💵 GST/HST — Which Tax Rate to Charge on Sales in Canada

This page explains how Canadian businesses determine **which GST (Goods and Services Tax) or HST (Harmonized Sales Tax) rate to charge** on taxable supplies of goods and services that they make in Canada. Source: Canada Revenue Agency — GST/HST rate guidance.

📍 Basics — Place of Supply Rules

The **rate you charge depends on the “place of supply”** — basically where the sale or supply is considered to take place for GST/HST purposes. This determines whether you charge the **federal GST** or the **combined HST** in participating provinces.

📊 Current GST/HST Rates in Canada

  • 🟢 **5% GST** — applies in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan and Yukon.
  • 🔵 **13% HST** — Ontario.
  • 🟡 **14% HST** — Nova Scotia (new rate effective April 1, 2025).
  • 🔴 **15% HST** — New Brunswick, Newfoundland and Labrador, Prince Edward Island.

These rates apply to most **taxable supplies** of goods and services made in the respective jurisdictions — unless a supply is **zero-rated** or **exempt**.

🧠 Zero-Rated vs Exempt Supplies

• Zero-rated supplies (like basic groceries or certain exported goods) are taxed at **0%**, meaning you do not collect GST/HST but may still claim input tax credits.
• Exempt supplies (e.g., certain financial services) are not taxable and you cannot claim input tax credits.

📍 Examples of How Rates Apply

  • If you sell and deliver a chair in Vancouver (B.C.) to a buyer in Ontario, the **place of supply** is Ontario — so **13% HST** applies.
  • If you sell a service in Quebec, charge **5% GST** if the supply is taxable.

💼 Special Cases and Digital Supplies

For digital products/services, cross-border platforms, and other special scenarios, **place-of-supply rules** determine whether GST/HST applies and at what rate. For detailed rules, see CRA guidance on digital economy tax obligations.

🧾 Receipts, Invoices & Collections

When you charge GST/HST, you must clearly show the tax charged on invoices or receipts, and then **collect** it from your customer to **remit to the CRA** on your GST/HST return.

📌 Filing and Remitting

After collecting GST/HST from customers, you must report and **remit the tax** to the CRA according to your filing frequency. Input tax credits can reduce the net tax payable if you paid GST/HST on business expenses.

📚 Helpful Links