Charge and collect the tax – Which rate to charge (2024)

How place of supply affects GST/HST rates

The rate of tax to charge depends on the place of supply. This is where you make your sale, lease, or other supply.

A zero-rated supply has a 0% GST/HST rate throughout all of Canada. For example, basic groceries are taxable at the rate of zero (0% GST/HST) in every province and territory.

The rate for other taxable supplies depends on the province or territory. The current rates are:

• 5% (GST) in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon
• 13% (HST) in Ontario
• 15% (HST) in New Brunswick, Newfoundland and Labrador, Nova Scotia, and PrinceEdward Island

See previous rates (from January 1, 2008 to September 30, 2016)

For example, your store in Vancouver, B.C. delivers a mattress to your customer in Toronto, Ontario. You charge 13% HST on the sale because the place of supply is Ontario.

For detailed place-of-supply rules, see GST/HST rates and place-of-supply rules. Some supplies of products or services are GST/HST exempt.

To find out if your supply is taxable or exempt, see Type of supply.

If you supply a product or service to someone outside Canada, see GST/HST – Imports and Exports.

How to calculate the GST/HST

If you know your place of supply and type of supply, you can use the GST/HST calculator to calculate the amount of GST/HST to charge. If provincial sales tax (PST) is charged in the place of supply, calculate the GST on the price without the PST.

Whether or not to charge the GST/HST may depend on who the supply is made to. For more information, see:

• GST/HST for digital economy businesses: Overview New
• Governments and diplomats
• Indigenous peoples

Whether or not to charge the GST/HST also may depend on who makes the supply. For more information, see:

• Guide RC4082, GST/HST Information for Charities
• Guide RC4049, GST/HST Information for Municipalities
• Guide RC4081, GST/HST Information for Non-Profit Organizations