industry. Further, the services regards to the emergency services in Canada that includes Police, Fire and Ambulance (Health). Also, a number of other services that makes the services industries in Canada what they are. However, the dependencies are on the tax.

Also Read: 3 Reasons Why You Need Someone To Help You With Harmonized Sales Tax


Here is a complete guide that will help you regards to the taxes in Canada. These are as follows;


HST or Harmonized Sales Tax was something that was introduced in the year 1997 with a harmonized sales tax rate. This is a rate that combines the Provincial Sales Tax (PST) with the Federal Goods & Services Tax (GST).

HST is simply a consumption tax which is levied at the Point of Sale. That is, when the sales is exactly happening. This is something which adds a percentage to the selling price of goods and services. Obviously, that are collected from the customers. Thus, a HST company, can be regarded as one charging the HST from the customers. Consumption tax is what it can also be elaborated as. That is, regards to the consumption rate also known as the rate of consumption.

The HST Company Program or simply a HST Program. Ironically, aims to combine both the Federal GST. In addition to this, the PST to become one standard rate. Precisely, for the sake of promoting consistency as well as improve the efficiency levels associated with sales tax collection. The number of Provinces that makes HST or Harmonized Sales Tax applies to their Provincial boundaries are just five provinces. Therefore, as a matter of fact, it doesn’t exactly applies in the rest of the five provinces. Neither, has it applied in the three territories of Canada. The five Provinces includes Ontario with a HST of 13%, PEI or Prince Edward Island with a HST of 15% & Nova Scotia with a HST of 15%. Finally, it’s the New Brunswick – HST 15% and New Found land & Labrador –HST 15%.


It is one of the common sales tax across the Province Canada and is known as the GST or the Goods & Services Tax.

The GST in Canada is normally 5% on the supply of most goods. As well as, the services purchased in Canada. As a supplier of Goods and Services, you must charge and collect the GST in each Province of Canada. However, there is an exception. Something, which we have discussed and highlighted earlier. That is, unless you supply exempt or zero-rated goods and services to your customers.

There are Provinces in Canada that charge only GST (no PST). These are Alberta, Yukon, Nunavut, and the Northern Territories.

PROVINCIAL SALES TAX (PST)- ‘A Variance For The Canadian Taxpayer’:

Provincial Sales Tax or PST is according to the various Provinces of Canada. On top of this, there are certain limitation. That is, regards to the PST. Importantly, as not all Provinces take part in this tax program. In certain Provinces the PST is named with a different name. However, everything else is the same except for the name.

The Provinces where PST applies. Thus, includes the Province British Columbia where the PST is 7% PST on the retail price. The second Province in the list of Provinces is Manitoba. That is, 8% retail sales tax (RST) on the retail price. The Province Saskatchewan: 6% PST on Retail Price. Finally, the Quebec: 9.975% Quebec Sales Tax (QST).

In the Province Manitoba PST is known with a different name. Thus, as we mentioned earlier there are certain Provinces where the name is not the same. That is, a PST. It is known as RST or Retail Sales Tax in Manitoba Province. QST or Quebec Sales Tax is what it is known as in the Province Quebec. The latter one being the only Province of Canada. That is, the French-speaking Province. Hence, where the tax is named after the name of the Province. That is, QST or Quebec Sales Tax.




There are obviously certain factors that affects the tax rate. The three main ones are type of supply. Also, the location where the supply is made from. Supply is made to whom, as a final of the three factors. All these three factors contribute to the GST/HST taxation rate.