Canadian GST/HST Guide: Everything a Small Business Needs to Know
Understand when to register, how to collect GST/HST/PST across provinces, and how to file with CRA.
Canadian sales tax is trickier than it looks — three different tax types depending on province. Here's the full picture.
The three tax systems
1. GST (Goods and Services Tax): federal, 5%, applies in provinces that don't harmonize
2. HST (Harmonized Sales Tax): federal + provincial combined, 13%-15%, in NB, NL, NS, ON, PE
3. PST (Provincial Sales Tax): provincial-only, separate from GST, in BC, MB, QC, SK
Alberta, Nunavut, NWT, Yukon have no provincial tax — just 5% GST.
Full rate table
| Province | GST | PST/QST | Total |
|---|---|---|---|
| AB, NT, NU, YT | 5% | — | 5% |
| BC | 5% | 7% | 12% |
| MB | 5% | 7% | 12% |
| NB | — | — | 15% HST |
| NL | — | — | 15% HST |
| NS | — | — | 15% HST |
| ON | — | — | 13% HST |
| PE | — | — | 15% HST |
| QC | 5% | 9.975% QST | 14.975% |
| SK | 5% | 6% | 11% |
When must you register?
Mandatory registration if your worldwide taxable revenue exceeds CAD $30,000 in the last 4 quarters. Under $30k you're a "small supplier" and can stay unregistered (but then you can't claim input tax credits either).
Input tax credits (ITC)
This is the magic of the system. When you pay GST/HST on business expenses, you claim it back via ITC. If you collected $1,000 HST and paid $400 HST on expenses, you remit only $600. Every receipt matters.
Filing frequency
Set by CRA based on revenue:
- Under $1.5M/year: annual (with quarterly installments)
- $1.5M - $6M: quarterly
- Over $6M: monthly
Common mistakes
- Registering too late (you still owe on sales before registration if over threshold)
- Charging wrong rate across provinces (Canada is destination-based like the US)
- Missing ITC claims (keep every receipt!)
- Forgetting QC is separate — registered separately with Revenu Québec
- Not tracking place of supply rules (digital services, online sales)
Quebec is special
QC runs its own QST system via Revenu Québec. You need a separate QST registration number and file separate returns. Don't assume CRA covers QC.
How TinSuite automates Canadian tax
- Auto-detects registration requirement based on your revenue
- Applies correct GST/HST/PST rate per province
- Generates GST34 (federal) and QST forms (Quebec) ready to file
- Tracks ITC from your bank transactions automatically
- Reminds you before each filing deadline