GST/HST in Canada: rates by province, registration and filing

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GST/HST in Canada is the federal sales tax most businesses charge on goods and services: a 5% Goods and Services Tax across the country, combined with a provincial portion as the Harmonized Sales Tax in some provinces. Other provinces charge their own separate sales tax alongside GST, which adds a second registration. This guide explains the rates by province, when you must register, how to charge and claim tax, filing frequency, and the rules for businesses selling into Canada from abroad.

GST, HST, PST and QST: the basics

Canada has a layered sales tax system:

• GST, the federal Goods and Services Tax, is 5% and applies across Canada.
• HST, the Harmonized Sales Tax, combines GST with a provincial portion in Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador and Prince Edward Island. It is administered by the Canada Revenue Agency (CRA) as one tax.
• PST, provincial sales tax, is a separate tax in British Columbia, Saskatchewan and Manitoba, administered by each province.
• QST, the Quebec Sales Tax, is charged in Quebec alongside GST and administered by Revenu Québec.
• Alberta and the three territories charge only GST.

Rates by province

• Alberta, Northwest Territories, Nunavut, Yukon: 5% GST.
• Ontario: 13% HST.
• Nova Scotia: 14% HST.
• New Brunswick, Newfoundland and Labrador, Prince Edward Island: 15% HST.
• British Columbia and Manitoba: 5% GST plus 7% PST, 12% combined.
• Saskatchewan: 5% GST plus 6% PST, 11% combined.
• Quebec: 5% GST plus 9.975% QST, 14.975% combined.

Use our Canada GST/HST calculator to work out tax for each province. Rates can change, so check the CRA's rate tool before setting prices.

Which rate applies: place of supply

The rate you charge depends on where the supply is made, not where your business is based. For goods, it is usually where the goods are delivered. For services, it depends on rules based on the customer's address and where the service is performed. A business in Alberta selling to a customer in Ontario usually charges 13% HST, not 5% GST. Get this right in your invoicing or e-commerce software by setting tax rules by the customer's province.

PST and QST have their own rules on when they apply to out-of-province sellers, so selling into British Columbia, Saskatchewan, Manitoba or Quebec may require registering for those taxes too.

When you must register: the small supplier rule

Most businesses must register for GST/HST once their worldwide taxable supplies, including those of associated businesses, exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters. Below that, you are a small supplier and registration is optional. Once you exceed the threshold, you must register and start charging tax within the time limits set by the rules.

Some businesses must register regardless of revenue, such as taxi and ride-sharing drivers. Voluntary registration can make sense if your customers are businesses that can claim the tax back, or if you want to claim input tax credits on start-up costs.

Getting a business number and GST/HST account

To register, you need a Business Number (BN) from the CRA and a GST/HST program account, which has an RT suffix. You can register online, by phone or by mail. Quebec businesses register for GST and QST with Revenu Québec. For PST in British Columbia, Saskatchewan or Manitoba, register separately with the province. Include your GST/HST number on invoices to business customers so they can claim input tax credits.

Charging tax and invoicing

Once registered, charge GST/HST on taxable supplies at the correct rate for the place of supply. Invoices must include specific information depending on the amount, such as your business name, GST/HST registration number, the date, a description, the total amount and the tax charged or the rate. Larger invoices require more detail, including the buyer's name.

Some supplies are zero-rated, taxable at 0%, such as basic groceries, prescription drugs and most exports, and some are exempt, such as many health, educational and financial services. You cannot claim input tax credits on costs related to exempt supplies.

Input tax credits

Registered businesses can claim input tax credits (ITCs) for GST/HST paid on purchases used in commercial activities, which reduces the tax they remit. Keep invoices and receipts with the supplier's GST/HST number for claims above set amounts. ITCs do not apply to PST, which is generally a cost to the business, though QST has its own input tax refund system in Quebec.

Claim ITCs in the return for the period in which you paid or owed the tax, or in later periods within the time limit. Keep records for at least six years.

Filing frequency and deadlines

The CRA assigns a filing frequency based on annual taxable supplies:

• Annual filing for revenue of $1.5 million or less, with quarterly instalments if net tax owed exceeds a threshold.
• Quarterly filing for revenue over $1.5 million up to $6 million.
• Monthly filing for revenue over $6 million.

Smaller businesses can choose a more frequent schedule, for example to receive refunds faster. Monthly and quarterly returns are generally due one month after the end of the period. Annual returns are generally due three months after the fiscal year end, with special dates for individuals with business income. Most businesses must file electronically.

