The short answer
GST/HST is Canada's federal value-added tax. Businesses registered for GST/HST charge it on most sales, claim back the GST/HST they pay on business purchases as input tax credits (ITCs), and send the difference to the Canada Revenue Agency (CRA) on a monthly, quarterly or annual return. The rate depends on the province: 5% GST in some provinces, and a combined HST of 13% to 15% in others.
GST, HST, PST and QST
- GST (Goods and Services Tax): the 5% federal tax that applies across Canada.
- HST (Harmonized Sales Tax): GST combined with a provincial portion in Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador and Prince Edward Island. One rate, one return to the CRA.
- PST (Provincial Sales Tax): a separate provincial tax in British Columbia, Manitoba and Saskatchewan, filed with the province rather than the CRA.
- QST (Quebec Sales Tax): Quebec's own sales tax, administered by Revenu Québec.
2026 rates by province
| Province / territory | Tax type | GST / HST | Provincial tax | Combined |
|---|---|---|---|---|
| Alberta | GST | 5% | None | 5% |
| British Columbia | GST + PST | 5% | 7% PST | 12% |
| Manitoba | GST + PST | 5% | 7% PST | 12% |
| New Brunswick | HST | 15% | Included | 15% |
| Newfoundland and Labrador | HST | 15% | Included | 15% |
| Northwest Territories | GST | 5% | None | 5% |
| Nova Scotia | HST | 14% | Included | 14% |
| Nunavut | GST | 5% | None | 5% |
| Ontario | HST | 13% | Included | 13% |
| Prince Edward Island | HST | 15% | Included | 15% |
| Quebec | GST + QST | 5% | 9.975% QST | 14.975% |
| Saskatchewan | GST + PST | 5% | 6% PST | 11% |
| Yukon | GST | 5% | None | 5% |
The rate generally follows where the customer receives the goods or services (the place-of-supply rules), not where the seller is located. That is why a bookkeeper must check each invoice's tax code.
Who must register
A business generally must register for GST/HST once its taxable revenue goes over $30,000 in a single calendar quarter or over four consecutive calendar quarters. Below that, it is a "small supplier" and registration is optional. Many small businesses register voluntarily so they can claim input tax credits.
Input tax credits
Registered businesses claim ITCs for the GST/HST they pay on purchases used in their commercial activities. Net tax is simply:
GST/HST collected on sales − input tax credits = net tax payable (or a refund if negative)
Claims need proper supporting documents. Missing or incomplete receipts are one of the most common reasons ITCs are denied in a sales tax audit.
Reporting periods and deadlines
| Annual taxable supplies | Assigned reporting period | Return generally due |
|---|---|---|
| $1.5 million or less | Annual (can elect quarterly or monthly) | 3 months after fiscal year-end for most filers |
| Over $1.5M up to $6M | Quarterly (can elect monthly) | 1 month after the end of each quarter |
| Over $6 million | Monthly | 1 month after the end of each month |
Returns are usually filed electronically, for example through the CRA's My Business Account or GST/HST NETFILE. Special rules apply to some filers, such as individuals with a December 31 year-end, so always confirm the client's deadline with the CRA.
The bookkeeper's monthly routine
- Make sure every sale and purchase carries the correct tax code.
- Reconcile bank and credit card accounts so no transactions are missing.
- Review the GST/HST report in the software (QuickBooks Online, Desktop or Xero) against the general ledger.
- Keep receipts organized to support every ITC.
- Prepare and file the return, and record the payment or refund.
RAI teaches this hands-on in every package, including complimentary GST/HST return preparation and filing on CRA and sales tax audit training. See the Canadian sales tax training.