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VAT in England is 20% on most goods and services, the same as everywhere in the UK, and Canada has nothing called VAT. The Canadian version is GST or HST, which starts at 5% and reaches 15% in some provinces once a provincial part is added. If you’re moving between the two, or selling across the border, this page lines them up.
What is the VAT rate in England?
GOV.UK lists three rates. Most things you buy carry the standard 20%. Some, like children’s car seats and home energy, carry a reduced 5%. Others, like most food and children’s clothes, are zero-rated. Some items, such as postage stamps and financial and property deals, are exempt from VAT altogether. England doesn’t set its own rate. These are the UK’s.
| UK rate | Examples on GOV.UK |
|---|---|
| 20% standard | Most goods and services |
| 5% reduced | Children’s car seats, home energy |
| 0% zero rate | Most food, children’s clothes |
| Exempt | Postage stamps, financial and property transactions |
How does VAT compare with GST and HST?
The idea is the same. A business charges tax on its sales, subtracts the tax it paid on its purchases, and sends the difference to the tax office. The consumer pays in the end. The difference is that Canada has two layers. The federal GST is 5% across the country, and then each province either joins it into an HST or adds its own tax on top.
| Place | Combined rate | How it’s built |
|---|---|---|
| UK | 20% | One national VAT |
| Ontario | 13% | HST |
| Nova Scotia | 14% | HST |
| New Brunswick, Newfoundland and Labrador, PEI | 15% | HST |
| Saskatchewan | 11% | 5% GST plus 6% PST |
| Alberta and the territories | 5% | GST only |
Quebec, British Columbia and Manitoba also add a separate provincial tax. The GST and QST calculator covers Quebec, where the provincial part is 9.975%. Manitoba’s 7% and Quebec’s rate are the two we couldn’t double check on a provincial page, so confirm them before you invoice anyone.
What does the same price look like in each place?
Say a bill comes to 120 in UK currency with VAT included. Divide by 1.2 and you get 100 before tax and 20 of VAT. A Canadian checks the same way: a total of $120 in Ontario holds $106.19 before tax and $13.80 of HST, and in Alberta $114.29 before tax and $5.71 of GST (our engine). Same total, very different tax inside it.
That’s why a rate is never enough on its own. You need to know whether the price you’re looking at includes tax. Canadian shelf prices usually don’t, so the tag says $100 and the till says $113. The reverse HST calculator strips the tax back out of a total. To add tax in a province with a separate PST, use the GST and PST calculator, but note that for BC it taxes everything at 12%, so restaurant meals come out too high.
When does a business need to register for VAT?
In the UK, GOV.UK says you must register when your taxable turnover for the last 12 months goes over £90,000. You also register if you expect to pass it in the next 30 days. You then have 30 days from the end of the month you crossed the line.
The Canadian rule has a similar shape, with a small-supplier limit, but we couldn’t confirm the current figure on an official page, so we’re not printing it. Check the CRA’s GST/HST pages for the registration rule before you sell in Canada.
What mistakes come up with VAT and GST?
Mixing up the two is the obvious one. Charging 20% on a Canadian sale, or 13% on a UK one, is wrong in both directions. Another is treating zero-rated and exempt as the same thing. They’re listed separately on GOV.UK, so read its VAT notice for what each means for the tax you can claim back.
Also watch the currency. A UK price in pounds and a Canadian price in dollars can’t be compared until you convert them, and this page doesn’t use an exchange rate.
Where the numbers come from
UK VAT rates and the £90,000 registration threshold come from GOV.UK pages on VAT rates and on registering for VAT. The Canadian GST and HST rates come from the CRA’s rate table as recorded in our own data files, and the Saskatchewan PST from the provincial government’s page. The example totals come from the sales tax engine on this site.
Frequently asked questions
What is the VAT rate in England?
20% on most goods and services. GOV.UK also lists a 5% reduced rate and a 0% zero rate.
Does Canada have VAT?
Not under that name. Canada uses GST, HST and, in some provinces, a separate PST or QST.
When do you have to register for VAT in the UK?
When taxable turnover for the last 12 months goes over £90,000, or you expect it to within 30 days.
What is the difference between zero-rated and exempt?
Zero-rated goods carry 0% VAT. Exempt items, like postage stamps, are outside VAT. Check the GOV.UK notice for what that means for your costs.
How do I take tax out of a price with tax included?
Divide by one plus the rate. For 20% VAT, divide by 1.2. For Ontario's 13% HST, divide by 1.13.
- 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.