Understanding Canada's GST/HST System
Unlike the EU's single-rate VAT model, Canada layers a federal Goods and Services Tax (GST, 5%) with province-specific rules. Provinces that harmonize their sales tax with GST use the Harmonized Sales Tax (HST): Ontario at 13%, and the Atlantic provinces β Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island β at 15% (Nova Scotia reduced its HST to 14% effective April 1, 2025; confirm current provincial rate before relying on it for filings). Provinces that charge GST only, plus their own separate provincial sales tax, include Alberta (GST only, no PST), British Columbia (GST 5% + PST 7%), Manitoba (GST 5% + RST 7%), Saskatchewan (GST 5% + PST 6%), and Quebec (GST 5% + QST/TVQ 9.975%, administered by Revenu QuΓ©bec). Because of this patchwork, "Canada VAT" is really a per-province calculation rather than one national rate.