GST/HST

The Goods and Services Tax (GST) is a tax that applies at a rate of 5% to the supply of most goods and services in Canada. Three provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador) harmonized their provincial sales tax with the GST to create the harmonized sales tax (HST). The HST applies to the same goods and services as the GST, but at a rate of 13%. Of this, 5% is the federal part and 8% is the provincial part.

Although the consumer ultimately pays the GST/HST, generally businesses are responsible for collecting and remitting it to the government. Businesses that must register or that register voluntarily for the GST/HST are called registrants.

Registrants collect the GST/HST on most of their supplies, and pay the GST/HST on most purchases they make to operate the business. Registrants can claim a credit, called an input tax credit (ITC), to recover the GST/HST they paid or owe on the purchases they will use in their commercial activities. When they complete their GST/HST return, they deduct the amount of the credit from the GST/HST they collected. If they pay more than they collect, they can claim a refund.

Eligibility Criteria

Who registers for the GST/HST?

You have to register for the GST/HST if:

• you provide taxable goods and services in Canada; 
• you are not a small supplier.

Small supplier

You are a small supplier if you meet one of the following conditions:

• if you are a sole proprietor, your total taxable revenues (before expenses) from all your businesses are $30 000 or less in four consecutive calendar quarters and in a single calendar quarter; 
• if you are a partnership or a corporation, the total taxable revenues of the partnership or corporation are $30 000 or less in four consecutive calendar quarters and in a single calendar quarter; 
• if you are a public service body (charity, non-profit organization, municipality, university, public college, school authority, or hospital authority), the total taxable revenues from all the activities of your organization are $50 000 or less in four consecutive calendar quarters and in a single calendar quarter. A gross revenue threshold also applies to charities and public institutions.

Exception
Taxi and limousine operators, for their taxi operations, and non-resident performers selling admissions to seminars and other events must register for the GST/HST, even if they are small suppliers.

Summary

How to register for the GST/HST

If you have to register, or if you are a small supplier and want to register, you can do so via Business Registration Online, telephone, fax or mail.

Remember that if your business is in Quebec, you should contact Revenu Québec at 1-800-567-4692.

How to collect GST/HST on the taxable goods and services you provide

If you make taxable supplies (other than zero rated) to customers in Nova Scotia, New Brunswick, or Newfoundland and Labrador, including supplies shipped or mailed to recipients in these provinces, you are required to collect and remit the 13% HST.

Provincial sales tax

When you have to charge both GST and the provincial sales tax (PST), calculate GST on the price before you calculate the PST. For more information on how to calculate PST, contact your provincial tax office. You'll find the phone numbers of the provincial tax offices in the government section of your telephone book.

Provincial GST/HST/PST Rates

Province	GST/HST Rate (%)	PST Rate (%)	Combined Rate (%)
Alberta	5	not applicable	5
British Columbia	5	7	12
Manitoba	5	7	12
New Brunswick	13	not applicable	13
Newfoundland & Labrador	13	not applicable	13
Northwest Territories	5	not applicable	5
Nova Scotia	13	not applicable	13
Nunavut	5	not applicable	5
Ontario	5	8	13
Prince Edward Island	5	10 *	15.5 *
Quebec	5	7.5 *	12.875 *
Saskatchewan	5	5	10
Yukon Territory	5	not applicable	5

* In Quebec and Prince Edward Island only, the GST is included in the provincial sales tax base. You are also charged PST on GST, hence the higher than expected combined rate.

Informing your customers

As a GST/HST registrant, you must show your customers the total tax payable or let them know that the amount payable includes the tax. You can show this to your customers on the invoice, receipt, or contract, or by displaying acceptable signs. If you show the tax on your invoice, receipt, or contract, you must show the total tax or the total of the tax rate, that is, 5% or 13%.

How to calculate the GST/HST you owe and file your return

For each reporting period, you calculate:

• the GST/HST collected or collectible on your taxable supplies during the reporting period; and
• the GST/HST paid or payable on your purchases for which you can claim an input tax credit.

The difference between these two amounts, plus or minus any adjustments, is your GST/HST payment or your refund. If you charge more GST/HST than you paid or owe, you pay CRA the difference. Make cheques payable to the Receiver General. If you paid or owe more GST/HST than you charged, you can claim a refund.

Eligible registrants can file their GST/HST returns over the Internet using GST/HST NETFILE or by phone using GST/HST TELEFILE or through GST/HST EDI filing and remitting. Electronic data interchange (EDI) is a computer-to-computer exchange of information in a standard format. Eligible businesses can use EDI to file their GST/HST returns and remit their GST/HST payments electronically at their financial institution.

New Brunswick Contact(s):
See National Contact.

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National Contact(s):
Canada Revenue Agency
Toll-free (information): 1-800-959-5525 (Business Enquiries and Registrations)
Toll-free (publications): 1-800-959-2221 (Forms and Publications)
Web site: http://www.cra.gc.ca/menu-e.html