The Quick Method

Eligible small businesses with annual taxable supplies of $400,000 or less can use the Quick Method of accounting. Instead of tracking ITCs on most purchases, you remit a set percentage of your tax-included sales, with rates depending on your type of business and province. You can still claim ITCs on capital purchases. The Quick Method saves bookkeeping time and can save tax for businesses with low taxable expenses, such as service businesses. Run the numbers both ways before electing it.

Selling into Canada from abroad

Since July 2021, non-resident businesses selling digital products or services to Canadian consumers, and some platform operators, must register under a simplified GST/HST system once sales to Canadian consumers exceed $30,000 over twelve months. They charge GST/HST but cannot claim input tax credits under the simplified system. Non-residents carrying on business in Canada in other ways may need to register under the normal system.

If you sell software, courses or other digital services to Canadian consumers, check whether you have crossed the threshold. For pricing in Canadian dollars, see our Canada page, which shows global tools with prices converted to CAD. For invoicing practices, see how to invoice international clients.

Software for GST/HST

Accounting and invoicing software should apply province-specific rates, track ITCs, produce GST/HST return figures, and, if you sell into PST provinces or Quebec, handle those taxes separately. Most major accounting tools used in Canada do this. Compare options in the accounting software ranking and invoicing ranking, and see QuickBooks vs FreshBooks and FreshBooks vs Wave.

For online stores, configure tax by province in your platform; see the e-commerce platforms ranking.

No national e-invoicing mandate

Unlike many countries, Canada has no national e-invoicing mandate. Businesses can invoice in any format that shows the required GST/HST details. This makes compliance simpler than in countries with clearance systems, but it puts more emphasis on keeping good records. Digital invoices from your accounting software, with consistent numbering and backups, are the practical standard.

Payroll and other obligations

GST/HST is separate from payroll. If you have employees in Canada, you will also need a payroll account with the CRA for source deductions such as income tax, Canada Pension Plan and Employment Insurance, with Quebec having its own system. If you hire in Canada from abroad without an entity, an employer of record can help; see what an employer of record is.

Common mistakes

• Charging the rate of your own province instead of the customer's.
• Missing the $30,000 threshold and registering late.
• Forgetting PST or QST registration when selling into those provinces.
• Claiming ITCs without proper receipts.
• Charging GST/HST on zero-rated exports.
• Non-resident digital sellers not registering under the simplified system.

Example: a consultant in Alberta with clients across Canada

A consultant based in Calgary has crossed the $30,000 threshold and registered for GST/HST. A client in Alberta pays 5% GST. A client in Toronto pays 13% HST, because the place of supply is Ontario. A client in Vancouver pays 5% GST; whether BC PST also applies depends on the type of service, since many professional services are not subject to PST, while software and some other services can be. A client in the United States pays no GST/HST, because exports of most services to non-residents are zero-rated.

The consultant's accounting software applies the right rate based on each client's address, and the annual GST/HST return totals tax collected by rate and the input tax credits on business costs such as software and equipment. Because the consultant has few taxable expenses, they compare the Quick Method with regular accounting each year.

Example: an online store shipping nationwide

An online store in Ontario ships products across Canada. It charges HST at 13% to Ontario customers, 15% to customers in the Atlantic HST provinces, 5% GST to Alberta and the territories, and GST plus the provincial portion where it is registered for PST or QST. Once its sales into British Columbia passed BC's registration threshold for out-of-province sellers, it registered for BC PST and started charging 7% PST on taxable goods shipped there.

The store configured tax rules by province in its e-commerce platform, and its accounting software keeps separate liability accounts for GST/HST, each PST and QST. That separation makes filing each return straightforward. See Shopify vs Wix for platforms that handle provincial tax rules.

Instalments and payment

Annual filers whose net tax for the year exceeds a threshold must pay quarterly instalments during the year, based on the previous or current year's net tax. Missing instalments leads to interest. Monthly and quarterly filers pay with each return. You can pay through online banking, the CRA's My Business Account, or other methods. Set aside the GST/HST you collect in a separate account so it is ready when due; it is the government's money held in trust.

Records to keep

Keep sales invoices, purchase receipts supporting input tax credits, import documents, export evidence, and copies of returns for at least six years after the end of the year they relate to. Records can be electronic, as long as they are readable and complete. Good records are the best defence in a CRA review, and they make claiming every input tax credit easier.

Changing provinces and rates

Provincial rates change occasionally, as when a province adjusts its HST or PST. When a rate changes, transitional rules decide which rate applies to invoices and payments around the change date. Update your software on the effective date, review open invoices and subscriptions that span the change, and check how deposits and progress payments are treated. Your accountant or the CRA's guidance on the specific change will explain the transitional rules.

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