Updated Checked by the Tax-Services.ca editorial team How we check
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’s 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 page on which rate to charge.
| 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, and the CRA’s page reflects the lower rate. No 2026 change to these rates turned up, but 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.
A zero-rated supply has a 0% GST/HST rate throughout all of Canada.
Which rate to charge, canada.ca
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 your revenue passes the small supplier limit of $30,000, you register and start charging. The CRA’s guide for registrants counts that in a single calendar quarter, and you have 29 days from the sale that pushed you over to register. Registering gives you a business number and an RT account, and you can do it online.
Say Marie in Hamilton sells handmade furniture and has a big summer: a $12,000 commission lands in July, and with her other sales she’s over the limit that quarter. From the day of that sale she has to charge HST, and she has 29 days to register. Waiting until she “feels” like a real business is how people end up owing tax they never collected.
Here’s a worked example for a registered business. 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.
How we checked the figures
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, plus its general information guide for registrants, read in October 2026. The dollar amounts come from our calculators. We couldn’t open Revenu Quebec‘s 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