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ARTICLE · 25 MARCH 2021

Sales And Other Taxes II

McCarthy Tétrault
McCarthy Tétrault
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McCarthy Tétrault

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Five provinces currently have harmonized their provincial sales taxes with the GST: Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador and Prince Edward Island.

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Harmonized Sales Tax

See Chinese version below [中文版参阅下文]

Five provinces currently have harmonized their provincial sales taxes with the GST: Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador and Prince Edward Island. In those provinces, the Harmonized Sales Tax (HST), made up of the federal 5% GST component and a provincial component that varies from 8% to 10%, applies on the same basis as the GST. Accordingly, the discussion above regarding the GST also generally applies to the HST. It should be noted, however, that Prince Edward Island has implemented temporary restrictions on the ability of certain large businesses to claim input tax credits with respect to the provincial component of the HST on certain specified supplies, until March 31, 2021.

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