In Canada, three types of sales taxes are levied. These are as follows:
- Provincial sales taxes (PST), levied by the provinces
- Goods and Services Tax (GST), a value-added tax levied by the federal government
- The combined Harmonized Sales Tax (HST), also a value-added tax, a single, blended combination of the PST and GST which is used in Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. British Columbia adopted HST between 2010 and 2013, but eventually abolished the system after a province-wide referendum. The HST is collected by the Canada Revenue Agency, which then remits the appropriate amounts to the participating provinces.
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 heavily subsidized by the federal government, and its residents receive some additional tax concessions due to the high cost of living in the north.
Video Sales taxes in Canada
Provincial sales taxes
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 2010 was rejected in a referendum. 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 Prince Edward Island, PST was applied to the combined cost and GST). Of the provincial sales taxes, only the QST (and the HST) are value-added; the rest are cascading taxes.
Maps Sales taxes in Canada
References
Further reading
- 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
- 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
Source of article : Wikipedia
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