Sales taxes in Canada
In Canada, three types of sales taxes are levied. These are as follows:
- Provincial sales taxes (PST), levied by the provinces
- Goods and Services Tax (GST), a value-added tax levied by the federal government
- The combined Harmonized Sales Tax (HST), also a value-added tax, a single, blended combination of the PST and GST which is used in Ontario, and the Atlantic provinces of New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The HST is then collected by the Canada Revenue Agency, which then remits the appropriate amounts to the participating provinces.
Every province except Alberta has implemented either a provincial sales tax or the Harmonized Sales Tax. The federal GST rate is 5 percent, effective January 1, 2008.
The territories of Yukon, Northwest Territories, and Nunavut do not have either the HST or territorial sales taxes. Only the GST is collected. The three northern jurisdictions are heavily subsidized by the federal government, and its residents receive some additional tax concessions due to the high cost of living in the north.[1]
Provincial sales taxes [edit]
Separate Provincial Sales Taxes (PST) are collected in the provinces of British Columbia, Manitoba, Quebec (Quebec Sales Tax or QST, French: Taxe de vente du Québec or TVQ), and Saskatchewan. Prince Edward Island switched to a HST on April 1 2013, the same date that British Columbia reverted to a separate GST/PST after their adoption of a HST in 2010 was rejected in a referendum.[2] Goods to which the tax is applied vary by province, as does the rate. Moreover, for those provinces whose provincial sales tax is applied to the combined cost and GST, provincial revenues decline or increase with respective changes in the GST. Of the provincial sales taxes, only the QST (and the HST) are value-added; the rest are cascading taxes.
| Province | Type | Prov. rate (%) | Total Tax Rate (%) | Notes |
|---|---|---|---|---|
| Alberta | GST | 0 | 5 | There is a 4% tax on lodging and 4% tax on hotel room fees. |
| British Columbia | GST + PST | 7 | 12 |
Main article: Sales taxes in British Columbia
Reverted to a separate GST/PST on April 1st, 2013, with a PST of 7%, after their adoption of a HST in 2010 was rejected in a referendum.[2] |
| Manitoba | GST + PST | 7 | 12[3] | There is a 5% tax on lodging and 5% tax on hotel room fees. Manitoba provincial sales tax will go up 1% to total 8% on July 1, 2013.[4] |
| New Brunswick | HST | 8 | 13 | |
| Newfoundland and Labrador | HST | 8 | 13 | |
| Northwest Territories | GST | 0 | 5 | |
| Nova Scotia | HST | 10 | 15[5] | July 1, 2014 and July 1, 2015 will see the Nova Scotia HST rate reduced to 14% and 13% respectively. |
| Nunavut | GST | 0 | 5 | |
| Ontario | HST | 8 | 13 | Restaurant meals (whether dine-in or take-out, and including fast food) under $4 are exempt from the Ontario portion.[6][7] Alcoholic beverages purchased from licensed restaurants are also subject to an Ontario rate of 13%.[7] |
| Prince Edward Island | HST | 9 | 14[8] | Provincial rate was decreased from 10% when PEI switched to a HST on April 1 2013.[2] |
| Quebec | GST + QST | 9.975 | 14.975[9] | Books are taxed at 5.0% (considered essential goods for QST but not for GST) |
| Saskatchewan | GST + PST | 5 | 10[10] | There is a separate 10% liquor consumption tax. The non-alcoholic portion of a restaurant meal is not taxed. |
| Yukon | GST | 0 | 5 |
 |
References [edit]
- ^ Taxtips.ca
- ^ a b c "P.E.I. to introduce HST by next April". The Canadian Press. 2012-04-19. Retrieved 2012-04-19.
- ^ "Retail Sales Tax". Manitoba Finance. Manitoba Ministry of Finance. 2009. Retrieved 2009-09-26.
- ^ http://news.nationalpost.com/2013/04/16/na0417-cp-manitoba/
- ^ "HST hike highlights N.S. budget". CBC News. 6 April 2010. Retrieved 2010-04-06.
- ^ "More Point-Of-Sale Exemptions for Ontario HST". Queen's Printer for Ontario. 2009. Retrieved 2012-10-22.
- ^ a b "HST Checklist". Canadian Restaurant and Foodservices Association. Retrieved 2012-10-22.
- ^ Public Treasury, Prince Edward Island Department of (2008-01-07). "Tax and Land Information Website: Revenue Tax (PST)". Retrieved 2009-09-26.
- ^ "QST and GST/HST". Revenu Quebec. Retrieved 2013-01-03.
- ^ "Provincial Sales Tax - Finance". Saskatchewan Ministry of Finance. 2007. Retrieved 2009-09-26.
External links [edit]
- Canada Revenue Agency website
- Government of British Columbia: Sales Taxes
- Revenu Quebec website
- Revenu Québec (General Information Concerning the QST and the GST/HST)
- Article on Canadian real estate sales tax
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