What is the sales tax rate in Canada?
Post ByAdequate Travel
Summary
Sales tax rates in Canada are complex and vary on the provincial or territorial level. In this blog post, we'll discuss Canada's overall sales tax rate and discuss breakouts by province and territory. As you prepare for your journey, familiarize yourself with the specific entry requirements, including any necessary visas or documentation.Sales Tax Rate in Canada
Canada has different sales tax rates depending on the province or territory. The three types of sales taxes in Canada are:
1. Goods and Services Tax (GST)
The Goods and Services Tax (GST) is a federal tax applied nationwide. The current rate is 5%, which is the same for all provinces and territories.
Example: If you purchase an item for $100, the GST component will be $5 (5% of $100).
2. Provincial Sales Tax (PST)
The Provincial Sales Tax (PST) is imposed by specific provinces and territories. The rates and regulations vary across regions. Some provinces have harmonized their PST with the GST to create the Harmonized Sales Tax (HST).
Example: In British Columbia, the PST rate is 7%. If you buy an item for $100, the PST component will be $7 (7% of $100).
3. Harmonized Sales Tax (HST)
The Harmonized Sales Tax (HST) is applicable in certain provinces where the provincial sales tax (PST) has been harmonized with the GST. This tax is a combination of the federal GST and the provincial sales tax.
Example: In Ontario, the HST rate is 13%. If you purchase an item for $100, the HST component will be $13 (13% of $100).
It is important to note that not all provinces have implemented the HST. Some provinces operate with the PST and GST separately.
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