Canadian GST compliance and rates

Canadian GST compliance

The rules surrounding the application of GST in Canada cover a range of areas including:

  • Invoice requirements
  • Foreign currency treatment and rates
  • Which expenses may be recovered against GST liabilities
  • Relief for bad debts
  • Fines and penalties

Canadian GST returns

Businesses GST registered in Canada must submit periodic GST returns.  The frequency depends on the annual turnover of the business:

  • Monthly – over CND6 million
  • Quarterly – CND1.5 million to CND6 million
  • Annually – below CND1.5m

The returns are due by the end of the following calendar month.  The annual return should be filed within three months of the year end.  Filings are electronic only for any business above CAD1.5m per annum.  Any GST or HST is paid by electronic transfer simultaneously to the filing.  There is the provision to pay quarterly installments for businesses on Annual Returns.

Canadian GST, PST and QST rates

Canadian Federal GST is charged at 5%.  This is combined in most Provinces with the local PST, which are set between 5% and 9%, to create a Harmonised Sales Tax (HST) rate.

Canada GST, PST and QST rates

ProvinceTypeRateProvincial sales taxFederal GST
British ColumbiaGST + PST12%7%5%
ManitobaGST + PST12%7%5%
New BrunswickHST15%10% 5%
Northwest TerritoriesGST5%0%5%
Nova ScotiaHST15%10%5%
Prince Edward IslandHST15%10%5%
QuebecGST + QST14.98%9.975%5%
SaskatchewanGST + PST11%6%5%
AllZero0%GST zero rated for exports and associated services; some financial services; food and agriculture; medical goods and services