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.
*Note: In Quebec, GST and HST must be collected and remitted to Revenu Québec.
CRA's Place of Supply rules determine whether or not a business is to collect 5% GST or the 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 & PE), the supplier collects HST at the rate in effect for that particular province. As of October 1, 2016, the HST rates are 15% in NB, NL, NS and PE, and 13% in ON. 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.
What about provincial or territorial taxes?
An overview of charging and collecting sales tax offers insight on which tax applies to your transaction. You may want to start at charging sales tax to out-of-province/territory customers.
CFIB's Business Counsellors are available to answer your questions. Contact us at firstname.lastname@example.org or by calling 1–888–234–2232.
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