SaaS Sales Tax in Canada: Which Provinces Charge PST on Software?
Four provinces tax your subscription — the other nine don’t. Here’s exactly where the line falls.
The short answer
GST/HST applies everywhere — provincial tax depends on the province
Every SaaS sale to a Canadian customer attracts federal GST or HST once you exceed the $30,000 small supplier threshold — regardless of which province the customer is in. On top of that, four provinces also charge their own tax on cloud software: British Columbia (7% PST), Saskatchewan (6% PST), Manitoba (7% RST), and Quebec (9.975% QST). HST provinces (Ontario, the Maritimes) don’t add a separate software layer — HST is the only tax you collect there.
This matters because “I only sell software, so I just charge GST” is correct for some provinces and wrong for others. A $99/month subscription sold to a BC customer should include 7% BC PST on top of 5% GST. Miss it, and you’re collecting less than the province requires — and potentially liable for the difference.
Province by province
SaaS tax obligations across Canada
For GST/HST, the place of supply for digital products (including SaaS) is the recipient’s address you have on file — so the rate follows the customer’s province, not yours. If you have no address, the CRA requires you to use the highest applicable rate as a fallback (per Technical Bulletin B-103).
Provincial taxes on SaaS are determined separately by each province’s own rules. Each PST province decides independently whether cloud software is taxable under its legislation — and they don’t all agree.
SaaS tax by province / territory
| Province | GST / HST | PST on SaaS? | Total |
|---|---|---|---|
| Ontario | 13% HST | No | 13% |
| British Columbia | 5% GST | Yes — 7% PST | 12% |
| Saskatchewan | 5% GST | Yes — 6% PST | 11% |
| Manitoba | 5% GST | Yes — 7% RST | 12% |
| Quebec | 5% GST | Yes — 9.975% QST | 14.975% |
| Alberta | 5% GST | No | 5% |
| New Brunswick | 15% HST | No | 15% |
| Newfoundland & Labrador | 15% HST | No | 15% |
| Nova Scotia | 14% HST | No | 14% |
| Prince Edward Island | 15% HST | No | 15% |
| Yukon / NWT / Nunavut | 5% GST | No | 5% |
British Columbia — the strictest province
BC is the most comprehensive. PST Bulletin 105 explicitly lists SaaS, IaaS (cloud storage), APIs, and “website access that provides functionality” as taxable software. If your product lets a BC customer do something — automate invoicing, store files, run analytics — it almost certainly qualifies.
What’s not taxable under BC PST: services to software (installing, configuring, testing someone else’s software). The line is delivery of software functionality vs. professional work on software.
There is no minimum revenue threshold for out-of-province sellers soliciting BC customers. One taxable sale to a BC buyer and you may be required to register with the BC Ministry of Finance.
Quebec — separate registration required
Quebec taxes digital products including SaaS at 9.975% QST. Unlike PST provinces, QST is administered by Revenu Québec — not the CRA. A separate QST registration is required; your CRA GST number does not cover Quebec.
QST is calculated at 9.975% on the base price excluding GST — so on a $100 subscription, GST = $5.00 and QST = $9.975. Both are shown as separate line items on the invoice. Total: $114.975.
What a $99/month SaaS subscription actually costs by province
Ontario customer — $99/month
HST only. One line, one remittance to CRA.
BC customer — $99/month
Two separate taxes, two separate remittances. PST goes to BC Ministry of Finance.
Quebec customer — $99/month
GST remitted to CRA. QST remitted to Revenu Québec. QST is calculated on $99, not on $99 + GST.
Alberta customer — $99/month
No provincial tax. Alberta, Yukon, NWT, and Nunavut are 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 calculatorWhere you need to register (beyond your CRA GST number)
- BC
Register with BC Ministry of Finance for PST. No minimum threshold for out-of-province sellers who solicit BC customers.
- SK
Register with Saskatchewan Finance for PST. No minimum threshold for non-resident vendors or marketplace facilitators.
- MB
Register with Manitoba Finance for RST. Must register if you solicit sales in Manitoba (including via website targeting MB).
- QC
Register with Revenu Québec for QST. Required once taxable supplies exceed $30,000 — separate from CRA registration.
