PST GST HST rates across Canada

PST GST HST Rates By Province
Current and Historical Sales Tax Rates

by L. Kenway BComm CPB


This table of the GST HST rates by province since it began on January 1, 1991 is an excellent reference for bookkeepers doing backwork. It is especially helpful when doing 2010 bookkeeping as the sales tax rates and rules were in transition across Canada. New place of supply rules came into effect on July 1, 2010.

I've also included a table summarizing the current GST HST PST rates by province and territory.


Summary of Canadian Sales Tax Rates
by Province

PST GST HST rates on or after July 1, 2016

Province

GST/HST
Rate (%)
PST/QST Rate (%)

Combined
Rate(%)
Alberta 5not applicable5
British Columbia (3) 5712
Manitoba 58 current
7 before July, 2013
13
12
New Brunswick 13
15 April 1
not applicable13
15 April 1
Newfoundland & Labrador (6) 13
15 July 1
not applicable13
15 July 1
Northwest Territories 5not applicable5
Nova Scotia (5) 15 currentnot applicable15 current
Nunavut Territory 5not applicable5
Ontario 13not applicable13
Prince Edward Island (1) & (2) 15 Oct 2016
14 current
5 before Apr 2013

0 current
10 before Apr 2013
15 Oct 2016
14
15.5 before Apr 2013
Quebec (1) & (4) 5 9.975 Jan 2013
9.5 Jan 2012
8.5 Jan 2011
7.5 July 2010
14.975 Jan 2013
14.975 Jan 2012
13.925 Jan 2011
12.875 Jul 2010
Saskatchewan 5510
Yukon Territory 5not applicable5

Footnotes:

  1. In Quebec (until December 31, 2012) and Prince Edward Island (until March 31, 2013) only, the GST was included in the provincial sales base. PST was charged on GST explaining the higher than expected combined rate.
  2. PEI implements HST on April 1, 2013. They raise the rate on October 1, 2016.
  3. BC re-implements PST + GST on April 1, 2013 after 2011 referendum.
  4. QST harmonized with GST on January 1, 2013 but is not considered HST. Quebec is NOT classified as a participating province. The total tax did not change as the new rate now consists of 9.975% = 9.5% x 1.05%. The QST now applies BEFORE GST. PST is no longer charged on GST. Financial services are also exempt instead of zero rated.
  5. Nova Scotia announced in 2012 an intention to reduce the HST in 2014 to 14% and again in 2015 to 13%. However in February 2014, the Nova Scotia Finance Department announced it cannot afford to lose the revenue and will not be proceeding with the previous government's HST rate reductions.
  6. Newfoundland and Labrador’s 2016 budget reintroduces the 15% Retail Sales Tax (RST) on insurance premiums for property and casualty insurance policies. The RST had been imposed on these premiums until January 1, 2008, when it was rescinded. 

Current and Historical GST HST Rates
1991 to present

Period GST HST NL
HST
NB
HST
NS
HST
PEI
HST
BC
HST
QST/GST
Harmonized
Oct 1, 2016 on5%13%15%15%15%15%--9.975%
/5%
Jul 1, 2016 on5%13%15%15%15%14%--9.975%
/5%
Apr 1, 2016 to
Jun 30, 2016
5%13%13%15%15%14%--9.975%
/5%
Apr 1, 2013 to
Dec 31, 2015
5%13%13%13%15%14%--9.975%
/5%
Simplified rates*4.762%11.504%11.504%11.504%13.043%12.281%--?%
Jan 1 2013 to
Mar 31, 2013
5%13%13%13%15%--12%9.975%
/5%
Simplified rates*4.762%11.504%11.504%11.504%13.043%12.281%10.714%?%
Jul 1 2010 to
Dec 31, 2012
5%13%13%13%15%--12%--
Simplified rates*4.762%11.504%11.504%11.504%13.043%--10.714%--
TRANSITIONALRULESBEGANMAY 1,2010
Jan 1 2008 to
June 30 2010
5%13%13%13%13%-- ----
Simplified rates*4.762%11.504%11.504%11.504%11.504%---- --
Jul 1 2006 to
Dec 31 2007
6%14%14%14%14%---- --
Simplified rates*5.660%12.281%12.281%12.281%12.281%---- --
Apr 1 1997 to
Jun 30 2006
7%15%15%15%15%------
Simplified rates*6.542%13.043%13.043%13.043%13.043%------
Jan 1 1991 to
Mar 31 1997
7%--------------
Simplified rates*6.542%--------------

THE BOOKKEEPER'S NOTES ON

GST HST Rates in Canada

Looking for Tax Compliance Filing Deadlines and Due Dates?


