Canada — Harmonized Services Tax (HST)
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Canada's general VAT rate is 5%, with other rates including 0% that can apply to certain transactions. The Harmonized Services Tax (HST) is administered by the Canada Revenue Agency (http://www.cra-arc.gc.ca) in Ottawa.
In addition to the 5% federal level sales tax (GST), provinces have a Local Province Sales Tax (PST). Combined, these are called the "Harmonized Sales Tax", which ranges from 9.975 to 15% by province.
Canada's consumption tax is called the Goods and Services Tax (GST), which was introduced in January 1991.
Canada's consumption tax is called the Harmonized Services Tax (HST), which was introduced in April 1997.
North American Free Trade Agreement (NAFTA)
Canada Sales tax rates for 2023
- GST standard
- 9.975% (see Sections B and D)
- New Brunswick
- Newfoundland and Labrador
- Nova Scotia
- Prince Edward Island
- Zero-rated and exempt
Canada Business number format
Businesses in Canada that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Canada Revenue Agency, and will follow a certain format. The Business number format is 15 characters (9 numeric/2 alpha/4 numeric).
Canada GST/HST return periods
Businesses in Canada that are required to collect tax from consumers must file regular tax returns with the Canada Revenue Agency in Ottawa. Canada's GST/HST return periods are:
Monthly (turnover in excess of CAD6 million, optional for other registrants)
Quarterly (turnover between CAD1,500,000 to CAD6 million, optional for other registrants)
Annual (turnover below CAD1,500,000)
Canada Harmonized Services Tax (HST) Thresholds
These are the revenue thresholds at which businesses in Canada are required to start collecting and remitting tax.
Recovery of GST or HST by non-established businesses
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Canada are not required to collect taxes from the consumer.
Canada VAT Refunds
Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the Canada VAT refund program, more info can be obtained from the Canada Revenue Agency.
Canada Tax Sources & Citations
- EN: Canada Value Added Tax
- RU: НДС
- CN: 增值税
- Canada Canada Revenue Agency (1)
- Ernst & Young global VAT tax study, Canada (updated 2023)
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