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Sales taxes in Canada

In Canada, there are two types of sales taxes levied. These are :

Every province except Alberta has implemented either a provincial sales tax or the Harmonized Sales Tax. The federal GST rate is 5 percent, effective January 1, 2008.

The territories of Yukon, Northwest Territories, and Nunavut have no territorial sales taxes, so only the GST is collected. The three northern jurisdictions are partially subsidized by the federal government, and their residents receive some additional tax concessions due to the high cost of living in the north.

Provincial sales taxes

Separate provincial sales taxes (PST) are collected in the provinces of British Columbia, Saskatchewan, Manitoba (retail sales tax or RST) and Quebec (Quebec sales tax or QST, French: Taxe de vente du Québec or TVQ). Prince Edward Island switched to a HST on April 1, 2013, the same date that British Columbia reverted to a separate GST/PST after their adoption of a HST in 2010 was rejected in a referendum.[1] Goods to which the tax is applied vary by province, as does the rate. In all provinces where the provincial sales tax is collected, the tax is imposed on the sale price without GST (in the past, in Quebec and in Prince Edward Island, PST was applied to the combined sum of sale price and GST). Of the provincial sales taxes, only the QST (and the HST) are value-added; the rest are cascading taxes.

New housing rebate

Sales taxes on new or significantly renovated housing used as a primary residence may be eligible to have a portion of charged federal and provincial sales taxes rebated. New homes valued up to $450,000 may be eligible for a 36% rebate on GST charged up to a maximum of $6,300.[17] Provincial sales tax rebate programs on new housing are offered in Ontario, British Columbia, Nova Scotia, Saskatchewan, and Quebec (for QST). Terms and conditions vary by province.

References

  1. ^ a b c "P.E.I. budget announces increase in HST". CBC News. April 19, 2016. Retrieved May 1, 2016.
  2. ^ "Retail Sales Tax". Manitoba Finance. Manitoba Ministry of Finance. 2013. Retrieved July 3, 2013.
  3. ^ Siragusa, Austin. "Manitoba provincial sales tax rate drops to 7% on Canada Day". Global News. Retrieved July 8, 2019.
  4. ^ Froese, Ian. "Pallister Government to cut PST by 1 percentage point using revenues from its own carbon tax". CBC Manitoba. Retrieved March 5, 2020.
  5. ^ "Information Bulletin 120" (PDF). Retrieved September 17, 2020.
  6. ^ "Harmonized Sales Tax (HST) - Finance". February 11, 2013.
  7. ^ "Harmonized Sales Tax". July 22, 2019.
  8. ^ "HST hike highlights N.S. budget". CBC News. April 6, 2010. Retrieved April 6, 2010.
  9. ^ "Nova Scotia books in no shape for legislated cut to HST: finance minister | News957". www.news957.com. Archived from the original on February 1, 2014.
  10. ^ Public Treasury, Prince Edward Island Department of (January 7, 2008). "Tax and Land Information Website: Revenue Tax (PST)". Retrieved September 26, 2009.
  11. ^ As of January 1, 2013, Quebec officially changed the QST rate to 9.975. Previously, it had a nominal rate of 9.5 (Quebec raised the QST from 7.5 to 8.5 on Jan 1 2011, and then from 8.5 to 9.5 on Jan 1 2012), but the QST was applied to the combined sum of sale price and GST, making the effective QST rate 9.975. As of January 1, 2013, the rate no longer applies to the combined sum of sale price and GST, and is simply 9.975.
  12. ^ "QST and GST/HST". Revenu Quebec. Retrieved January 3, 2013.
  13. ^ "Revenu Québec - Calculating and Collecting the Tax on Lodging".
  14. ^ "Revenu Québec - Establishments Subject to the Tax on Lodging".
  15. ^ "IN 2017-01 PST Transitional Rules" (PDF). SK PST. Retrieved March 24, 2017.
  16. ^ "Restaurants, Caterers and Other Businesses Selling Prepared Food and Beverage" (PDF). Saskatchewan Ministry of Finance. March 22, 2017. Retrieved March 23, 2017.
  17. ^ Agency, Canada Revenue (June 22, 2017). "GST/HST New Housing Rebate". aem. Retrieved June 30, 2020.

Further reading

External links