  • GST is the goods and services tax. It has been in effect in Canada since January 1, 1991. Alberta and the three territories utilize GST rates as their only sales tax rate. Quebec administers their GST sales tax while the CRA administers the GST and HST for the rest of Canada.
  • HST is the harmonized sales tax. It has two parts ... the federal GST part and the provincial part. HST rates are currently in effect in Newfoundland, Labrador, New Brunswick, Nova Scotia, PEI and Ontario. 

  • PST is a provincial sales tax and may also be referred to as a retail sales tax (RST). PST rates are currently in effect in British Columbia, Saskatchewan and Manitoba. See the  notes below on Quebec. The above table excludes PST but the tables below include PST.

  • HST transitional rules for BC and Ontario were released by CRA, BC Ministry of Finance and the Ontario Ministry of Revenue. The HST transitional rules were effective May 1, 2010 to June 30, 2010.

  • In July, 2009, the Campbell government announced that BC would switch to HST effective July 1, 2010 ... and they did. However, it was short lived. Due to the results of a province wide referendum held in 2011, BC transitioned back to GST + PST from HST on April 1, 2013 .

  • Quebec harmonized their sales tax effective January 1, 2013. However, unlike other provinces, QST remains a separate provincial tax. Reference - The Excise and GST/HST News 87 explained Quebec will NOT be considered a participating province for GST/HST purposes.

  • PEI was the last province to switch to HST.  The HST rate at 14% effective April 1, 2013. PEI announced they would raise the rate to 15% effective October 1, 2016.

  • New Brunswick announced in their 2016 budget that HST would increase on April 1, 2015 to 15% from 13%.

  • Newfoundland Labrador had proposed to increase the HST to 15% on January 1, 2016. This proposal was cancelled on December 14, 2015.

  • If you are registered for GST, then you are automatically registered for HST.


How To Calculate The Provincial Part of HST

HST rate % - Federal Part % = Provincial Part %

For example in Ontario since July 1, 2010:

HST rate 13% - Federal Part 5% = Provincial Part 8%


The CRA publishes the current and historical GST HST rates on their website at Businesses> GST/HST > GST/HST rates.


*How To Calculate The Simplified GST HST Rates

The simplified GST/HST rate for purchases is calculated as follows:

  • Current GST/HST rate / (100 + Current GST/HST rate) = Simplified rate.

  • For GST @ 5%, the simplified tax rate would be 5/105 times total purchase amount including GST = GST paid (ITC).
    For example - 5/105 times $2456.89 including GST = $116.99 GST paid

  • For HST @ 13%, the simplified tax rate would be 13/113 times total purchase amount including HST = HST paid (ITC).
    For example - 13/113 times $2456.89 including HST = $282.65 GST paid


It is my understanding that if you use the simplified method, you should have been self assessing HST between October 14, 2009 and April 30, 2010 ... holding and remitting after the June 30, 2010 reporting period.


When does it become mandatory to register for GST/HST?

If you own a business in Canada, you must register for GST and collect it if your annual sales is greater than $30,000.

Registration under $30,000 in sales is optional. If you are starting up your business and your sales will be less than $30,000, you should still register. It allows you to recover your input tax credits (ITCs) on start-up costs and normal purchases.


THE BOOKKEEPER'S NOTES ON

Sales Tax Rates Across Canada

PST GST HST rates on July 1, 2010


PST GST HST rates before July 1, 2010

Source: You used to be able to find the above list at the Canada Business website. The rates were located in the Canada-Saskatchewan GST/HST service section ... about mid-way down the page. The site has since been revised and I can no longer locate the table.

What I really liked about the table was that it included the effective combined rates for PEI (prior to April 2013) and Quebec (prior to January 2013) as they charged PST on GST.


Quick Method GST/HST Rates

With the introduction of different HST rates in BC and Nova Scotia on July 1, 2010, this simplified method of accounting may require a bit more paperwork than before ... depending on your customer base.

You now need to track your sales by the four groups:

  • non-participating provinces
  • participating provinces by rate - BC, Nova Scotia
  • all the other participating provinces; and by
  • non-eligible sales and personal use "sales".

As this topic is a bit more complex now, the GST HST Quick Method rates are now are their own page.




It's been great chatting with you about your books today!


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