The new sales tax landscape could affect many business systems and processes. Companies should review their sales and purchases systems together with their procedures and policies for numerous issues, including returned or exchanged goods, loyalty programs, employee expense accounts, and new GST/HST rules for employee pension plans. For many businesses, it will be important to identify the place of supply of their sales and determine whether to collect HST, GST, or GST and PST/QST and, if so, at what rate. With the different HST rates, some businesses will also have to determine whether they are required to self-assess additional amounts of tax or whether they are entitled to rebates where goods and services are purchased from one province for use in another province or imported into Canada.
To learn more, visit the Canada Revenue Agency website.
SALES TAX LANDCAPE
GST/HST/PST Rates By Province
(Effective July 1, 2010) |
|
GST or
HST Rate |
PST
Rate |
Combined Rate |
Alberta |
5% |
Not applicable |
5% |
British Columbia |
12% |
Not applicable |
12% |
Manitoba |
5% |
7% |
12% |
New Brunswick |
13% |
Not applicable |
13% |
Newfoundland / Labrador |
13% |
Not applicable |
13% |
North West Territories |
5% |
Not applicable |
5% |
Nova Scotia |
5% |
10% |
15% |
Nunavut |
5% |
Not applicable |
5% |
Ontario |
13% |
Not applicable |
13% |
Prince Edward Island |
5% |
10% |
15.5% |
Quebec |
5% |
7.5%
8.5% (Jan 2011) |
12.875%
13.925 (Jan 2011) |
Saskatchewan |
5% |
5% |
10% |
Yukon |
5% |
Not applicable |
5% |
- In Quebec and PEI only the GST is included in the provincial sales base. You are also charged PST on GST, therefore the higher than expected combined rate
NOTE: The information provided here is of general nature and correct at the time of posting. SOHO does not guarantee the information is correct at the time you received it or that it will be correct in the future. We encourage you to seek professional advice to address your specific business or individual needs.
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