What is the Difference Between GST, HST and PST<\/strong>?<\/h3>\n\n\n\nThere are three different types of sales tax in Canada:<\/p>\n\n\n\n
\n- GST (Good and Services Tax)<\/strong><\/li>\n\n\n\n
- PST (Provincial Sales Tax)<\/strong> – In Manitoba, PST is also known as RST, while in Quebec, it is known as QST<\/li>\n\n\n\n
- HST (Harmonized Sales Tax)<\/strong> – HST is a combination of PST and GST. From the chart below, provinces and territories that collect HST, don\u2019t collect GST and PST separately.<\/li>\n<\/ol>\n\n\n\n
It is important not to confuse GST\/HST with PST (RST & QST) as GST\/HST is a federal sales tax while PST is provincial. Businesses must take note of this and do the appropriate sales tax filings.<\/p>\n\n\n\n
Just in case, if you wanted to learn more about GST\/HST<\/strong><\/a>, we wrote a summative blog post about it as well.<\/p>\n\n\n\nBelow is a chart that composes all the different sales tax and their specific rates in each province and territory:<\/p>\n\n\n\n
<\/div>\n\n\n\n![\"Provincial](\"https:\/\/accountingtoronto.ca\/staging\/wp-content\/uploads\/2021\/07\/Provincial-Sales-tax-PST-1024x787.jpg\")
<\/figure><\/div>\n\n\n<\/div>\n\n\n\nWhat are the Provinces and Territories that Collect PST?<\/strong><\/h3>\n\n\n\n\n- British Columbia – 7%<\/li>\n\n\n\n
- Manitoba – Also known as Retail Sales Tax (RST) at 7%<\/li>\n\n\n\n
- Quebec – Also known as Quebec Sales Tax (QST) at 9.975%<\/li>\n\n\n\n
- Saskatchewan – 6%<\/li>\n<\/ol>\n\n\n\n<\/div>\n\n\n\n
How do I Know if I Need to Charge Provincial Sales Tax<\/strong> (PST)?<\/strong><\/h3>\n\n\n\nFor most businesses, Provincial Sales Tax (PST) applies to most goods and services <\/strong>and they are known as taxable supplies.<\/strong><\/p>\n\n\n\nHowever, some goods and services are exempt from PST<\/strong> and are known as exempt supplies<\/a><\/u><\/strong>. There are also goods and services that have a PST of 0%,<\/strong> they are known as zero-rated supplies<\/a><\/u><\/strong>.<\/p>\n\n\n\n![\"Provincial](\"https:\/\/accountingtoronto.ca\/staging\/wp-content\/uploads\/2021\/07\/PST.jpg\")
<\/figure><\/div>\n\n\nWhat are Input Tax Credits (ITC) and Why are they Useful?<\/strong><\/h3>\n\n\n\nWhen filing your PST return<\/strong>, your business can claim a sum of GST\/HST paid on purchases and expenses for your business<\/strong>. These are known as input tax credits (ITC)<\/a><\/u><\/strong> and they are extremely useful to get some money back.<\/p>\n\n\n\n<\/div>\n\n\n\n(a) British Columbia PST<\/strong><\/h2>\n\n\n\n<\/div>\n\n\n\nEffective since April 1, 2021, most businesses<\/a> (within or outside Canada) <\/strong>must register for a PST account and remit PST to the BC government (unless exempt<\/a>) as long as the business has exceeded the minimum BC revenue threshold of $10,000.<\/strong><\/p>\n\n\n\nThis means that businesses that made over $10,000 in revenue from BC consumers must register for a PST account <\/strong>and remit PST<\/strong> (by filing a PST return).<\/p>\n\n\n\nBusinesses can voluntarily choose to register for a PST account even before they meet the BC revenue threshold<\/strong>. They have the choice of not collecting until the BC $10,000 revenue threshold has been reached<\/strong>.<\/p>\n\n\n\nThe filing frequency<\/strong> will depend on the average PST collected<\/strong>.<\/p>\n\n\n\n![\"British](\"https:\/\/accountingtoronto.ca\/staging\/wp-content\/uploads\/2021\/07\/BC.jpg\")
<\/figure>\n\n\n\nExempt from BC Provincial Sales Tax<\/strong> (PST):<\/strong><\/h3>\n\n\n\nPST does not need to pay for:<\/p>\n\n\n\n
\n- Bicycles<\/li>\n\n\n\n
- Food (Groceries and restaurant meals)<\/li>\n\n\n\n
- Children clothing<\/li>\n\n\n\n
- Prescription medicines and household medical aids<\/li>\n\n\n\n
- Books, newspapers, and magazines<\/li>\n\n\n\n
- Sales of real property such as residential housing or commercial real estate<\/li>\n\n\n\n
- Leases of real property (bare land, farmland, retail and commercial space, storage space, and long-term accommodation (over one month))<\/li>\n\n\n\n
- Membership or event admission (such as tickets, and passes to sporting\/music events)<\/li>\n\n\n\n
