What is GST / HST?

GST (Goods and Services Tax) is a 5% federal value-added tax. HST (Harmonized Sales Tax) combines GST with provincial sales tax in five provinces (Ontario, NB, NL, NS, PEI). Other provinces charge GST plus a separate provincial sales tax (PST or QST).

2026 rates

• GST only (AB, BC, MB, NT, NU, SK, YT): 5%
• HST: ON 13%, NB/NL/NS/PEI 15%
• Quebec: 5% GST + 9.975% QST = 14.975% combined
• Manitoba: 5% GST + 7% PST
• Saskatchewan: 5% GST + 6% PST
• British Columbia: 5% GST + 7% PST

Registration

Mandatory registration once revenue exceeds $30,000 in any 4-quarter period. Voluntary registration before that lets you claim Input Tax Credits (ITCs) on business expenses.

ITCs (Input Tax Credits)

Registered businesses can recover the GST/HST paid on business inputs. This is often where small businesses leave money on the table — ITCs on home office expenses, vehicle costs, and software subscriptions are routinely under-claimed.

Quick-method election

For service businesses with <$400K revenue, the GST/HST quick method can simplify reporting and often reduce remittance compared to the full ITC method. Worth running both calculations annually.

Related terms