Sales taxes in Canada
From Wikipedia, the free encyclopedia
In Canada there are three types of sales taxes: provincial sales taxes or PST, the federal Goods and Services Tax or GST, and the Harmonized Sales Tax or HST.
Every province except Alberta implements a Provincial Sales Tax or the Harmonized Sales Tax. The Yukon Territory, Northwest Territories and Nunavut do not have any type of regional sales tax.
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[edit] Harmonized Sales Tax
- Main Article: Harmonized Sales Tax
In Canada, the Harmonized Sales Tax (HST) combines the Goods and Services Tax (GST) and certain Provincial Sales Taxes (PST) into a single, blended, sales tax. Currently, there is a 14% HST in the provinces of New Brunswick, Newfoundland, and Nova Scotia. The HST is collected by the Canada Revenue Agency, which then remits the appropriate amounts to the participating provinces.
[edit] Provincial Sales Taxes
Separate Provincial Sales Taxes (PST) are collected in the provinces of British Columbia, Saskatchewan, Manitoba, Ontario, Quebec, and Prince Edward Island. Which items the tax is applied to varies widely by province.
The amount of this tax varies from province to province
| Province | rate (%) | combined fed./prov. rate (%) | note |
|---|---|---|---|
| British Columbia | 7.0 | 13.0 |
|
| Saskatchewan | 5.0 | 11.3 |
|
| Manitoba | 7.0 | 13.0 | |
| Ontario | 8.0 | 14.0 | |
| Quebec | 7.5 | 13.95 |
|
| Prince Edward Island | 10 | 16.6 |
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[edit] Quebec Sales Tax
The provincial sales tax in Quebec is called the Quebec Sales Tax, or QST (French: taxe de vente du Québec, or TVQ). The current rate of 7.5% is applied after the GST.
Example:
| Selling price | $100.00 |
| GST ($100 * 6%) | $6.00 |
| QST ([$100 + $6] * 7.5%) | $7.95 |
| Total | $113.95 |
The sales tax in the province of Quebec is therefore (1.06 * 1.075) - 1 = 1.1395 - 1 = 13.95%.