- Non-taxable or exempt services (such as transportation, dry cleaning, financial, consulting and management services)<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Business with inventory held in BC<\/strong><\/h3>\n\n\n\nYou must register (before you sell goods held in inventory), collect and remit BC PST if you do all of the following:<\/p>\n\n\n\n
\n- Sell taxable goods to customers in BC<\/li>\n\n\n\n
- Accept orders from customers located in BC<\/li>\n\n\n\n
- Hold the goods you sell to your BC customers in inventory in BC at all times of sales<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
How to Register for BC PST?<\/strong><\/h3>\n\n\n\n\n- Online<\/strong>: Using eTaxBC<\/a><\/li>\n\n\n\n
- In person<\/strong>: Visit the nearest Service BC Centre<\/li>\n\n\n\n
- By fax or mail:<\/strong> The application FIN 418 (Registration for Provincial Sales Tax must be completed. Fax number is 250-356-2195 while mailing address is Ministry of Finance, PO Box 9435 STN Prov Gov, Victoria BC V8W 9V3<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
How does my Business Remit BC PST?<\/strong><\/h3>\n\n\n\nSimilar to filing a GST\/HST return, the BC PST return can be filed electronically using eTaxBC<\/a>.<\/p>\n\n\n\n<\/div>\n\n\n\n(b) Manitoba PST (RST – Retail Sales Tax)<\/strong><\/h2>\n\n\n\n<\/div>\n\n\n\nUnlike British Columbia, there is no revenue threshold <\/strong>for a business to meet before a business must start collecting RST. All taxable goods and services must charge RST (unless exempt<\/a>).<\/p>\n\n\n\nAll vendors must be RST registrants before they are able to sell or provide taxable goods and services.<\/p>\n\n\n\n
The filing frequency<\/strong> will depend on the average RST collected<\/strong>. Annually if collected less than $500 RST but monthly if $5,000 and more.<\/p>\n\n\n\n<\/div>\n\n\n\nExamples of Exempt Goods:<\/strong><\/h3>\n\n\n\n\n- Agricultural feeds<\/li>\n\n\n\n
- Baby supplies<\/li>\n\n\n\n
- Children clothing<\/li>\n\n\n\n
- Food<\/li>\n\n\n\n
- Medicine (Drugs sold on prescription)<\/li>\n\n\n\n
- Food and beverages that are exempted as \u201cbasic groceries\u201d under GST<\/li>\n\n\n\n
- Female hygiene products (Tampons, pads, menstrual cups)<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
How to Register for BC Provincial Sales Tax<\/strong> (PST)?<\/strong><\/h3>\n\n\n\n\n- Online<\/strong>: Using TAXcess<\/a><\/li>\n\n\n\n
- In person<\/strong>: Visit the nearest Taxation Tax Division Office<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
![\"British](\"https:\/\/accountingtoronto.ca\/staging\/wp-content\/uploads\/2021\/07\/BC-PST-1024x683.jpg\")
<\/figure><\/div>\n\n\n<\/div>\n\n\n\n(c) Quebec PST (QST – Quebec Sales Tax)<\/strong><\/h2>\n\n\n\n<\/div>\n\n\n\nBusinesses that surpass the worldwide revenue of $30,000 <\/strong>need to register and collect QST from their consumers (unless exempt). This is similar to the BC PST threshold except the difference<\/strong> is that BC\u2019s threshold revenue of $10,000 is revenue amounts made in BC only while the QST $30,000 threshold is revenue not limited to Quebec<\/strong>.<\/p>\n\n\n\n<\/div>\n\n\n\nMandatory QST Registration:<\/strong><\/h3>\n\n\n\n\n- Tobacco at retail<\/li>\n\n\n\n
- Fuel at retail<\/li>\n\n\n\n
- Alcoholic beverages<\/li>\n\n\n\n
- Sell or lease of new tires<\/li>\n\n\n\n
- Sell or lease of new or used vehicles<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Exempt Goods:<\/strong><\/h3>\n\n\n\nGoods exempt from QST is the list of goods exempted from GST\/HST<\/p>\n\n\n\n
Examples of exempt goods and services are:<\/p>\n\n\n\n
\n- Services by public sector bodies<\/li>\n\n\n\n
- Most financial services<\/li>\n\n\n\n
- Most health, education, childcare and legal service aid<\/li>\n\n\n\n
- Sales of most residential complexes (not new)<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
How to Register for QST?<\/strong><\/h3>\n\n\n\n\n- Online<\/strong>: Using My Account for businesses<\/a><\/li>\n\n\n\n
- Call line<\/strong>: List of telephone numbers<\/a><\/li>\n\n\n\n
- By mail:<\/strong> List of mailing addresses<\/a><\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
