How to Charge Sales Tax for Different Provinces in Canada

Are you a business that does business with other provinces in Canada?

A client brought it to my attention that they were uncertain what they should be charging for sales tax. The bottom line is that sales tax is charged for the province in which the business is being conducted.

An example… If your main business practice is in NS, you charge the HST @ 15% unless it’s exempt. However, say you were doing a workshop or sold some inventory to someone in Ontario. You would charge Ontario tax @ 13%.

Now, let’s say you did the same thing, except this time it’s in Saskatchewan or Quebec. They have both GST and PST/QST as their tax. It’s our responsibility to charge just the GST, but not their PST. If you happen to be selling to a province that has GST and PST, and you do this frequently, call the Saskatchewan or Quebec Government to apply to a Provincial Sales Tax number. You can typically apply online. They will explain to you the criteria for this application and if it’s even necessary.

Here is a great link for calculating sales tax per province. Remember, not everyone has GST/HST at 15%!