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There’s no VAT in Canada. The federal sales tax is the GST, 5% everywhere, and in some provinces it’s blended into an HST or sits next to a provincial tax. On a $1,000 purchase before tax, you pay $130 in Ontario, $50 in Alberta and $149.75 in Quebec.
Is the GST the same as VAT in Canada?
It does the same job under a different name. Like a VAT, it’s charged at each step of a sale, and a business that registers can claim back the tax it paid on what it bought. The CRA calls those claims input tax credits. Visitors from countries with a VAT tend to look for a VAT number, and Canadian invoices don’t have one. They show a GST/HST registration number instead.
Which rate applies depends on the place of supply, which the CRA describes as where you make the sale, lease or other supply. So a seller in one province can charge different rates to buyers in different places.
What are the sales tax rates in Canada?
Here is what our GST/HST calculator gives on a $1,000 purchase before tax in five places. We left out provinces where we couldn’t settle the rate from one consistent source. The full list is in the calculator and on the CRA’s rates page.
| Place | Tax charged | Rate | Tax on $1,000 |
|---|---|---|---|
| Ontario | HST | 13% | $130.00 |
| Nova Scotia | HST | 14% | $140.00 |
| Alberta | GST only | 5% | $50.00 |
| British Columbia | GST plus 7% PST | 12% | $120.00 |
| Quebec | GST plus 9.975% QST | 14.975% | $149.75 |
Nova Scotia’s HST fell from 15% to 14% on April 1, 2025. We haven’t confirmed any 2026 change to these rates, so check the CRA table before you invoice.
What isn’t taxed at all?
Some things carry 0% tax and some carry none. The CRA separates zero-rated supplies from exempt ones. Basic groceries and most exports are zero-rated, which means the rate is 0% across Canada. Exempt supplies have no GST/HST applied at all.
For the customer, the two look the same, since no tax is added. For the seller, they aren’t. On zero-rated sales you can still claim input tax credits on what you spent to make them. On exempt sales you generally can’t.
A rate calculator can’t guess which category your item falls in. Ours applies one rate to the whole amount, so treat a result as an upper estimate for zero-rated items.
When does a business have to charge it?
Once revenue passes the small supplier threshold, which is $30,000 for most businesses, you register and start charging. Registering gives you a business number and an RT account, and you can register online.
Here’s a worked example. An Ontario firm sells $10,000 of services and collects $1,300 HST. It also bought $3,000 of supplies, paying $390 of HST on them. It claims that $390 back, so it sends the CRA $910. The maths is only the rate applied twice. Your real return also depends on which purchases qualify.
If you only have the total price, use the HST reverse calculator to pull the tax back out. For Quebec, use the GST and QST calculator, and for the western provinces with a separate PST, the GST and PST calculator. Note that in BC, that tool applies 12% to everything, so it overstates tax on items that carry only GST or none.
Mistakes that cost sellers money
The first is charging the wrong rate. If you ship from Ontario to Alberta, the place of supply rules decide, and using your home rate isn’t safe. The second is treating zero-rated and exempt as the same thing when you claim credits.
And there’s the plain one. Someone sees “VAT” on an old form or a foreign template, and copies the wrong wording onto a Canadian invoice. Use the tax names above and put your registration number on every invoice.
Where the numbers come from
The rates and rules come from the Canada Revenue Agency’s pages on charging and collecting the GST/HST, types of supply and business registration, read in September 2026. The dollar amounts come from our calculators. We could not confirm Quebec’s rate on Revenu Quebec’s own page during checking, so confirm 9.975% there before you rely on it. This site has no tie to any tax authority.
Frequently asked questions
Does Canada have VAT?
No. The federal sales tax is called the GST, and some provinces add or blend in their own tax (HST, PST or QST).
What is the GST rate?
5%. In HST provinces the combined rate is higher, for example 13% in Ontario and 14% in Nova Scotia.
Is food taxed?
Basic groceries are zero-rated, so the rate is 0% across Canada. Other food is a separate question, so check the CRA page for the item.
When do I have to register for GST/HST?
For most businesses, once revenue passes the $30,000 small supplier threshold.
What is the difference between zero-rated and exempt?
Neither adds tax for the customer. A seller can claim input tax credits on costs for zero-rated sales, but generally not for exempt ones.
- GST, HST, PST and QST explained for every province
Which GST, HST, PST or QST applies where you shop or sell in Canada, the 2026 rates for every province, who must register and how to add or remove tax
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.