- HST and GST are Canadian sales taxes with different rates and responsibilities.
- GST is a federal tax, while HST is a combined federal and provincial tax.
- HST applies in Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.
- Other provinces have separate PST, which businesses must collect and remit separately.
- Quebec has its own sales tax, QST, administered by Revenu Québec.
- The applicable sales tax rate depends on the type of supply, location of the transaction, and exemptions.
- For goods, tax is based on the delivery location.
- For services, tax is based on where the service is performed and where the benefit is received.
- Digital products and services sold to Canadian consumers by non-resident vendors are subject to GST/HST if sales exceed $30,000 annually.
- Certain industries have unique tax rules, such as passenger transportation and real estate.
- Businesses must register for GST/HST if taxable sales exceed $30,000 in a 12-month period.
- Voluntary registration is available for businesses below this threshold.
Source: accountinginsights.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
