How it works
The GST is a 5% federal tax on most goods and services sold in Canada. Five provinces combine it with their provincial tax into a single harmonized sales tax, the HST: Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island.
A registered business charges GST/HST on its sales and pays it on its purchases. On each return it claims back the tax it paid on business purchases, called input tax credits, and sends the CRA the difference.
When you have to register
You have to register once your taxable sales go over $30,000 in a single calendar quarter or over the last four quarters together. Below that you are a small supplier and registering is optional. Registering early lets you claim input tax credits from the start.
Taxi and ride-sharing drivers have to register from their first fare, whatever their sales. How to register is in registering a business with the CRA.
Rates by province
The rate depends on where the customer is, generally, not where your business is. An Ontario business selling to a customer in Nova Scotia charges 14%.
| Province or territory | Rate |
|---|---|
| Alberta | 5% GST |
| British Columbia | 5% GST, plus 7% PST |
| Manitoba | 5% GST, plus 7% RST |
| New Brunswick | 15% HST |
| Newfoundland and Labrador | 15% HST |
| Northwest Territories | 5% GST |
| Nova Scotia | 14% HST |
| Nunavut | 5% GST |
| Ontario | 13% HST |
| Prince Edward Island | 15% HST |
| Quebec | 5% GST, plus 9.975% QST |
| Saskatchewan | 5% GST, plus 6% PST |
| Yukon | 5% GST |
Rates as of April 1, 2025, when Nova Scotia’s HST went from 15% to 14%. Provincial sales taxes in British Columbia, Manitoba, Quebec and Saskatchewan are separate and run by the province.
Taxable, zero-rated and exempt
- Taxable. Most goods and services. You charge GST/HST and claim input tax credits.
- Zero-rated. Taxable at 0%: basic groceries, prescription drugs, many medical devices, most exports, and most farm and fishing products. You charge nothing but can still claim input tax credits.
- Exempt. No tax and no input tax credits: used housing, long-term residential rent, most health and dental services, child care, many educational services and most financial services. A business that sells only exempt supplies cannot register.
Filing and paying
The CRA sets your reporting period from your annual taxable sales:
| Annual taxable sales | Reporting period |
|---|---|
| $1.5 million or less | Annual, or monthly or quarterly if you choose |
| Over $1.5 million, up to $6 million | Quarterly, or monthly if you choose |
| Over $6 million | Monthly |
| Filer | Return and payment due |
|---|---|
| Monthly or quarterly | One month after the period ends |
| Annual | Three months after the fiscal year-end |
| Sole proprietor with a December 31 year-end, filing annually | Return by June 15, payment by April 30 |
File a return for every period, even if you had no sales. Returns now have to be filed electronically. Small businesses with sales up to $400,000 may be able to use the Quick Method, which works out the tax as a flat share of sales.