Quick overview
Canada uses multiple types of sales taxes depending on the province. Understanding the difference between GST, HST, PST, and QST helps you invoice correctly and stay compliant.
The 4 main tax types
GST (Goods and Services Tax)
- Federal tax
- Rate: 5%
- Applies across Canada
👉 Used on its own in some provinces.
HST (Harmonized Sales Tax)
- Combined tax (GST + provincial portion)
- Single rate applied
Examples:
- Ontario — 13%
- Nova Scotia — 15%
👉 Simplifies tax into one line.
PST (Provincial Sales Tax)
- Provincial tax
- Applied separately from GST
Used in:
- British Columbia
- Manitoba
- Saskatchewan
👉 Appears as a separate line on invoices.
QST (Quebec Sales Tax)
- Quebec’s provincial tax
- Applied alongside GST
👉 Has its own rules and structure.
How taxes differ by province
HST provinces
- Single combined tax
GST only
- Alberta, territories
GST + PST
- Separate federal and provincial taxes
GST + QST
- Quebec-specific system
Why this matters
Using the wrong tax setup can:
- Lead to incorrect invoices
- Cause compliance issues
- Create confusion for your clients
How Maplr helps
Maplr automatically handles this for you:
- Applies the correct tax type based on province
- Calculates totals accurately
- Separates taxes where required
- Keeps your records organized
👉 No manual calculations needed.
Key takeaway
- Canada does not have one single tax system
- Tax type depends on the province
- Maplr handles GST, HST, PST, and QST automatically
What’s next?
- 👉 Learn how Maplr calculates taxes
- 👉 Learn how tax reports work
- 👉 Learn when to charge tax