Canadian HST/GST Guide: Province-by-Province

Canada's sales tax system is one of the most complex in the world for businesses operating across provincial boundaries. Unlike the US (state-by-state sales tax) or the UK (single national VAT), Canada uses a layered system where the federal government administers GST/HST, Quebec operates its own parallel QST system, and other provinces have their own retail sales taxes (RST) that operate alongside the federal tax — creating a compliance matrix that requires careful navigation.

For eCommerce businesses, importers, and any business with customers in multiple Canadian provinces, understanding which tax applies, at what rate, and how to remit it to the right authority is essential. Getting it wrong means collecting the wrong amount from customers, remitting to the wrong authority, or worse — missing the registration requirement entirely and accumulating a retroactive tax debt.

Key Takeaways

• GST/HST registration is required when your worldwide taxable supplies exceed CAD $30,000 in a single quarter or over four consecutive quarters
• Small supplier status (under $30,000) exempts most businesses from mandatory registration, but not taxi/ride-sharing or non-resident digital service providers
• Participating provinces (Ontario, PEI, Nova Scotia, New Brunswick, Newfoundland & Labrador) have HST — one combined federal+provincial rate administered by CRA
• Quebec has its own QST (9.975%) administered by Revenu Québec — separate registration and filing from GST
• British Columbia, Manitoba, and Saskatchewan have their own provincial sales tax (PST/RST) — businesses may have both GST and PST obligations
• Place of supply rules determine which province's tax applies to a transaction — critical for interprovincial and international sales
• Non-resident businesses selling digital products/services to Canadian consumers must register under the simplified GST/HST regime
• Input tax credits (ITCs) allow recovery of GST/HST paid on business inputs; QST has parallel input tax refund (ITR) system

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Canadian Sales Tax Rates by Province (2026)

Harmonised Sales Tax (HST) provinces:

Ontario, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland & Labrador participate in the HST framework — the provincial component is blended with the 5% federal GST into a single harmonised rate. These provinces use one CRA-administered system, one return, and one remittance.

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GST/HST Registration: The $30,000 Threshold

Small supplier exemption:

A business is a "small supplier" if its total taxable revenues (globally — not just in Canada) do not exceed CAD $30,000 in the last four consecutive calendar quarters and in the current calendar quarter.

If your worldwide taxable revenues in any single quarter exceed $30,000, you cease to be a small supplier at the end of that quarter. If you exceed $30,000 over four consecutive quarters but not in any single quarter, you lose small supplier status at the beginning of the month following the month in which you exceeded $30,000.

Mandatory registration regardless of threshold:

• Taxi and ride-sharing drivers: Register from the first dollar
• Non-resident vendors of digital products/services to Canadian consumers: Register under simplified regime if Canadian revenues exceed $30,000
• Non-residents selling goods stored in Canada: Register under standard regime

Registration process:

Register online through the CRA My Business Account or BizFile+ portal. You will receive a Business Number (BN) and a program account (GST/HST RT0001). Registration is effective from the date you apply (if already over threshold) or from the date you choose if registering voluntarily.

Small supplier threshold by entity type:

Note that the $30,000 threshold applies differently for charities (public service bodies) — charities must register only if worldwide taxable revenues exceed $50,000. And government bodies have their own rules.

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Place of Supply Rules

The place of supply rules determine which provincial rate applies to a given transaction — this is critical for businesses selling across provincial boundaries.

Goods — physical delivery:

The place of supply for goods is where the purchaser takes delivery or where delivery is made. A business in Alberta selling goods to an Ontario customer and shipping to Ontario charges 13% HST (Ontario rate). The same business selling to a customer in British Columbia ships there and charges 5% GST + 7% PST = 12% total (but GST and PST have separate remittance obligations).

Services:

The place of supply for services is generally where the service is performed or where the recipient receives the service. For services performed in multiple provinces, apportion based on the value of services in each province. For remotely-delivered services, special rules apply based on where the customer is located.

Intangible personal property (software, digital downloads):

Digital products, software licences, and intangible property have place of supply rules based on: where the property can be used — if restricted to one province, that province's rules apply. If no geographic restriction, the province with the highest connection to the supply (usually where the customer is located) applies.

Telecommunications services:

Phone plans, internet services, and related services have complex place of supply rules based on where the originating or terminating address is located. Telecom companies and ISPs have specialised guidance.

