What is GST/HST?

What is GST?

GST (Goods and Services Tax) is a 5% federal tax applied across Canada.

It applies to most goods and services unless they are exempt or zero-rated.

What is HST?

HST (Harmonized Sales Tax) combines:

• The 5% federal GST, and
• A provincial tax portion

These are merged into a single tax rate in certain provinces.

Provinces that use HST

The following provinces use a single combined HST rate:

• Ontario — 13%
• New Brunswick — 15%
• Nova Scotia — 15%
• Prince Edward Island — 15%
• Newfoundland and Labrador — 15%

Provinces with other tax systems

GST only (5%)

• Alberta
• Northwest Territories
• Nunavut
• Yukon

GST + PST (separate taxes)

• British Columbia
• Manitoba
• Saskatchewan

GST + QST

• Quebec (uses QST instead of PST)

Do you need to charge sales tax?

You generally need to register if:

• Your business earns more than $30,000 CAD in revenue over 12 months
• You are not classified as a small supplier

If you are below this threshold, registration is optional — but can still be beneficial.

How Canadian sales taxes work in practice

When registered:

1. You charge the appropriate tax (GST, HST, PST, or QST) on invoices
2. You collect the tax from customers
3. You remit it to the appropriate tax authority
4. You may claim Input Tax Credits (ITCs) to recover GST/HST on expenses

To learn more about eligibility for the ITC, refer to the Government of Canadas article here.

Example (Ontario)

• Service amount: $1,000
• HST (13%): $130
• Total invoice: $1,130

How Maplr helps

Maplr automatically handles Canadian sales tax based on your province:

• Applies GST, HST, PST, or QST correctly
• Separates taxes where required (e.g., GST + PST)
• Tracks tax collected
• Keeps your records organized for filing

Key takeaways

• Canada uses multiple tax systems depending on province
• GST is a 5% federal tax
• HST combines federal + provincial tax into one rate
• Some provinces use separate PST or QST
• Proper tracking is essential for compliance