Sales taxes in Canada

In Canada, there are two types of sales taxes levied. These are :

Taxation
An aspect of fiscal policy

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 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.[1] 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 Quebec and in Prince Edward Island, PST was applied to the combined sum of sale price 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 GST05 There is a 4% tax on lodging and 4% tax on hotel room fees.
British Columbia GST + PST712
Main article: Sales taxes in British Columbia
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 referendum.[1]
Manitoba GST + RST7 12[2] The RST was increased one point to 8% on July 1, 2013. It reverted to 7% as of July 1, 2019 and is planned to drop to 6% as of July 1, 2020.[3][4]
There is a 5% tax on lodging and 5% tax on hotel room fees.
New Brunswick HST1015 The HST was increased two points to 10% with an overall tax of 15% on July 1, 2016.[5]
Newfoundland and Labrador HST10 15 The HST was increased two points to 10% with an overall tax of 15% on July 1, 2016.[6]
Northwest Territories GST05
Nova Scotia HST1015[7] 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.[8]
Nunavut GST05
Ontario HST813
Prince Edward Island HST1015[9] The HST was increased one point to 15% on October 1, 2016.[1]
Quebec GST + QST9.975[10]14.975[11] 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%.[12][13]
Saskatchewan GST + PST 611 The 6% rate is effective for goods and services effective March 23, 2017.[14] Effective April 1, 2017, New Homes, restaurant meals and other prepared food and beverages are subject to PST.[15] There is a separate 10% liquor consumption tax. PST is not applicable for any exempt business in Lloydminster.
Yukon GST05

References
  1. "P.E.I. budget announces increase in HST". CBC News. April 19, 2016. Retrieved May 1, 2016.
  2. "Retail Sales Tax". Manitoba Finance. Manitoba Ministry of Finance. 2013. Retrieved July 3, 2013.
  3. Siragusa, Austin. "Manitoba provincial sales tax rate drops to 7% on Canada Day". Global News. Retrieved July 8, 2019.
  4. Froese, Ian. "Pallister Government to cut PST by 1 percentage point using revenues from its own carbon tax". CBC Manitoba. Retrieved March 5, 2020.
  5. http://www2.gnb.ca/content/gnb/en/departments/finance/taxes/hst.html
  6. http://www.fin.gov.nl.ca/fin/tax_programs_incentives/personal/hst.html
  7. "HST hike highlights N.S. budget". CBC News. April 6, 2010. Retrieved April 6, 2010.
  8. http://www.news957.com/2013/12/17/nova-scotia-books-in-no-shape-for-legislated-cut-to-hst-finance-minister/
  9. Public Treasury, Prince Edward Island Department of (January 7, 2008). "Tax and Land Information Website: Revenue Tax (PST)". Retrieved September 26, 2009.
  10. As of January 1 2013, Quebec officially changed the QST rate to 9.975. Previously, it had a nominal rate of 9.5 (Quebec raised the QST from 7.5 to 8.5 on Jan 1 2011, and then from 8.5 to 9.5 on Jan 1 2012), but the QST was applied to the combined sum of sale price and GST, making the effective QST rate 9.975. As of January 1 2013, the rate no longer applies to the combined sum of sale price and GST, and is simply 9.975.
  11. "QST and GST/HST". Revenu Quebec. Retrieved January 3, 2013.
  12. "Revenu Québec - Calculating and Collecting the Tax on Lodging".
  13. "Revenu Québec - Establishments Subject to the Tax on Lodging".
  14. "IN 2017-01 PST Transitional Rules" (PDF). SK PST. Retrieved March 24, 2017.
  15. "Restaurants, Caterers and Other Businesses Selling Prepared Food and Beverage" (PDF). Saskatchewan Ministry of Finance. March 22, 2017. Retrieved March 23, 2017.

Further reading
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