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HST: Filing and Remittance for Participating Provinces

For businesses registered for GST/HST, a single return covers both the federal GST and the provincial HST component across all participating provinces. You file with CRA on Form GST34 (electronic) or GST62 (paper).

Filing frequency:

• Annual: If your annual GST/HST taxable revenues are $1,500,000 or less (small business option). You can make quarterly or annual payments with an annual return.
• Quarterly: If your annual taxable revenues are between $1,500,001 and $6,000,000
• Monthly: If your annual taxable revenues exceed $6,000,000

Return deadlines:

Annual filers: Return due 3 months after fiscal year end; payment due same date (or by the first instalment due date if applicable). Quarterly filers: Return and payment due 1 month after quarter end. Monthly filers: Return and payment due 1 month after month end.

Instalment requirements:

Large businesses (over $3,000 net tax per year) must make quarterly instalments. Missed instalments attract interest at the prescribed rate. The CRA calculates a "net tax" position quarterly — if you consistently remit HST, instalments keep you current without large year-end payments.

Input Tax Credits:

Claim ITCs for GST/HST paid or payable on purchases used in your commercial activities. Document ITCs with supplier invoices, credit card statements (for smaller amounts), and import documents (for GST at the border). Time limits for claiming ITCs: 4 years for most businesses; 2 years for large businesses (over $6M revenues).

ITC restrictions for large financial institutions:

Financial institutions face special ITC restriction rules that limit their ITC claims. If you operate a financial service, consult with a tax advisor before claiming ITCs on blended activities.

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Quebec Sales Tax (QST)

Quebec does not participate in the HST framework. Businesses selling taxable goods and services to Quebec customers must register for both GST (with CRA) and QST (with Revenu Québec) separately, file separate returns, and make separate remittances.

QST registration threshold:

The QST small supplier threshold mirrors the federal GST threshold: CAD $30,000 in worldwide taxable sales triggers mandatory QST registration. Register through the Revenu Québec portal (clicSÉQUR or in-person at a Revenu Québec office).

QST rate:

QST is 9.975%. Combined with 5% federal GST, the total tax on a taxable supply in Quebec is 14.975% (not exactly 15% due to the QST being applied to a slightly different base).

QST Input Tax Refunds (ITRs):

The QST has its own input tax refund (ITR) system parallel to federal ITCs. Claim ITRs for QST paid on purchases used in commercial activities in Quebec. Filing frequency and deadlines mirror the federal system but are separate.

Non-resident sellers to Quebec:

Non-residents selling digital services or goods to Quebec consumers must register for both federal GST and Quebec QST. Revenu Québec operates a separate simplified QST registration for non-residents (the "specified QST registration" system for digital economy supplies).

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Provincial Sales Tax (PST): BC, Saskatchewan, Manitoba

British Columbia, Saskatchewan, and Manitoba have not harmonised with the federal GST. They operate separate retail sales tax systems alongside the federal 5% GST.

British Columbia PST (7%):

Administered by the BC Ministry of Finance. You must register for PST if you sell goods in BC, provide software (defined broadly) to BC customers, or provide certain taxable services to BC customers. The PST small business threshold is $10,000 in annual BC sales — significantly lower than the GST threshold.

BC PST exempt categories include: basic groceries, prescription drugs, most clothing (for children under 15), bicycles, and zero-emission vehicles. Taxable items include: general merchandise, software, most electronics, tobacco, and most vehicles.

Saskatchewan PST (6%):

Administered by the Saskatchewan Ministry of Finance. Applies to taxable goods sold in Saskatchewan and certain services. The registration threshold is similar — any business making taxable sales in Saskatchewan must generally register. Saskatchewan PST applies to software and SaaS services, including sales by non-Saskatchewan businesses to Saskatchewan customers.

Manitoba RST (7%):

Called Retail Sales Tax (RST), administered by Manitoba Finance. Registration required for businesses selling taxable goods or certain services to Manitoba customers. Manitoba is the most aggressive Canadian province in extending sales tax to digital services and SaaS — foreign sellers of software and streaming services to Manitoba customers have registration obligations.

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Non-Resident Digital Economy Sellers

As of July 1, 2021, non-resident businesses selling digital products, digital services, and certain platform-facilitated supplies to Canadian consumers must register for GST/HST under a simplified regime if their Canadian revenues exceed CAD $30,000 over four consecutive calendar quarters.