How does my Business Remit QST?<\/strong><\/h3>\n\n\n\nBusinesses can do this online using theMy Account for businesses<\/a> or My Account for individuals<\/a>.<\/p>\n\n\n\n<\/div>\n\n\n\n(d) Saskatchewan PST<\/strong><\/h2>\n\n\n\n<\/div>\n\n\n\nAll businesses in Saskatchewan (resident or not) must be a PST registrant before they can conduct any sales (unless exempt or small supplier).<\/p>\n\n\n\n
The filing frequency<\/strong> will depend on the average PST collected<\/strong>.<\/p>\n\n\n\n<\/div>\n\n\n\nWhat is a Small Supplier:<\/strong><\/h3>\n\n\n\n\n- Less than annual sales $10,000<\/li>\n\n\n\n
- Produces and sells good in their residence on a small scale or non-commercial basis<\/li>\n<\/ol>\n\n\n\n
As long as these two criteria are met, the business does not need to be a PST registrant. The moment the business conducts business outside of their residence or sells to commercial customers, they are required to then collect PST.<\/p>\n\n\n\n
<\/div>\n\n\n\nWhat is Exempt from Provincial Sales Tax<\/strong> (PST)?<\/strong><\/h3>\n\n\n\n\n- Basic grocery<\/li>\n\n\n\n
- Books & magazines<\/li>\n\n\n\n
- Agricultural equipment<\/li>\n\n\n\n
- Prescription drugs<\/li>\n\n\n\n
- Healthcare services<\/li>\n\n\n\n
- Spas\u2019 \/ Beauty Salon\/ Tattooing services<\/li>\n\n\n\n
- Some training services<\/li>\n\n\n\n
- Some consulting services (management & consulting)<\/li>\n\n\n\n
- Limousine services<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
How to Register for Provincial Sales Tax<\/strong> (PST) in Saskatchewan?<\/strong><\/h3>\n\n\n\n\n- Online: <\/strong>Using SETS<\/a><\/li>\n\n\n\n
- Mail<\/strong>: Fill up the Application for Vendor’s Licence\/Consumer Permit<\/a> and submit it to Ministry of Finance, Revenue Division, PO BOX 200, Regina, SK, S4P 2Z6<\/li>\n\n\n\n
- Email<\/strong>: Fill up the Application for Vendor’s Licence\/Consumer Permit<\/a> and submit it to SaskTaxInfo@gov.sk.ca<\/a><\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
How to Remit Provincial Sales Tax<\/strong> (PST)?<\/strong><\/h3>\n\n\n\nBusinesses can remit PST using the online service SETS<\/a><\/p>\n\n\n\nAt SDG Accountant<\/strong>, our accountants are trained to help clients with GST\/HST and Provincial Sales Tax (PST) returns. We can help claim the input tax credits to help your business get a sum of money back. For more information, admin@sdgaccountant.com<\/a><\/strong> for assistance or book a free consultation<\/a><\/u>.<\/strong><\/p>\n\n\n\n
\n\n\n\n
It is important not to confuse GST\/HST with PST (RST & QST) as GST\/HST is a federal sales tax while PST is provincial. Businesses must take note of this and do the appropriate sales tax filings.<\/p>\n\n\n\n
Just in case, if you wanted to learn more about GST\/HST<\/strong><\/a>, we wrote a summative blog post about it as well.<\/p>\n\n\n\n Below is a chart that composes all the different sales tax and their specific rates in each province and territory:<\/p>\n\n\n\n For most businesses, Provincial Sales Tax (PST) applies to most goods and services <\/strong>and they are known as taxable supplies.<\/strong><\/p>\n\n\n\n However, some goods and services are exempt from PST<\/strong> and are known as exempt supplies<\/a><\/u><\/strong>. There are also goods and services that have a PST of 0%,<\/strong> they are known as zero-rated supplies<\/a><\/u><\/strong>.<\/p>\n\n\n When filing your PST return<\/strong>, your business can claim a sum of GST\/HST paid on purchases and expenses for your business<\/strong>. These are known as input tax credits (ITC)<\/a><\/u><\/strong> and they are extremely useful to get some money back.<\/p>\n\n\n\n Effective since April 1, 2021, most businesses<\/a> (within or outside Canada) <\/strong>must register for a PST account and remit PST to the BC government (unless exempt<\/a>) as long as the business has exceeded the minimum BC revenue threshold of $10,000.<\/strong><\/p>\n\n\n\n This means that businesses that made over $10,000 in revenue from BC consumers must register for a PST account <\/strong>and remit PST<\/strong> (by filing a PST return).