GST, HST and sales tax: questions answered

Alberta charges no provincial sales tax and does not use the HST. Only the federal GST applies to taxable sales made in Alberta, and the CRA administers it. So an Alberta business charges the federal tax alone on local sales, while a sale delivered into another province may carry that province's HST or provincial tax under the place-of-supply rules. Zero-rated and exempt supplies work the same way as everywhere else in Canada.

Corrective eyeglasses and contact lenses supplied on the prescription or written order of an eye-care professional are zero-rated, so GST/HST applies at 0% and nothing is added at the counter. Non-prescription readers, sunglasses and frames sold without prescription lenses are taxable at the usual rate. Zero-rated beats exempt for the dispenser, because input tax credits on rent, equipment and inventory stay claimable. The CRA's medical devices guidance lists which eyewear, parts and repairs qualify.

Basic groceries, prescription drugs, most medical and assistive devices, and exports are zero-rated, so no GST/HST is charged while the seller can still claim input tax credits. Exempt supplies carry no tax either: residential rent, most health, dental and education services, childcare, and many financial services. Some provinces also carve items out of their own PST or the provincial part of HST, such as children's clothing or books, so shelf prices differ by province.

Yes. A domestic air ticket is taxable, and the rate follows the province the flight departs from, so leaving Toronto means 13% HST and leaving Calgary means 5% GST. Airport improvement fees, seat selection and baggage charges are taxable on the same basis, and tax is also calculated on the Air Travellers Security Charge. Every Canadian carrier applies this the same way, so the tax lines on an Air Canada or WestJet fare should match.

Ontario's 13% is one tax made of two parts: the 5% federal GST plus the province's own share. It looks steep next to Alberta, which charges GST alone, and the harmonised base is broader than the old provincial sales tax, so services that were once untaxed now carry the full rate. Registered businesses recover the HST they pay through input tax credits, which is why the real cost lands on final consumers.

Once you are required to be registered. For 2026 that is when taxable revenue passes the $30,000 small-supplier threshold, tested either over four consecutive calendar quarters or within a single quarter. On the four-quarter test you stay a small supplier to the end of the following month, then register and charge from that point. On the single-quarter test status ends on the sale that crosses the threshold, and HST applies to that sale. Ontario is harmonised, so one combined rate and one return cover it.

Montreal follows Quebec's rates: GST at 5% plus QST at 9.975%, a combined 14.975% on most goods and services. QST is calculated on the pre-GST price, so the two taxes are not compounded. Some items are zero-rated or exempt, such as basic groceries and most residential rent. Quebec administers QST itself through Revenu Quebec, so a business selling there usually registers for both GST/HST and QST.

Most goods and services in Quebec carry GST at 5% plus QST at 9.975%, a combined 14.975%, with QST applied to the pre-GST price. Basic groceries, prescription drugs and many medical devices are zero-rated, while residential rent, most health and education services and certain financial services are exempt. On income, Quebec residents file a federal T1 and a separate provincial return with Revenu Quebec, so the provincial side is administered separately from the rest of Canada.

The buyer pays it and the seller collects it. British Columbia's PST is 7% on most goods and some services, charged on top of the 5% GST, and the province administers it rather than the CRA. Sellers with taxable sales into British Columbia generally have to register and remit, including businesses located outside the province. Several categories are exempt, so check the province's PST bulletins for the goods or services you sell.