If you are running a business, self-employed, or a contractor in Canada, you may be required to charge GST or HST on sales to other provinces.
GST and HST are charged by businesses and contractors that no longer qualify as small suppliers. The rate of GST or HST you charge will depend on where business is conducted.
In this article, we will outline what GST and HST taxes are and how much you must charge.
What are GST and HST Taxes?
GST and HST are taxes on the sale of any taxable goods and services in Canada. Regardless of which province you are conducting business in, you will need to charge HST or GST for business conducted in that region.
The tax breakdown (according to the CRA) is as follows:
- 5% (GST) in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon
- 13% (HST) in Ontario
- 15% (HST) in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island
Businesses that collect GST or HST payments are required to remit them to the government at a later period.
Do I charge GST or HST on Sales to Other Provinces?
Anyone conducting legal business in Canada is required to charge GST or HST on any sales made in Canada, regardless of where the business is located.
Once a business is no longer exempt as a small supplier, they are required to charge GST and HST. These forms of taxes exist for all business structures, from sole proprietor to corporation.
Ensure you are charging the right amount for GST and HST to avoid filing errors. If you have any questions regarding your tax requirements, contact NaickerCPA today. Our professional team of accountants can help answer any questions you have.
If you have any questions about this article or business taxes, in general, or you want to make an appointment with an accounting professional at Naicker & Associates, please contact us at (604) 469-9369. We are based in Port Moody, BC.