PRACTICE AREAS

Goods & Services Tax (GST)

The Goods and Services Tax (GST) is a 6% tax on the supply of most goods and services in Canada. Consumers pay the GST on all taxable goods and services (minus zero-rated and exempt goods and services); businesses charge GST on all taxable goods and services.

There are some exceptions: provincial and territorial governments, Native Americans, and “small suppliers” do not pay the GST. (A small supplier is a sole proprietor, partnership or corporation whose total taxable revenues before expenses are $30,000 or less in the last four consecutive calendar quarters; or nonprofits with total taxable revenues of $50,000 or less in the last four consecutive calendar quarters.) Our experts will help you navigate any issues with the GST.

Provincial Sales Tax (PST)

In many Canadian provinces, a Provincial Sales Tax (PST) is charged on many retail good and services. In all provinces, except Prince Edward Island and Quebec, PST is charged on the selling price of the item before Goods & Services Tax (GST) is applied. GST is charged on the selling price before PST is applied, which prevents GST being charged on PST.

In Quebec and Prince Edward Island only, PST is charged according to the total of the selling price plus GST. When both GST and PST apply to a given sale, each tax must be shown separately on the receipt. Our experts will help you navigate any issues with the PST.

Harmonized Sales Tax (HST)

Three Canadian provinces—Nova Scotia, New Brunswick, and Newfoundland & Labrador—have “harmonized” their provincial sales tax (PST) with Canada’s overall GST to create something called Harmonized Sales Tax (HST). As a result, these provinces are referred to as “participating provinces.”

HST is composed of the GST and the 8% provincial tax. It applies to the same general goods and services taxable under GST, and follows the same general rules. GST/HST registrants collect GST on taxable supplies (other than zero-rated supplies) of goods and services made in Canada outside the three participating provinces. For supplies made in the participating provinces, they collect HST. All GST registrants are automatically registered for HST. Our experts will help you navigate any issues with the HST.

Quebec Sales Tax (QST)

Although anyone engaged in commercial activities in Canada must register for the GST, those who do so within Quebec must also collect Quebec Sales Tax (QST). In other words, if you engage in commercial activities in Québec, you cannot register for the GST without registering for the QST. Revenu Québec (the Quebec tax agency) receives and processes applications for GST registrations made by persons carrying on commercial activities in Québec. There are certain exceptions to both GST and QST. Our experts will help you navigate any issues with the QST.