GST is a federal tax of 5% that applies across all of Canada on most goods and services. It is administered by the Canada Revenue Agency (CRA).
HST combines the federal GST with the provincial sales tax into a single tax. It applies in Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island. Rates range from 13% to 15%.
PST is a separate provincial tax in BC, Saskatchewan, and Manitoba. Quebec has a similar tax called QST. In these provinces you may need to register for both GST and PST separately.
If you are in Ontario, New Brunswick, Nova Scotia, PEI, or Newfoundland — you deal with HST only. In all other provinces, you deal with GST and possibly PST separately.
| Province | Tax Type | Rate |
|---|---|---|
| Ontario | HST | 13% |
| British Columbia | GST + PST | 12% |
| Alberta | GST only | 5% |
| Quebec | GST + QST | 14.975% |
| Nova Scotia | HST | 15% |
| New Brunswick | HST | 15% |
| Manitoba | GST + RST | 12% |
| Saskatchewan | GST + PST | 11% |
You must register for GST/HST when your total revenue exceeds $30,000 in any 12-month period. Below that threshold, registration is optional but voluntary registration allows you to claim Input Tax Credits.
Once you exceed $30,000 in revenue, you must register within 29 days. Failing to do so can result in penalties from the CRA.
A major benefit of being registered is that you can claim Input Tax Credits (ITCs) — recovering the GST/HST you paid on business expenses like software, equipment, and office supplies. Over a year, ITCs can add up to significant savings.
File online through the CRA My Business Account portal. The return summarizes total GST/HST collected, ITCs claimed, and the net amount owed or refunded.
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