Selling or buying in other provinces or territories: which sales taxes apply?
Whenever your company does out-of-province business, different sales taxes may be required. This includes GST, HST and possibly the provincial or territorial sales taxes. We want to help you understand your obligations.
Will it be GST or HST?
Remember that any business registered with the Canada Revenue Agency (CRA) to collect GST is automatically registered to collect HST. A new Business Number or tax account is not necessary. The same is true for firms registered to collect HST who also deal with GST on some transactions.
CRA's Place of Supply rules determine whether or not a business is to collect 5% GST or the 12% HST or 13% HST.
- When a taxable sale (other than zero-rated) is made in a non-HST participating province, the supplier collects GST.
- When a sale is made in a participating province (NB, NS, NL, ON & BC), the supplier collects HST at the rate in effect for that particular province. As of July 1, 2010, the HST rates were 12% in BC, 13% in NB, NL & ON and 15% in NS. CRA's Place of Supply bulletin contains detailed explanations and examples of various situations.
If you still are not sure about GST/HST given the specifics of your interprovincial business transactions, ask CRA for written information. This is a free service. An interpretation sets out how the legislation applies to a generic fact situation. A ruling sets out how the relevant provisions of the legislation apply to a clearly defined fact situation of the taxpayer. To learn more, visit GST/HST rulings and interpretations or call 1-800-959-8287.
Below you will find more information about GST/HST, along with resources on provincial and territorial sales taxes.
Remember CFIB's Business Counsellors are available to answer your questions. You can reach us at 1-888-234-2232.
