GST/HST is an integral part of running a business, and not understanding the rules surrounding sales tax can be damaging for your business. Self-employed Canadians and businesses should be aware that they might need to register for a GST/HST account and start remitting sales tax to the CRA.
What is the Difference Between GST, HST and PST?
There are three different types of sales taxes in Canada:
- GST (Good and Services Tax)
- PST (Provincial Sales Tax) – In Manitoba, PST is also known as RST while in Quebec, it is known as QST
- HST (Harmonized Sales Tax) – HST is a combination of PST and GST. From the chart below, provinces and territories that collect HST, don’t collect GST and PST separately.
There is a chart that composes all the different sales tax and their specific rates in each province and territory... [read more]