What is GST/HST?

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• Who pays GST/HST?

GST is a tax that applies on most taxable supplies made in Canada. The three participating provinces
(Nova Scotia, New Brunswick, and Newfoundland and Labrador) harmonized their provincial sales tax with GST to create the harmonized sales tax (HST). HST applies to the same base of goods and services as GST.

Proposed changes to the GST/HST rates came into effect July 1, 2006. This proposed change of law was current at the time of printing. Before July 2006, GST was 7% and HST was 15% (7% federal part and 8% provincial part). On or after July 1, 2006, GST is 6% and HST is 14% (6% federal part and 8% provincial part).

GST/HST registrants who make taxable supplies (other than zero-rated supplies) in the three participating provinces collect tax at the HST rate. They collect tax at the GST rate on taxable supplies of goods and services they make in the rest of Canada (other than zero-rated supplies). For more information on HST, see our guide RC4022, General Information for GST/HST Registrants.

Who pays GST/HST?

Almost everyone has to pay GST, or HST, on taxable supplies of goods and services (other than zero-rated supplies) made by a GST/HST registrant.

Generally the only groups or organizations that do not always pay GST/HST on their purchases are provincial and territorial governments, Indians, and Indian bands. Call us for more information about collecting tax from these groups or organizations.

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