Sales taxes in Canada
|An aspect of fiscal policy|
- 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 four Atlantic provinces: New Brunswick; Newfoundland and Labrador; Nova Scotia; and Prince Edward Island. British Columbia adopted HST between 2010 and 2013, but eventually abolished the system after a province-wide referendum. The HST is collected by the Canada Revenue Agency, which then remits the appropriate amounts to the participating provinces.
The territories of Yukon, Northwest Territories, and Nunavut have no territorial sales taxes, so 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.
Provincial sales taxes
Separate Provincial Sales Taxes (PST) are collected in the provinces of British Columbia, Saskatchewan, Manitoba (Retail Sales Tax or RST) and Quebec (Quebec Sales Tax or QST, French: Taxe de vente du Québec or TVQ). 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. Goods to which the tax is applied vary by province, as does the rate. In all provinces where the provincial sales tax is collected, the tax is imposed on the sale price without GST. (In the past, in Québec and PEI, PST was applied to the combined cost and 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||referendum.Reverted to a separate GST/PST on April 1, 2013, with a PST of 7%, after their adoption of a HST in 2010 was rejected in a|
|Manitoba||GST + RST||8||13||There is a 5% tax on lodging and 5% tax on hotel room fees.|
|New Brunswick||HST||10||15||The HST was increased two points to 10% with an overall tax of 15% on 1 July 2016.|
|Newfoundland and Labrador||HST||10||15||The HST was increased two points to 10% with an overall tax of 15% on 1 July 2016.|
|Nova Scotia||HST||10||15||Rates were meant to be reduced to 14 and 13% on July 1, 2014 and July 1, 2015 respectively. However, the government has stated that the province cannot afford reductions.|
|Ontario||HST||8||13||Restaurant meals (whether dine-in or take-out, and including fast food) under $4 are exempt from the Ontario portion. Alcoholic beverages purchased from licensed restaurants are also subject to an Ontario rate of 13%.|
|Prince Edward Island||HST||10||15||The HST was increased one point to 15% on 1 October 2016.|
|Quebec||GST + QST||9.975||14.975||Books are taxed at 5.0% (considered essential goods for QST but not for GST). There is an additional tax on tourist lodgings such as hotels which varies by region, ranging from $2 per night to 3.5%.|
|Saskatchewan||GST + PST||6||11||The 6% rate is effective for goods and services effective March 23, 2017. Effective April 1, 2017, New Homes, restaurant meals and other prepared food and beverages are subject to PST. There is a separate 10% liquor consumption tax. PST is not applicable for any exempt business in Lloydminster.|
- "P.E.I. budget announces increase in HST". CBC News. 2016-04-19. Retrieved 2016-05-01.
- "Retail Sales Tax". Manitoba Finance. Manitoba Ministry of Finance. 2013. Retrieved 2013-07-03.
- "HST hike highlights N.S. budget". CBC News. 2010-04-06. Retrieved 2010-04-06.
- "More Point-Of-Sale Exemptions for Ontario HST". Ministry of Finance. Queen's Printer for Ontario. 2009-11-12. Retrieved 2015-03-22.
- "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.
- As of January 2013, Quebec officially changed the QST rate to 9.975. Previously, it had a nominal rate of 9.5 but was applied on top of the GST, making the effective rate 9.975. As of January 2013, the rate no longer applies on top of GST and is simply 9.975.
- "QST and GST/HST". Revenu Quebec. Retrieved 2013-01-03.
- "Revenu Québec - Billing the 3% or 3.5% Tax on Lodging - Businesses".
- "Revenu Québec - Tourism Regions Where the Tax on Lodging Applies - Businesses".
- "Provincial Sales Tax - Finance". Saskatchewan Ministry of Finance. 2007. Retrieved 2009-09-26.
- "IN 2017-01 PST Transitional Rules" (PDF). SK PST. Retrieved 24 March 2017.
- "Restaurants, Caterers and Other Businesses Selling Prepared Food and Beverage" (PDF). Saskatchewan Ministry of Finance. 22 March 2017. Retrieved 23 March 2017.
- Bird, R. M. (2012). The GST/HST: Creating an Integrated Sales Tax in a Federal Country. Rotman School of Management Working Paper, (2115620).