Indirect tax ebook - Canada

Sales Tax Rates - 2009

• GST standard rate at 5% - all goods and services unless defined to be exempt or zero-rated
• HST standard rate at 13% - applies to goods and services made in the provinces of Newfoundland and Labrador, Nova Scotia, and New Brunswick 
• Province of British Columbia – 7%
• Province of Saskatchewan – 5%
• Province of Manitoba – 7%
• Province of Ontario – 8% 
• Province of Quebec – 7.5% on the consideration plus the GST
• Province of Prince Edward Island – 10% on the consideration plus the GST
  

As noted commencing July 1, 2010, the provinces of Ontario and British Columbia are proposing to eliminate their provincial sales tax and have a Harmonized Sales Tax. The HST in Ontario will be 13% and in British Columbia it will be 12%.

Commencing January 2011 the QST rate is proposed to increase to 8.5% on the consideration plus the GST.

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