Goods and Services taxes for Canada and Quebec

Remitting and applying for a refund for the GST, or PST:

There are three types of goods and services taxes in Canada:

  • Provincial Sales Tax (PST) collected by the provinces
  • Federal Goods and Services taxes (GST)
  • Harmonized Sales Tax (HST), a combination of the PST and GST, collected by the Federal government in the applicable provinces

In Quebec, the provincial and federal taxes are separate and are collected by the province. This is an exception to the rule in other provinces. Alberta is another exception; they collect only the GST as they have no provincial sales tax.

Companies have to apply for a GST and PST registration number so that they can remit the tax collected, or receive refunds.

Most businesses are required to register and collect these taxes, with the exception of companies dealing with zero-rated goods and services, and companies who have a total taxable income before expenses that is less than $30,000.00 for the last four quarters of business.

Entering the sales tax data and calculating collected taxes vs. allowable deductions for GST/PST paid out, is a time consuming endeavor. Whether you are part of a corporate entity or operating a small business, you need to use your time in a productive way.

Taking advantage of the ATS bookkeeping and tax services is an excellent decision for any business owner, especially when dealing with federal and provincial sales taxes.

The federal government dropped the GST to 5%, and Quebec stepped up to the base to make sure none of that trickled down to the consumer. The Provincial tax was upped to 7.5%