We recommend all the businesses operating in Canada to read this article and get detailed information on Provincial Sales Taxes. Here, you will get to know in detail about PST Canada: What is PST and How Much is PST in BC, NS, NB, Ontario, Alberta, Quebec?
PST Canada
In Canada, PST, GST, and HST are the three different forms of sales taxes. Provinces impose sales taxes (PST) on their citizens. All provinces, with the exception of Alberta, have imposed a provincial sales tax or the Harmonized Sales Tax.
In addition to the five percent GST, four provinces also impose separate provincial sales taxes. You might also need to register for PST, depending on which provinces you sell your goods in. Every province in which you conduct business will be involved in this.
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We recommend reading this article, to get comprehensive details on PST Canada tax regime administered in various province of the country. Here, we are going to discuss in-detail about Provincial tax, its tax rates and other important details regarding it.
What is PST?
The province sales tax, which is distinct from the goods and services tax (GST), is explicitly collected inside a province. Because certain provinces declined to take part in the HST program, they will now need to collect and remit PST and GST individually.
Both the rate and the goods to which the tax is levied differ by province. British Columbia, Saskatchewan, Manitoba (known as retail sales tax, or RST), and Quebec all have their own separate provincial sales taxes (PST) that are collected. The provincial sales tax is levied on the sale price only in all provinces where it is collected. GST is not included in this tax.
PST Canada Overview
| Article Name | PST Canada |
| Concerned Country | Canada |
| Tax Name | Provincial Sales tax |
| Administered in | British Columbaia
Manitoba Saskatchewan Quebec |
| PST Rates | 6%, 7% and 9.975% |
| Certified Handle | Canada.ca |
Who pays PST?
Any business owner operating in a province with a PST is required to impose, collect, and forward the provincial sales tax on the relevant goods and services. Generally speaking, unless the products are being bought for resale or a specific exception is applicable, buyers must pay PST at the time of purchase.
When you buy or rent taxable goods from your provider, PST is typically charged. You have to determine the PST owed on your own if your supplier does not charge you. Province merchants must typically register in order to collect and submit the PST to the relevant provincial government, even though the PST is levied on the buyer.
When imports of non-commercial taxable products are also subject to GST, the federal government is required by the PST collection agreements to collect PST from the importers. When it comes to PST, those who are not covered by the collection agreements (most firms) need to make sure they self-assess PST correctly.
How Much is PST in BC, Saskatchewan, Manitoba, and Quebec?
PST is applicable in British Columbia, Manitoba, Quebec, and Saskatchewan, albeit to differing degrees. Depending on the good or service being taxed, provincial sales taxes differ throughout jurisdictions.
In addition to providing links to the provincial (or federal) websites pertaining to provincial retail sales taxes, the following table displays the general rates of provincial sales taxes or HST for the majority of purchases.
| Provinces | PST rate | Official Website |
| BC | 7% | https://www2.gov.bc.ca/gov/content/taxes/sales-taxes |
| Saskatchewan | 6% | https://www.saskatchewan.ca/business/taxes-licensing-and-reporting/provincial-taxes-policies-and-bulletins/provincial-sales-tax |
| Manitoba | 7% | https://www.gov.mb.ca/finance/taxation/taxes/retail.html |
| Quebec | 9.975% | https://www.revenuquebec.ca/en/businesses/consumption-taxes/gsthst-and-qst/basic-rules-for-applying-the-gsthst-and-qst/tables-of-gst-and-qst-rates/ |
This graphic can be used to quickly review the tax requirements throughout all Canadian provinces.
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FAQs
What goods are eligible for PST exemption?
You should check with your province or the CRA as PST-exempt goods can differ between jurisdictions. PST-exempt items frequently include food for human consumption (such as basic groceries and prepared foods like meals from restaurants), books, newspapers, magazines, child-sized apparel,
My invoice has a blank PST ID area; why is that?
Only customers who are exempt from paying taxes will have value in the PST ID field. You can ignore this part if you are not a tax-exempt customer.
Where can I sign up for PST?
In Canada, you must register your company with your province and, if necessary, open a GST account with CRA or with your provincial government’s website. When you register your firm for GST, it automatically becomes registered for PST as well. Small vendors who make less than $30,000 in total are exempt from registration requirements.
We feel extremely fortunate, that we were able to provide you with the details on Provincial taxes regime in-place in Canada.