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What are GST and HST?

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GST/HST -> What are GST and HST?

What are GST and HST?

GST, or goods and services tax, is a sales tax which is charged on most goods and services sold in Canada. In BC, Ontario, Nova Scotia, New Brunswick and Newfoundland and Labrador, the GST has been "harmonized" with the provincial sales tax, to become harmonized sales tax, or HST.

Any business which is registered to collect GST/HST will be able to recover GST/HST paid on purchases made in the course of their commercial activities, by claiming "input tax credits" when filing their GST returns.

Table of sales tax rates in each province

GST/HST rate changes

Both Ontario and BC implemented the HST, effective July 1, 2010. Ontario's HST rate is 13%, while BC's rate is 12%. See Ontario HST and BC HST for more information.

Nova Scotia increased their HST rate to 15%, effective July 1, 2010. Canada Revenue Agency (CRA) has issued the following publications:

	Notice256 HST Rate Increase for Nova Scotia - Questions and Answers on Housing Rebates and Transitional Rules for Housing and Other Real Property Situated in Nova Scotia
	GI-062 Harmonized Sales Tax for Ontario, British Columbia and Nova Scotia - Point-of-Sale Rebate on Feminine Hygiene Products
	GI-063 Harmonized Sales Tax for Ontario, British Columbia and Nova Scotia - Point-of-Sale Rebate on Children's Goods
	GI-087 Harmonized Sales Tax: Stated Price Net of GST/HST New Housing Rebate in Nova Scotia

GST Rate Reduction Effective January 1, 2008

The GST rate is reduced from 6% to 5% effective January 1, 2008. The HST rate was reduced from 14% to 13%.

See the following CRA web pages regarding the rate reduction:

	Notice 226 - GST/HST rate reduction in 2008
	GI-038 - The 2008 GST/HST rate reduction

Effective July 1, 2006 to December 31, 2007

The GST rate was reduced from 7% to 6% effective July 1, 2006. The HST rate was reduced from 15% to 14%.

For further information on the rate reduction, see the CRA web pages:

	Goods and services tax rate reduction
	July 1, 2006 Reduction in the rate of GST/HST - info sheets and questions and answers

Revised: August 28, 2010

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