GST vs HST: What’s the Difference for Canadian Businesses?
Same federal tax, different packaging — here’s what that means for your invoices.
The short answer
HST is GST with a provincial top-up baked in
GST (Goods and Services Tax) is the federal 5% tax that applies across all of Canada. HST (Harmonized Sales Tax) is what five provinces use instead of charging GST and provincial tax separately — they merged them into one combined rate on a single line. Ontario, New Brunswick, Newfoundland, Nova Scotia, and Prince Edward Island use HST. Every other province charges GST and their own provincial tax (PST, QST, or RST) as two separate amounts.
Practically speaking: if your customer is in an HST province, you charge one rate (e.g., 13% for Ontario). If they’re in a non-HST province, you charge 5% GST and then determine whether their province’s separate sales tax also applies. If they’re in Alberta, the Northwest Territories, Nunavut, or Yukon — no provincial tax at all, just 5% GST.
One registration covers both: if you’re registered for GST with the CRA, you’re automatically registered for HST too. There is no separate HST registration.
How it works
Every province's rate — and which tax applies
The rate you charge depends on your customer’s province, not yours. This is the “place of supply” rule: for physical goods, it’s where the goods are delivered; for services, it’s the recipient’s address you have on file. So a seller in Alberta invoicing a client in Ontario charges 13% HST — not 5% GST.
Current rates by province / territory
| Province / Territory | Tax type | Total rate | Provincial portion |
|---|---|---|---|
| Ontario | HST | 13% | 8% |
| New Brunswick | HST | 15% | 10% |
| Newfoundland & Labrador | HST | 15% | 10% |
| Nova ScotiaChanged from 15% April 1, 2025 | HST | 14% | 9% |
| Prince Edward Island | HST | 15% | 10% |
| British Columbia | GST + PST | 12% | 7% PST |
| Saskatchewan | GST + PST | 11% | 6% PST |
| Manitoba | GST + RST | 12% | 7% RST |
| Quebec | GST + QST | 14.975% | 9.975% QST |
| Alberta | GST only | 5% | None |
| Northwest Territories | GST only | 5% | None |
| Nunavut | GST only | 5% | None |
| Yukon | GST only | 5% | None |
How HST appears on an invoice
In an HST province, you show one line: “HST (13%)” — not separate GST and provincial lines. The CRA collects the full HST amount and transfers the provincial portion to the province on your behalf. From your perspective as the seller, it’s simpler: one rate, one remittance.
How GST + provincial tax appears on an invoice
In a non-HST province with its own tax (BC, SK, MB, QC), you typically show two separate lines: “GST (5%)” and “PST (7%)” (or QST, or RST). These are remitted to different authorities — GST goes to the CRA, provincial tax goes to the provincial authority.
Ontario client — $1,000 invoice
One line. One remittance to CRA. CRA forwards Ontario's 8% portion to the province.
BC client — $1,000 invoice (physical goods)
Two lines. GST remitted to CRA. PST remitted separately to BC Ministry of Finance.
Alberta client — $1,000 invoice
Alberta has no provincial sales tax. 5% GST only.
Free tool
Calculate your exact rate
Use our free Canadian sales tax calculator to get the answer for your specific situation — seller province, buyer province, and product type — with government sources cited.
Use the free calculatorQuebec: a special case
Quebec is not an HST province, but it’s not straightforward GST + PST either. The Quebec Sales Tax (QST) is 9.975%, and it’s administered by Revenu Québec — not the CRA. Quebec businesses deal with Revenu Québec for both GST and QST. If you sell to Quebec customers and exceed the $30,000 threshold, you need a separate QST registration with Revenu Québec. QST is calculated on the base price excluding GST (not on GST-inclusive price).
What most people get wrong
Common GST vs HST mistakes
Charging your own province's rate to customers everywhere
If you're in Ontario and invoice a client in Alberta, you charge 5% GST — not 13% HST. The rate is determined by the customer's province, not yours. A Nova Scotia business invoicing a BC client charges 5% GST (plus 7% BC PST on taxable goods) — not 14% HST. Getting this backwards means either overcharging customers or under-remitting to the CRA.
Thinking HST and GST are separate registrations
They aren't. When you register for GST with the CRA, you are automatically registered for HST in all HST provinces. There is no separate HST number or registration form. One GST/HST number covers everything you charge under the federal framework.
Forgetting that Nova Scotia's HST rate changed in 2025
Nova Scotia reduced its HST from 15% to 14% on April 1, 2025. If you have invoicing software, spreadsheets, or templates that still say 15% for Nova Scotia, they are now wrong. The current rate is 14% (5% federal + 9% provincial).
Assuming HST provinces don't have additional taxes on specific goods
HST consolidates the general sales tax, but some product-specific taxes still apply separately. Ontario's point-of-sale rebates mean some products effectively carry only 5% (children's clothing, books, diapers). These aren't exemptions — the 8% provincial portion is rebated at the register. If you sell qualifying items in Ontario, you should be applying these rebates.
Thinking the small supplier threshold is per-year
The $30,000 threshold is measured over four consecutive calendar quarters — not a calendar year. If you earn $8,000/quarter, you're over $30,000 after four quarters and must register within 29 days. You can also hit the threshold in a single quarter (e.g., one large contract). Once you cross it, you must register immediately — there's no grace period beyond the 29 days.
Summary
Key takeaways
GST is the 5% federal tax. HST is GST combined with the provincial rate into one number — same tax, different packaging.
HST provinces: Ontario (13%), New Brunswick (15%), Newfoundland (15%), Nova Scotia (14%), PEI (15%).
Non-HST provinces charge GST (5%) separately from their own tax: BC PST (7%), SK PST (6%), MB RST (7%), QC QST (9.975%).
Alberta, Yukon, NWT, and Nunavut have no provincial tax — 5% GST only.
One GST registration covers all HST provinces automatically. No separate registration needed.
Quebec requires a separate QST registration with Revenu Québec — it is not part of the CRA GST registration.
The rate is always determined by the customer's province (place of supply), not yours.
Nova Scotia reduced its HST rate from 15% to 14% on April 1, 2025 — update any templates accordingly.
Free tool
Calculate your exact rate
Use our free Canadian sales tax calculator to get the answer for your specific situation — seller province, buyer province, and product type — with government sources cited.
Use the free calculatorGovernment sources
Sources
Every rate and rule in this article is sourced from the official government publications below. Always verify current rates directly before invoicing.
- GST/HST — which rate to charge (rates table)
Canada Revenue Agency
- GST/HST for businesses — overview
Canada Revenue Agency
- Place of supply — practical guide
Canada Revenue Agency
- Small supplier threshold — Guide RC4022
Canada Revenue Agency
- QST — basic rules for applying GST/HST and QST
Revenu Québec
Keep reading
Related guides
Do I Need to Register for GST/HST?
The $30,000 small supplier threshold explained — how it's calculated, when the clock starts, and what happens if you miss the deadline.
Ontario HST Point-of-Sale Rebates: Which Products Qualify?
Ontario rebates the 8% provincial portion of HST on children's clothing, books, diapers, and more. Here's the precise list.
The $30,000 Small Supplier Threshold: Everything You Need to Know
How the four-quarter rolling window works, what counts toward the total, and the 29-day registration deadline.
Disclaimer
TaxMapCA provides tax information, not tax advice. This article is for general informational purposes only and does not constitute legal or accounting advice. Tax rates and rules change — always verify current rates against the government sources linked above before invoicing or filing. TaxMapCA is not affiliated with or endorsed by the Canada Revenue Agency, Revenu Québec, or any provincial tax authority. For complex situations, consult a qualified CPA or tax professional.