GST vs HST vs PST vs QST — what's the difference?

GST (Goods and Services Tax) is the 5% federal sales tax that applies to almost every taxable supply in Canada. It's collected by the CRA and remitted by businesses. Every province has GST in some form — either standalone, combined into HST, or layered with a provincial tax.

HST (Harmonized Sales Tax) is what happens when a province blends its sales tax with the federal GST into a single number. Five provinces use HST: Ontario at 13%, and New Brunswick, Newfoundland & Labrador, Nova Scotia, and PEI at 15%. For consumers, HST looks identical to PST — one line on the receipt. For businesses, it's much simpler: one return instead of two.

PST (Provincial Sales Tax) is a separate provincial layer. British Columbia (7%), Manitoba (7%), and Saskatchewan (6%) charge PST in addition to the 5% GST. The two taxes appear separately on receipts and are remitted to different governments.

QST (Quebec Sales Tax) is Quebec's version. It works like PST but is administered by Revenu Québec, not the CRA. The QST rate is 9.975%, applied to the pre-GST price (it doesn't compound on GST), giving a combined effective rate of 14.975%.

For a deep dive into how this layers with your income tax, try our income tax calculator or compare overall tax burden across provinces with the province comparison tool.

Place of supply rules — which province's tax applies?

The rule of thumb is: tax is charged based on where the customer takes delivery, not where the seller is located. If a Quebec store ships goods to an Ontario address, the customer pays Ontario HST (13%) — not Quebec QST. For digital goods and services the rules get trickier, but the general principle still holds: it's the buyer's location that decides the rate.

This is why Amazon, Apple, and other big retailers ask you to confirm your shipping or billing address before showing the final price. They're applying the right province's tax automatically.

When businesses must register for GST/HST

Once your worldwide taxable revenue passes $30,000 in any single calendar quarter, or in four consecutive quarters combined, you must register with the CRA within 30 days. Below that threshold you're considered a 'small supplier' and registration is voluntary — but voluntary registration is often a smart move because it lets you claim Input Tax Credits (ITCs) on your own purchases.

Most freelancers and side-business owners hit the $30K threshold within their first year or two and are surprised by the registration requirement. If you're tracking income closely, see our 2026 CRA payment dates guide for instalment schedules and remittance deadlines.