GST, HST, and PST/QST explained
Canada’s sales tax is layered between the federal government and the provinces. The rate to charge depends on the type of supply, where the supply is made, and who receives it. The customer’s address can matter, but it is not the only factor. The federal Goods and Services Tax (GST) rate is 5%. Participating provinces combine the federal and provincial portions as Harmonized Sales Tax (HST).
Ontario applies 13% HST. New Brunswick, Newfoundland and Labrador, and Prince Edward Island apply 15% HST. Nova Scotia has applied 14% HST since April 1, 2025. Other provinces may impose a separate Provincial Sales Tax (PST), while Quebec administers the Quebec Sales Tax (QST). Alberta and the territories have no provincial sales tax.
The table shows the published general rates and structure. Provincial registration and special-rate rules are separate, so confirm both the place of supply and the current treatment before issuing.
| Province or territory | Tax structure | Published general rate or lines |
|---|---|---|
| Ontario | HST (combined) | 13% HST |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | HST (combined) | 15% HST |
| Nova Scotia | HST (combined) | 14% HST |
| British Columbia, Saskatchewan, Manitoba | GST + PST (separate) | 5% GST plus the applicable PST |
| Quebec | GST + QST (separate) | 5% GST plus the applicable QST |
| Alberta, Northwest Territories, Nunavut, Yukon | GST only | 5% GST |
The $30,000 small-supplier threshold
Most businesses remain small suppliers while worldwide revenues from taxable supplies, including zero-rated supplies, stay at or below $30,000 across the relevant single-quarter and four-consecutive-quarter tests. Associated persons’ revenues count, and special rules apply to some organizations and activities. When the threshold is exceeded, the date registration and charging begin depends on which test was crossed, so use the CRA’s timing table rather than assuming it always starts at quarter end.
After registering, you receive a GST/HST registration number as part of your Business Number. Include it on sales documentation when the CRA’s information requirements call for it, so a GST/HST registrant customer can support an input tax credit claim. Voluntary registration can also allow an eligible business to claim input tax credits on purchases.
Provincial taxes have separate rules. PST in British Columbia, Saskatchewan, and Manitoba, and QST in Quebec, have their own registration requirements and thresholds. Selling into those provinces can therefore create obligations beyond a federal GST/HST account.
What must a GST/HST invoice show?
To let your GST/HST-registered customers claim input tax credits, the Canada Revenue Agency requires invoices to carry specific information, and the level of detail increases with the amount of the sale. FreeBillGen can prepare general party and line-item details with configurable tax, but it does not select the province, rate, registration obligations or every CRA field for you. Confirm those inputs before issuing:
- Your business name
- The name of the supplier or the business as it operates, identifying who is making the sale.
- Invoice date
- The date the invoice is issued, which anchors the reporting period for the tax.
- GST/HST registration number
- Your Business Number and GST/HST program account identifier, when required on the supporting document for the buyer’s input tax credit claim.
- Buyer details
- The customer’s name or trading name when the applicable information tier requires it.
- Description of supply
- A clear description of the goods or services provided, sufficient to identify what was sold.
- Total amount
- The total amount charged, which on larger invoices must be broken down between the goods/services and the tax.
- Tax charged
- The GST/HST amount, shown either as a separate line or with a clear statement that the total includes tax, plus the rate.
- Terms of payment
- Payment terms when the applicable information tier requires them.
Zero-rated vs exempt supplies
Not every sale carries tax at the standard rate, and Canada draws an important distinction between zero-rated and exempt supplies that affects how you invoice and what you can recover. The difference matters for your input tax credits.
Zero-rated supplies are technically taxable but at a rate of 0%. Examples include basic groceries, prescription drugs, certain medical devices, and most exports. Because they are still taxable supplies, you show 0% tax on the invoice and, importantly, you can still claim input tax credits to recover the GST/HST you paid on related business expenses. Zero-rating is favorable: no tax to the customer, full recovery for you.
Exempt supplies are outside the GST/HST system entirely. Examples include most health and dental services, many financial services, residential rents, and most educational services. On an exempt supply you do not charge GST/HST, but you also cannot claim input tax credits on the expenses tied to making those supplies. So while both zero-rated and exempt sales show no tax to the customer, only zero-rated sales let you recover your own input tax, which is why correctly classifying your supplies matters.
Canadian invoicing questions
What sales tax do I charge on a Canadian invoice?
It depends on the type of supply, the applicable place-of-supply rules and the recipient. Published general rates include 13% HST in Ontario, 14% in Nova Scotia, and 15% in New Brunswick, Newfoundland and Labrador, and Prince Edward Island. Other provinces may use 5% GST alone or GST together with PST or QST. Confirm the current federal and provincial rules for the transaction.
When do I have to register for GST/HST in Canada?
Most businesses must register when worldwide revenues from taxable supplies exceed $30,000 under either the single-quarter or four-consecutive-quarter test. The effective date differs between those tests, and associated persons’ revenues and special cases can change the result. Eligible small suppliers can register voluntarily.
What must a GST/HST invoice include?
A compliant invoice should show your business name, the invoice date, your GST/HST registration number, a description of the goods or services, and the total amount with the GST/HST clearly stated. For larger sales the Canada Revenue Agency also requires the buyer’s name and a breakdown of the tax, so more detail is needed as the amount increases.
Do I need to show my GST/HST number on invoices?
A registered supplier must provide the prescribed information needed to support a customer’s input tax credit claim. That includes the supplier’s GST/HST registration number at the applicable documentation tier. Check the CRA table for the sale amount and document type instead of treating every receipt as identical.
What is the difference between zero-rated and exempt supplies?
Zero-rated supplies are taxable at 0%, such as basic groceries and most exports; you charge no tax but can still claim input tax credits on related expenses. Exempt supplies, such as many health and financial services, fall outside the GST/HST system; you charge no tax and cannot claim input tax credits. Both show no tax to the customer, but only zero-rated sales allow tax recovery.
Do PST and QST have separate rules from GST/HST?
Yes. PST in British Columbia, Saskatchewan, and Manitoba, and the QST in Quebec, are administered separately from the federal GST/HST and have their own registration requirements, thresholds, and rules. Selling into those provinces can create additional registration and collection obligations beyond your federal GST/HST account, so check each province where you have customers.