What Are the Key Differences Between GST and HST in Canada?

Learn the difference between GST and HST in Canada, including where each tax applies and how they combine federal and provincial taxes.

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GST (Goods and Services Tax) is a federal tax applied across Canada, while HST (Harmonized Sales Tax) combines the GST with a provincial sales tax. The HST is used in provinces like Ontario and Nova Scotia. Essentially, GST is nationwide, while HST is region-specific, integrating both federal and provincial taxes.

FAQs & Answers

  1. What provinces in Canada use HST instead of GST? Provinces like Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island use the Harmonized Sales Tax (HST), which combines the federal GST with the provincial sales tax.
  2. Is GST applied across all of Canada? Yes, the Goods and Services Tax (GST) is a federal tax that applies uniformly across all Canadian provinces and territories.
  3. How does HST differ from GST? HST combines the federal GST with provincial sales tax into a single tax collected by the federal government, whereas GST is only the federal portion applied nationwide.

Watch More

For more insights into Canadian taxes and how they affect consumers and businesses, check out our videos on provincial sales tax rates and how to file GST/HST returns effectively.

  1. How Much is GST in Canada? Understanding Federal and Provincial Sales Taxes Learn about Canada's 5% GST, plus provincial PST and HST rates like Ontario's 13% and BC's 12% combined taxes.
  2. Is There GST or VAT in Canada? Understanding Canadian Sales Taxes Learn about GST, PST, and HST in Canada and how these sales taxes apply across provinces.
  3. What Is the Biggest Tax in Canada? Understanding GST and HST Explained Discover the biggest tax in Canada: the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) impacting consumer spending and government revenue.