Sales taxes in Canada
Lua error in package.lua at line 80: module 'strict' not found. In Canada, three types of sales taxes are levied. These are as follows:
- Provincial sales taxes (PST), levied by the provinces
- Goods and Services Tax (GST), a value-added tax levied by the federal government
- The combined Harmonized Sales Tax (HST), also a value-added tax, a single, blended combination of the PST and GST which is used in Ontario, (formerly) British Columbia, and the Atlantic provinces; New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The HST is collected by the Canada Revenue Agency, which then remits the appropriate amounts to the participating provinces.
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 neither the HST nor territorial sales taxes. Only the GST is collected. The three northern jurisdictions are heavily subsidized by the federal government, and its residents receive some additional tax concessions due to the high cost of living in the north.[1]
Provincial sales taxes
Separate Provincial Sales Taxes (PST) are collected in the provinces of British Columbia, Saskatchewan, Manitoba 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.[2] Goods to which the tax is applied vary by province, as does the rate. Moreover, for those provinces whose provincial sales tax is applied to the combined cost and GST, provincial revenues decline or increase with respective changes in the GST. Of the provincial sales taxes, only the QST (and the HST) are value-added; the rest are cascading taxes.
| Province | Type | Prov. rate (%) | Total Tax Rate (%) | Notes |
|---|---|---|---|---|
| Alberta | GST | 0 | 5 | There is a 4% tax on lodging and 4% tax on hotel room fees. |
| British Columbia | GST + PST | 7 | 12 | <templatestyles src="Module:Hatnote/styles.css"></templatestyles> Reverted to a separate GST/PST on April 1, 2013, with a PST of 7%, after their adoption of a HST in 2010 was rejected in a referendum.[2] |
| Manitoba | GST + PST | 8 | 13[3] | There is a 5% tax on lodging and 5% tax on hotel room fees. |
| New Brunswick | HST | 8 | 13 | |
| Newfoundland and Labrador | HST | 8 | 13 | The Newfoundland and Labrador sales tax is 13%. A planned increase to 15% in 2016[4] was cancelled in December 2015.[5] |
| Northwest Territories | GST | 0 | 5 | |
| Nova Scotia | HST | 10 | 15[6] | Rates were meant to be reduced to 14 and 13% on July 1, 2014 and July 1, 2015 respectively. However, the government has stated that the province cannot afford reductions.[7] |
| Nunavut | GST | 0 | 5 | |
| Ontario | HST | 8 | 13 | Restaurant meals (whether dine-in or take-out, and including fast food) under $4 are exempt from the Ontario portion.[8][9] Alcoholic beverages purchased from licensed restaurants are also subject to an Ontario rate of 13%.[9] |
| Prince Edward Island | HST | 9 | 14[10] | Provincial rate was decreased from 10% when PEI switched to a HST on April 1, 2013.[2] |
| Quebec | GST + QST | 9.975[11] | 14.975[12] | Books are taxed at 5.0% (considered essential goods for QST but not for GST). There is an additional tax on tourist lodgings such as hotels which varies by region, ranging from $2 per night to 3.5%.[13][14] |
| Saskatchewan | GST + PST | 5 | 10[15] | There is a separate 10% liquor consumption tax. The non-alcoholic portion of a restaurant meal is not taxed. PST is not applicable for any exempt business in Lloydminster. |
| Yukon | GST | 0 | 5 |
 |
References
- ↑ Taxtips.ca
- ↑ 2.0 2.1 2.2 Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ http://www.theglobeandmail.com/news/national/newfoundland-hiking-taxes-as-budget-forecasts-11-billion-deficit/article24187321/
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ http://www.news957.com/2013/12/17/nova-scotia-books-in-no-shape-for-legislated-cut-to-hst-finance-minister/
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ 9.0 9.1 Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ As of January 2013, Quebec officially changed the QST rate to 9.975. Previously, it had a nominal rate of 9.5 but was applied on top of the GST, making the effective rate 9.975. As of January 2013, the rate no longer applies on top of GST and is simply 9.975.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
Further reading
- Bird, R. M. (2012). The GST/HST: Creating an Integrated Sales Tax in a Federal Country. Rotman School of Management Working Paper, (2115620).