Who this applies to:

• Streaming services (Netflix, Spotify, etc.)
• App stores selling apps to Canadian users
• Online gaming companies
• SaaS providers with Canadian consumer customers
• Platform operators facilitating third-party sales of accommodation and short-term rentals

Simplified registration:

The simplified GST/HST registration does not require a Canadian Business Number. Register through the CRA's non-resident supplier registration portal. You report and pay GST/HST quarterly in CAD. No ITCs are claimable under the simplified system (you can claim ITCs only through full registration).

Which provincial tax applies:

Under the simplified system, use the province of the customer's address to determine which HST rate applies (for participating provinces) or whether you charge only 5% GST (for non-participating provinces). You charge HST at the applicable rate and remit it all to CRA — no separate provincial remittance.

Marketplace facilitator rules:

If you sell through a marketplace (Amazon, Shopify Marketplace, Etsy) that qualifies as a "digital platform operator," the platform may be responsible for collecting and remitting GST/HST on your behalf for qualifying sales. Verify with your platform whether they assume this responsibility — if they do, you do not charge or collect for those sales.

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Frequently Asked Questions

If I am a small supplier, can I still register voluntarily for GST/HST?

Yes. Small suppliers can register voluntarily for GST/HST at any time. Voluntary registration is beneficial if you have significant business input costs with GST (allowing you to claim ITCs) or if your customers are businesses who would prefer to deal with a registered supplier. Once registered, you must charge and collect GST/HST on all taxable supplies and file regular returns — you cannot be selectively registered.

Do I need separate registrations for each province?

For HST provinces (Ontario, Nova Scotia, New Brunswick, PEI, Newfoundland), one GST/HST registration with CRA covers all. For Quebec, you need a separate QST registration with Revenu Québec in addition to your GST registration. For BC, Saskatchewan, and Manitoba PST/RST, you need separate provincial registrations with each province's tax authority. Alberta, Northwest Territories, Nunavut, and Yukon have no provincial sales tax.

How do I handle customers who give me incorrect addresses to avoid tax?

CRA and provincial tax authorities recognise this risk. The rules generally allow you to rely on the customer's address unless you have reasonable cause to believe it is incorrect. Maintain address records. If you know or suspect an address is fraudulent, you must use reasonable information to determine the correct province. For digital services, secondary address indicators (payment method billing address, IP address, phone number prefix) can be used when the primary address indicator is unavailable or inconsistent.

What is the instalment payment requirement for GST/HST?

Businesses with annual net GST/HST above $3,000 must make quarterly instalment payments. Instalment amounts can be calculated based on: (1) your prior year actual net tax, (2) your estimated current year tax, or (3) equal quarterly amounts based on the prior year's liability. CRA assesses arrears interest if instalments are less than required. Most accounting software can calculate and schedule instalment payments.

Can I claim ITCs on a vehicle I use for both business and personal purposes?

You can claim ITCs only for the business-use portion of a vehicle. For a vehicle used 60% for business, claim 60% of the GST paid on purchase and ongoing expenses. Keep a mileage log documenting business vs. personal use. Luxury vehicles have additional restrictions — the maximum capital cost for ITC purposes on a passenger vehicle is limited (currently CAD $36,000 + GST for purchased vehicles). Work with your accountant to document the business use and calculate the correct ITC claim.

What records do I need to keep for GST/HST compliance?

Keep all records for 6 years after the end of the year they relate to. Required records: all invoices and receipts for supplies made and received, GST/HST returns filed, accounts and supporting documents for each return, and any contracts relevant to your commercial activities. Electronic records are acceptable. For ITCs, you need supplier documentation that includes the supplier's business number, the tax charged, and a description of the supply.

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Next Steps

Canadian GST/HST compliance involves federal and provincial layers, with different registration, filing, and remittance requirements depending on where you and your customers are located. eCommerce and digital businesses face particular complexity due to place of supply rules, the separate QST system, provincial PST obligations, and non-resident digital economy rules.

ECOSIRE's accounting team provides Canadian sales tax compliance support — from initial registration analysis and applications through ongoing return preparation and CRA correspondence. We support businesses operating in all Canadian provinces, non-residents with Canadian GST/HST obligations, and digital economy businesses navigating the non-resident simplified registration system.

Explore ECOSIRE Accounting Services to speak with a Canadian tax compliance specialist and ensure your business is meeting all its GST/HST, QST, and PST obligations correctly.