What most people get wrong
Common SaaS tax mistakes
Only charging GST/HST and ignoring provincial software tax
The most expensive mistake. Charging 5% GST to a BC customer on a SaaS subscription when you should be charging 5% GST + 7% PST means you're under-collecting 7% on every invoice. If you have 50 BC customers paying $200/month, that's $700/month in PST you're not collecting — and the province expects it from you, not from them.
Assuming HST provinces are "covered" by one registration
For GST/HST, yes — one CRA registration covers Ontario, the Maritimes, and all GST-only provinces. But for BC, SK, MB, and QC, you need separate provincial registrations with each province's own tax authority. Your CRA number means nothing to the BC Ministry of Finance.
Thinking "it's just software consulting, not SaaS" exempts you in BC
The distinction in BC is functional: are you delivering software that does something (taxable) or are you providing professional services that happen to involve software (exempt)? A subscription to a project management tool is taxable. An hourly rate to configure that same tool is not. If your product has a recurring subscription for access to functionality, BC PST almost certainly applies.
Applying Quebec's QST on top of GST
QST is calculated on the base price before GST — not on the GST-inclusive amount. On a $100 subscription: GST = $5, QST = $9.975. You don't charge QST on $105. Both taxes are calculated on $100 separately and shown as two distinct line items. Calculating QST on the GST-inclusive price inflates it by about 50 cents per $100 — small per invoice, material over thousands of Quebec customers.
Ignoring provincial tax until revenue gets large
PST obligations for SaaS sellers in BC, SK, and MB don't scale with your revenue the way the GST small supplier threshold does. There's no $30,000 grace period for BC PST if you're actively selling to BC customers. Many SaaS founders only discover this during due diligence for a fundraise or acquisition — at which point there may be years of unremitted PST to deal with.
Summary
Key takeaways
All SaaS sales to Canadian customers attract GST (5%) or HST (13–15%) once you exceed the $30,000 small supplier threshold.
Four provinces add their own tax on top: BC (7% PST), SK (6% PST), MB (7% RST), QC (9.975% QST).
HST provinces (ON, NB, NL, NS, PE) collect the provincial portion inside HST — no separate software tax.
Alberta, Yukon, NWT, and Nunavut have no provincial tax. 5% GST only.
BC has no minimum revenue threshold for out-of-province SaaS sellers who solicit BC customers.
Quebec requires a separate QST registration with Revenu Québec. Your CRA number does not cover QC.
QST is calculated on the base price before GST — not on the GST-inclusive amount.
Each PST province requires its own separate registration in addition to your CRA GST/HST number.
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 rule in this article is based on the official government publications below. Provincial tax rules for software have been changing — verify current rules directly before invoicing.
- PST Bulletin 105 — Software (SaaS, IaaS, APIs, cloud)
BC Ministry of Finance
- Provincial Sales Tax (BC PST) — main page
BC Ministry of Finance
- Provincial Sales Tax (SK PST)
Saskatchewan Finance
- Retail Sales Tax (MB RST)
Manitoba Finance
- QST — basic rules for applying GST/HST and QST
Revenu Québec
- Technical Bulletin B-103 — place of supply rules for digital products
Canada Revenue Agency
Keep reading
Related guides
BC PST on Services: What's Taxable and What's Not
BC taxes more services than any other PST province. SaaS is in, consulting is out — here's the full breakdown with bulletin references.
Selling Digital Products in Canada: A Complete Tax Guide
Downloads, licences, online courses, and more — how GST/HST and provincial taxes apply to digital products sold to Canadian buyers.
Do I Charge PST When Selling to British Columbia?
BC PST has no minimum threshold for out-of-province sellers. Physical goods, SaaS, and certain services are all in scope.
Disclaimer
TaxMapCA provides tax information, not tax advice. This article is for general informational purposes only and does not constitute legal or accounting advice. Provincial tax rules for software and SaaS are evolving — always verify current rules against the government sources linked above before invoicing or filing. TaxMapCA is not affiliated with or endorsed by the Canada Revenue Agency, Revenu Québec, the BC Ministry of Finance, or any other tax authority. For complex situations, consult a qualified CPA or tax professional.