What is the difference between GST, HST, and PST?
GST is the 5% federal Goods and Services Tax charged nationwide. HST is a harmonized tax that combines GST with a provincial portion into a single rate (e.g., 13% in Ontario, 15% in the Atlantic provinces). PST is a separate provincial sales tax charged on top of GST in provinces such as BC, Saskatchewan, and Manitoba. Quebec charges QST alongside GST.
Which provinces have HST?
Ontario (13%), Nova Scotia (14% as of the recent change), New Brunswick (15%), Newfoundland and Labrador (15%), and Prince Edward Island (15%) use the Harmonized Sales Tax. Alberta and the territories charge only the 5% GST with no provincial sales tax.
Do I charge sales tax based on my location or the customer's?
For most goods and services, GST/HST is generally charged based on the place of supply, which is usually where the customer receives the product or service. The applicable provincial rate follows those place-of-supply rules, not simply the seller's address.
Do businesses get the sales tax back?
GST/HST registrants can generally claim input tax credits to recover the GST/HST they pay on business purchases, so the tax is effectively borne by the final consumer. PST is often not recoverable in the same way, depending on the province.