What provinces charge provincial sales tax,
and at what rates?
Provincial sales taxes are charged in
many provinces on retail sales of many goods and services. In all
provinces except Quebec and Prince Edward Island, this tax is charged on the selling price of the item
before GST is applied. GST is charged on the selling price of the item
before PST is applied, thus avoiding GST being charged on PST.
In Quebec and Prince Edward Island, the provincial sales tax is charged
based on the total of the selling price plus GST.
When both GST and provincial sales tax are
applicable to a sale, the amounts of each should be shown
separately on the cash register tape or invoice.
The following are the general rates of provincial sales taxes
for most purchases, and
links to the provincial (or federal) web sites regarding provincial retail sales taxes:
(1) BC announced that it proposes to implement
HST effective July 1, 2010.
(2) The sales tax is applied to the total of the selling price plus the GST.
The 2009 Québec budget proposes an increase to 8.5% effective January 1, 2011.
(3) The GST rate was reduced to 5%, and HST to 13% effective January 1,
2008. They were previously reduced from 7% and 15% to 6% and 14% effective
July 1, 2006.
(4) Saskatchewan PST rate reduced from 7% to 5% for all
sales made on or after October 28, 2006.
(5) Ontario's 2009 budget proposes to
combine the retail sales tax with GST for a single value-added tax, HST, effective
July 1, 2010.
Businesses which sell taxable goods and/or services in each province are
required to register as a vendor to collect the provincial retail sales
tax.
HST: The provinces of Newfoundland and Labrador, Nova Scotia, and New Brunswick
now charge "Harmonized Sales Tax", or HST. Instead of charging
a provincial retail sales tax as well as GST, only the HST is charged, at a
rate of 13%. See the GST/HST page for
more information.
Revised: December 15, 2009
