Canada has a federal government, but each province manages its tax laws. When you book your shipment with us and submit the necessary paperwork to Canada Post or UPS, our system takes care of calculations for duty fees based on what’s required by law in that specific region!
Goods and Services Tax (GST)
The GST has been around since 1991. That year, it replaced the hidden manufacturer’s sales tax of 13.5%.
The GST has applied to most goods and services apart from some essentials such as residential rent, groceries, medical supplies, etc. These items are called tax-exempt.
The GST is a tax that was first introduced in 1991. It replaced the hidden manufacturer’s sales tax of 13 5%, which had been around since 1872! Back then it applied only to certain goods and services such as residential rent or groceries. Make sure your accountant knows what kind before he/she starts inputting those numbers into their routines
The amount applied varies from province to province and it’s dependent solely on the delivery location’s province.
The Exact GST Amounts in Canadian Provinces
- If your shipment is going to New Brunswick (NB), Newfoundland and Labrador (NL), Nova Scotia, or Prince Edward Island, the amount is 15%.
- If you’re shipping to Ontario, the amount is 13%.
- If you’re shipping within Quebec, the amount is 14.975%.
- If you’re shipping from outside of Quebec into QC then the amount is 5%.
- And anywhere in the rest of Canada, the amount is also 5%.
Provincial Sales Tax (PST)
The provincial tax is, naturally, specific to each province. It is sometimes also known as the RST or the retail sales tax. The amounts are the same as those we’ve just listed above, so you don’t have to worry about checking for additional numbers.
Quebec utilizes its own (almost harmonized with the GST tax) called QST, or the Quebec sales tax.
Harmonized Sales Tax (HST)
HST represents a harmonization or the combination of the provincial and goods and services taxes. Basically, it takes the other two and merges them into one.
The Canadian government wanted to make the HST universal, however, due to some provinces not agreeing to it, it is only applicable in some (five to be exact) provinces such as Prince Edward Island, Newfoundland/Labrador, New Brunswick, Ontario, and Nova Scotia.
All of the provinces above apply HST in the amount of 15% except Ontario where it’s only 13%.
For more information, get in touch with our team of experts at I-Way Transport Inc.