Sales taxes in Canada

Type of taxation in Canada

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Taxation
An aspect of fiscal policy

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Economics

|  General Theory

* Price effect
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* Theories
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Distribution of Tax

* Tax rate
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Collection

* Revenue service
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Noncompliance

|  Legal tax avoidance

* Base erosion and profit shifting (BEPS)
* Double Irish
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* Taxpayer groups
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Illegal tax evasion

* Tax amnesty
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* Debtors' prison
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* Smuggling
* Tax resistance
* Transfer mispricing
* Unreported employment

Locations

* Tax havens
* Corporate havens
* Offshore financial centres (OFCs)
* Offshore magic circle
* Conduit and sink OFCs
* Financial centres
* Financial Secrecy Index

Major examples

* Ireland as a tax haven
* Ireland v. Commission
* Leprechaun economics
* Liechtenstein tax affair
* Luxembourg Leaks
* Offshore Leaks
* Paradise Papers
* Panama Papers
* Swiss Leaks
* United States as a tax haven
* Panama as a tax haven

Types

* Direct
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* Per unit
* Ad valorem
* Aviation
* Airport improvement
* Landing
* Solidarity
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* Expatriation
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* Departure
* Hotel
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* Television
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* Road/GNSS
* Toll
* Vehicle miles traveled
* Corporate profit
* Excess profits
* Windfall
* Negative (income)
* Wealth

International

* Financial transaction tax
* ATTAC
* Currency transaction tax
* European Union Common Consolidated Corporate Tax Base (CCCTB)
* Global minimum corporate tax rate
* Robin Hood tax
* Tobin tax
* Spahn tax
* Tax equalization
* Tax treaty
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* Permanent establishment
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* European Union FTT
* Foreign revenue rule

Trade

* Custom
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* Import
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* Tariff war
* Free trade
* Free-trade zone
* Trade agreement
* ATA Carnet

Research

|  Academic

* Mihir A. Desai
* Dhammika Dharmapala
* James R. Hines Jr.
* Ronen Palan
* Joel Slemrod
* Gabriel Zucman

Advocacy groups

* Institute on Taxation and Economic Policy (ITEP)
* Oxfam (UK)
* Tax Foundation (US)
* Tax Justice Network (TJN)
* Tax Policy Center (US)

Religious

* Church tax
* Eight per thousand
* Teind
* Tithe
* Fiscus Judaicus
* Leibzoll
* Temple tax
* Tolerance tax
* Jizya
* Kharaj
* Khums
* Nisab
* Zakat

By country

|  All Countries

* List of countries by tax rates
* Tax revenue to GDP ratio
* Tax rates in Europe

Individual Countries

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* United Kingdom
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* Uruguay

* Business portal
* Money portal

* v
* t
* e

In Canada, there are two types of sales taxes levied. These are :

* Provincial sales taxes or PST (French: Taxes de vente provinciale - TVP), levied by the provinces.
* Goods and services tax or GST (French: Taxe sur les produits et services - TPS) / Harmonized sales tax or HST (French: Taxe de vente harmonisée - TVH), a value-added tax levied by the federal government. The GST applies nationally. The HST includes the provincial portion of the sales tax but is administered by the Canada Revenue Agency (CRA) and is applied under the same legislation as the GST. The HST is in effect in Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island.

Every province except Alberta has implemented either a provincial sales tax or the Harmonized Sales Tax. The federal GST rate is 5 percent, effective January 1, 2008.

The territories of Yukon, Northwest Territories, and Nunavut have no territorial sales taxes, so only the GST is collected. The three northern jurisdictions are partially subsidized by the federal government, and their residents receive some additional tax concessions due to the high cost of living in the north.

## Provincial sales taxes

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Separate provincial sales taxes (PST) are collected in the provinces of British Columbia, Saskatchewan, Manitoba (retail sales tax or RST) and Quebec (Quebec sales tax or QST, French: Taxe de vente du Québec or TVQ). Prince Edward Island switched to a HST on April 1, 2013, the same date that British Columbia reverted to a separate GST/PST after their adoption of a HST in 2000 was rejected in a referendum.[1] Goods to which the tax is applied vary by province, as does the rate. In all provinces where the provincial sales tax is collected, the tax is imposed on the sale price without GST (in the past, in Quebec and in Prince Edward Island, PST was applied to the combined sum of sale price and GST). Of the provincial sales taxes, only the QST is a value-added tax.

Province  | Type  | Prov. rate (%)  | Total tax rate (%)  | Notes

|
|
|
|

Alberta | GST | 0 | 5  | There is a 9% tax on lodging and 4% tax on hotel room fees.
British Columbia | GST + PST | 7 | 12  |

