GST/HST (Canada)
GST/HST is Canada's value-added consumption tax. The federal Goods and Services Tax (GST) applies across the country (at 5%), and in several provinces it is combined with the provincial sales tax into a single Harmonized Sales Tax (HST) at a higher combined rate (e.g. 13% or 15%). Other provinces levy a separate provincial sales tax (PST) or, in Quebec, the QST.
On imports, GST (or the federal portion of HST) is collected by the CBSA at the border, along with any customs duty; registered businesses can generally recover it as an input tax credit, making GST/HST broadly neutral for business (like a VAT) but a real cost to final consumers. For companies importing into, selling in or operating across Canada, correctly determining GST/HST (and provincial taxes) by province, rate and registration, and accounting for import GST, is a core tax-compliance requirement that ERP and customs systems must handle. Understanding Canada's layered GST/HST/PST system is essential to pricing and compliance in the Canadian market. It is central to how consumption is taxed in Canada.
Canada's consumption tax is layered — federal GST, harmonized HST in some provinces, separate PST/QST in others — and import GST is collected at the border by CBSA. Getting the right rate by province and recovering import GST correctly is a core compliance and pricing task for anyone selling into or operating across Canada, and a real complexity for ERP systems.
What is the difference between GST and HST?
GST is the 5% federal tax nationwide; HST is GST combined with provincial sales tax into one higher rate in provinces that have harmonized (e.g. 13%/15%).
How is GST handled on imports?
The CBSA collects GST (or the federal portion of HST) at the border with any duty; registered businesses can usually recover it as an input tax credit.