The harmonized sales tax (HST) applies in the following provinces (the "participating provinces"):
GST and HST rules are basically the same. The HST rate is 14%, of which 6% is the federal component and 8% is the provincial component. Businesses registered for the GST are automatically registered for the HST, and must collect and remit the 14% HST on the taxable supplies (excluding zero-rated supplies) they make in participating provinces.
Supplies include
A special rule applies to the sale of road vehicles. Where a road vehicle sold by a GST registrant in a non-participating province (such as Québec) is subsequently taken into a participating province, and the GST has been paid on the vehicle, the purchaser is required to pay the provincial component of the HST (8%) when the vehicle is registered in the participating province.
However, where the road vehicle is acquired in a non-participating province from a person not registered for the GST, and is subsequently taken into a participating province, the purchaser is required to pay a 14% provincial levy upon registration of the vehicle (and will not be entitled to an input tax credit).
Please contact the Revenu Québec office in your area to find out about the rules pertaining to other supplies of goods and services made in a participating province, such as the supply of:
For further information with regard to the HST, refer to guide IN-203-V, General Information Concerning the QST and the GST/HST.