Main article: Sales taxes in British Columbia

Reverted to a separate GST/PST on April 1, 2013, with a PST of 7%, after their adoption of a HST in 2010 was rejected in a referendum.[1]
Manitoba | GST + RST | 7  | 12[2] | The RST was increased one point to 8% on July 1, 2013. It reverted to 7% as of July 1, 2019 and although it was planned to drop to 6% as of July 1, 2020[3][4] due to the COVID-19 pandemic the province has deferred the reduction until further notice.[5]
There is a 5% tax on lodging and 5% tax on hotel room fees.
New Brunswick | HST | 10 | 15  | The HST was increased two points to 10% with an overall tax of 15% on July 1, 2016.[6]
Newfoundland and Labrador | HST | 10  | 15  | The HST was increased two points to 10% with an overall tax of 15% on July 1, 2016.[7]
Northwest Territories | GST | 0 | 5  |
Nova Scotia | HST | 10 | 15[8] | Rates were meant to be reduced to 14 and 13% on July 1, 2014 and July 1, 2015 respectively. However, the government has stated that the province cannot afford reductions.[9]
Nunavut | GST | 0 | 5  |
Ontario | HST | 8 | 13  |
Prince Edward Island | HST | 10 | 15[10] | The HST was increased one point to 15% on October 1, 2016.[1]
Quebec | GST + QST | 9.975[11] | 14.975[12] | Books are taxed at 5.0% (considered essential goods for QST but not for GST). There is an additional tax on tourist lodgings such as hotels which is usually 3.5%. This tax does not apply in Nunavik.[13][14]
Saskatchewan | GST + PST  | 6 | 11  | The 6% rate is effective for goods and services effective March 23, 2017.[15] Effective April 1, 2017, New Homes, restaurant meals and other prepared food and beverages are subject to PST.[16] There is a separate 10% liquor consumption tax. PST is not applicable for any exempt business in Lloydminster.
Yukon | GST | 0 | 5  |

## New housing rebate

[edit]

Sales taxes on new or significantly renovated housing used as a primary residence may be eligible to have a portion of charged federal and provincial sales taxes rebated. New homes valued up to $450,000 may be eligible for a 36% rebate on GST charged up to a maximum of $6,300.[17] Provincial sales tax rebate programs on new housing are offered in Ontario, British Columbia, Nova Scotia, Saskatchewan, and Quebec (for QST). Terms and conditions vary by province.

## References

[edit]

1. ^ a b c "P.E.I. budget announces increase in HST". CBC News. April 19, 2016. Retrieved May 1, 2016.
2. ^ "Retail Sales Tax". Manitoba Finance. Manitoba Ministry of Finance. 2013. Retrieved July 3, 2013.
3. ^ Siragusa, Austin. "Manitoba provincial sales tax rate drops to 7% on Canada Day". Global News. Retrieved July 8, 2019.
4. ^ Froese, Ian. "Pallister Government to cut PST by 1 percentage point using revenues from its own carbon tax". CBC Manitoba. Retrieved March 5, 2020.
5. ^ "Information Bulletin 120" (PDF). Retrieved September 17, 2020.
6. ^ "Harmonized Sales Tax (HST) - Finance". February 11, 2013.
7. ^ "Harmonized Sales Tax". July 22, 2019.
8. ^ "HST hike highlights N.S. budget". CBC News. April 6, 2010. Retrieved April 6, 2010.
9. ^ "Nova Scotia books in no shape for legislated cut to HST: finance minister | News957". www.news957.com. Archived from the original on February 1, 2014.
10. ^ Public Treasury, Prince Edward Island Department of (January 7, 2008). "Tax and Land Information Website: Revenue Tax (PST)". Retrieved September 26, 2009.
11. ^ As of January 1, 2013, Quebec officially changed the QST rate to 9.975. Previously, it had a nominal rate of 9.5 (Quebec raised the QST from 7.5 to 8.5 on Jan 1 2011, and then from 8.5 to 9.5 on Jan 1 2012), but the QST was applied to the combined sum of sale price and GST, making the effective QST rate 9.975. As of January 1, 2013, the rate no longer applies to the combined sum of sale price and GST, and is simply 9.975.
12. ^ "QST and GST/HST". Revenu Quebec. Retrieved January 3, 2013.
13. ^ "Revenu Québec - Calculating and Collecting the Tax on Lodging".
14. ^ "Revenu Québec - Establishments Subject to the Tax on Lodging".
15. ^ "IN 2017-01 PST Transitional Rules" (PDF). SK PST. Retrieved March 24, 2017.
16. ^ "Restaurants, Caterers and Other Businesses Selling Prepared Food and Beverage" (PDF). Saskatchewan Ministry of Finance. March 22, 2017. Retrieved March 23, 2017.
17. ^ Agency, Canada Revenue (June 22, 2017). "GST/HST New Housing Rebate". aem. Retrieved June 30, 2020.

## Further reading

[edit]

* Bird, R. M. (2012). The GST/HST: Creating an Integrated Sales Tax in a Federal Country. Rotman School of Management Working Paper, (2115620).

## External links

[edit]

* Canada portal

* GST/HST rates table at the Canada Revenue Agency
* Government of British Columbia: Sales Taxes
* Revenu Quebec website
* Revenu Québec (General Information Concerning the QST and the GST/HST

* v
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Sales taxes in North America

Sovereign states|

* Antigua and Barbuda
* Bahamas
* Barbados
* Belize
* Canada
* Costa Rica
* Cuba
* Dominica
* Dominican Republic
* El Salvador
* Grenada
* Guatemala
* Haiti
* Honduras
* Jamaica
* Mexico
* Nicaragua
* Panama
* Saint Kitts and Nevis
* Saint Lucia
* Saint Vincent and the Grenadines
* Trinidad and Tobago
* United States

Dependencies and
other territories

* Anguilla
* Aruba
* Bermuda
* Bonaire
* British Virgin Islands
* Cayman Islands
* Curaçao
* Greenland
* Guadeloupe
* Martinique
* Montserrat
* Puerto Rico
* Saint Barthélemy
* Saint Martin
* Saint Pierre and Miquelon
* Saba
* Sint Eustatius
* Sint Maarten
* Turks and Caicos Islands
* United States Virgin Islands

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