When you are registered to collect GST or HST and make a sale of goods or services to payer in another province, you must charge the rate of GST or HST according to the rate in the payer’s province.
For example, if you are a vendor based in Ontario and registered to collect HST, and you make a sale in Alberta, you must charge 5% GST, not 13% HST on that sale.
Here are the rates for each province as of January 1, 2018:
Participating Provinces (provinces which charge HST)
New Brunswick – 15% HST
Newfoundland and Labrador – 15% HST
Nova Scotia – 15% HST
Ontario – 13% HST
Prince Edward Island – 15% HST
Non-Participating Provinces and Territories (provinces which charge GST)
The following provinces charge only 5% GST*
*While most of these provinces also charge a provincial sales tax (PST) internally, that rate is irrelevant to vendors who are based outside a given province. Hence, a vendor who is based in another province only has to charge 5% GST and no other sales tax in any non-participating province.
Need help with registering for, calculating, or filing your GST or HST returns? Contact us.