What is HST?

New Brunswick, Newfoundland and Labrador, Nova Scotia, and Ontario have combined their respective provincial sales taxes with the GST to create a harmonized sales tax (HST) in each of these provinces. The HST rate in New Brunswick, Newfoundland and Labrador, and Ontario is 13%, composed of a 5% federal part (equal to the 5% GST) and an 8% provincial part. The HST rate in Nova Scotia is 15%, composed of a 5% federal part (equal to the 5% GST) and an 10% provincial part.

On April 1, 2013, Prince Edward Island harmonized its provincial sales tax with the GST to implement the HST at the rate of 14%, composed of a 5% federal part (equal to the 5% GST) and an 9% provincial part.

Also, as of April 1, 2013, the HST at the rate of 12% (5% federal part and 7% provincial part) no longer applies in British Columbia. The HST at the rate of 12% has been replaced by the GST at the rate of 5% and a provincial sales tax.

Those provinces that have combined their respective provincial sales taxes with the GST to create the HST are known as participating provinces.

Generally, GST/HST registrants must charge and account for the GST on taxable supplies (other than zero-rated supplies) of property and services made in Canada. However, where GST/HST registrants make taxable supplies (other than zero-rated supplies) in Canada, and those supplies are made in a participating province, they must charge and account for the HST instead of the GST.

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