<\/p>\n\n\n\n Businesses can voluntarily choose to register for a PST account even before they meet the BC revenue threshold<\/strong>. They have the choice of not collecting until the BC $10,000 revenue threshold has been reached<\/strong>.<\/p>\n\n\n\n The filing frequency<\/strong> will depend on the average PST collected<\/strong>.<\/p>\n\n\n\n PST does not need to pay for:<\/p>\n\n\n\n You must register (before you sell goods held in inventory), collect and remit BC PST if you do all of the following:<\/p>\n\n\n\n Similar to filing a GST\/HST return, the BC PST return can be filed electronically using eTaxBC<\/a>.<\/p>\n\n\n\n Unlike British Columbia, there is no revenue threshold <\/strong>for a business to meet before a business must start collecting RST. All taxable goods and services must charge RST (unless exempt<\/a>).<\/p>\n\n\n\n All vendors must be RST registrants before they are able to sell or provide taxable goods and services.<\/p>\n\n\n\n The filing frequency<\/strong> will depend on the average RST collected<\/strong>. Annually if collected less than $500 RST but monthly if $5,000 and more.<\/p>\n\n\n\n Businesses that surpass the worldwide revenue of $30,000 <\/strong>need to register and collect QST from their consumers (unless exempt). This is similar to the BC PST threshold except the difference<\/strong> is that BC\u2019s threshold revenue of $10,000 is revenue amounts made in BC only while the QST $30,000 threshold is revenue not limited to Quebec<\/strong>.<\/p>\n\n\n\n Goods exempt from QST is the list of goods exempted from GST\/HST<\/p>\n\n\n\n Examples of exempt goods and services are:<\/p>\n\n\n\n Businesses can do this online using theMy Account for businesses<\/a> or My Account for individuals<\/a>.<\/p>\n\n\n\n All businesses in Saskatchewan (resident or not) must be a PST registrant before they can conduct any sales (unless exempt or small supplier).<\/p>\n\n\n\n The filing frequency<\/strong> will depend on the average PST collected<\/strong>.<\/p>\n\n\n\n As long as these two criteria are met, the business does not need to be a PST registrant. The moment the business conducts business outside of their residence or sells to commercial customers, they are required to then collect PST.<\/p>\n\n\n\n Businesses can remit PST using the online service SETS<\/a><\/p>\n\n\n\n At SDG Accountant<\/strong>, our accountants are trained to help clients with GST\/HST and Provincial Sales Tax (PST) returns. We can help claim the input tax credits to help your business get a sum of money back. For more information, admin@sdgaccountant.com<\/a><\/strong> for assistance or book a free consultation<\/a><\/u>.<\/strong><\/p>\n\n\n\n<\/figure><\/div>\n\n\nWhat are the Provinces and Territories that Collect PST?<\/strong><\/h3>\n\n\n\n
\n
How do I Know if I Need to Charge Provincial Sales Tax<\/strong> (PST)?<\/strong><\/h3>\n\n\n\n
<\/figure><\/div>\n\n\nWhat are Input Tax Credits (ITC) and Why are they Useful?<\/strong><\/h3>\n\n\n\n
(a) British Columbia PST<\/strong><\/h2>\n\n\n\n
<\/figure>\n\n\n\nExempt from BC Provincial Sales Tax<\/strong> (PST):<\/strong><\/h3>\n\n\n\n
\n
Business with inventory held in BC<\/strong><\/h3>\n\n\n\n
\n
How to Register for BC PST?<\/strong><\/h3>\n\n\n\n
\n
How does my Business Remit BC PST?<\/strong><\/h3>\n\n\n\n
(b) Manitoba PST (RST – Retail Sales Tax)<\/strong><\/h2>\n\n\n\n
Examples of Exempt Goods:<\/strong><\/h3>\n\n\n\n
\n
How to Register for BC Provincial Sales Tax<\/strong> (PST)?<\/strong><\/h3>\n\n\n\n
\n
<\/figure><\/div>\n\n\n(c) Quebec PST (QST – Quebec Sales Tax)<\/strong><\/h2>\n\n\n\n
Mandatory QST Registration:<\/strong><\/h3>\n\n\n\n
\n
Exempt Goods:<\/strong><\/h3>\n\n\n\n
\n
How to Register for QST?<\/strong><\/h3>\n\n\n\n
\n
How does my Business Remit QST?<\/strong><\/h3>\n\n\n\n
(d) Saskatchewan PST<\/strong><\/h2>\n\n\n\n
What is a Small Supplier:<\/strong><\/h3>\n\n\n\n
\n
What is Exempt from Provincial Sales Tax<\/strong> (PST)?<\/strong><\/h3>\n\n\n\n
\n
How to Register for Provincial Sales Tax<\/strong> (PST) in Saskatchewan?<\/strong><\/h3>\n\n\n\n
\n
How to Remit Provincial Sales Tax<\/strong> (PST)?<\/strong><\/h3>\n\n\n\n
\n\n\n\n