What GST means

GST stands for Goods and Services Tax. It applies to most taxable goods and services sold in Canada, and the current federal rate is 5%. Businesses that are registered for GST/HST usually collect this tax from customers and remit it to the Canada Revenue Agency.

What HST means

HST stands for Harmonized Sales Tax. It is used in participating provinces and combines the federal GST with the provincial sales tax into a single charge, which makes tax collection simpler for businesses and customers. The total HST rate varies by province, such as 13% in Ontario and 15% in several Atlantic provinces.

How it works

When a customer buys a taxable product or service, the business adds GST or HST at checkout depending on the province and place of supply. Businesses can generally claim input tax credits on GST/HST they paid for eligible business purchases, which helps reduce the amount they owe on their tax return.

Important tax rules

Not all goods and services are taxed the same way. Some are zero-rated, meaning the tax rate is 0%, while others are exempt, meaning no GST/HST is charged and input tax credits are usually not available. Basic groceries, prescription drugs, certain medical devices, and exports are common examples of zero-rated supplies.

Why it matters for businesses

If your business earns more than the small supplier threshold, you usually need to register for GST/HST, charge the correct tax, and file returns. The correct rate depends on where the sale takes place, not only where your business is located.

Simple summary

In short, GST is Canada’s federal sales tax, while HST is a combined federal and provincial tax used in select provinces. Both are part of Canada’s sales tax system and are important for pricing, invoicing, and tax compliance.

Pricing Sheet

Important Notes:

• Catch-up / Cleanup: $300 – $600 per month backlog
• Pricing may vary based on business complexity
• Final quote confirmed after review