Canada doesn't have one sales tax — it has several, layered, with rates varying by province. The 5% federal GST applies everywhere, but in Ontario and the Atlantic provinces it's absorbed into a harmonised HST. In BC, Saskatchewan and Manitoba, the federal GST stays separate from a provincial PST. In Quebec, it's GST plus the 9.975% QST, both calculated on the selling price. In 4invoices, you choose the tax rate on each invoice line and the total is calculated from those rates.
Selling across provinces with different rates
As a general rule, the rate depends on the province where the supply is made — for goods, often the province of delivery to the customer — not your business province. A Vancouver business shipping goods to a Toronto customer charges 13% HST (Ontario rate), not 12% (BC GST+PST). In 4invoices, you set on each line the rate that matches the province of supply; choosing the right rate is up to you.
QST is calculated on the price, not on the GST-inclusive amount
Since January 1, 2013, QST is no longer calculated on the GST-inclusive amount. For a $100 sale: $5 GST and $9.975 QST, a total of $114.98 (combined rate 14.975%). Old "cascading" calculations (QST on $105) overstate the tax. In 4invoices, you enter the applicable rate on the line and the invoice shows the corresponding tax amount.
The $30,000 small-supplier threshold
As long as your worldwide taxable supplies stay at $30,000 or less over four consecutive calendar quarters, you're a small supplier and aren't required to collect GST/HST. Once you exceed the threshold, you must register and start collecting tax. 4invoices does not track this threshold for you — monitoring your taxable revenue is up to you or your accountant.
Understanding the mechanics of Canadian taxes
The 5% federal GST is the common layer across all of Canada, administered by the Canada Revenue Agency (CRA). In Quebec, Revenu Québec administers GST on behalf of the CRA for most businesses — which simplifies admin: one tax authority, one GST/QST return. Elsewhere, you file your GST/HST return directly with the CRA, for example online or with form GST34.
The Atlantic provinces (New Brunswick, Nova Scotia, PEI, Newfoundland and Labrador) and Ontario harmonised their provincial tax with federal GST into HST — Harmonised Sales Tax. You file one HST amount (13% Ontario, 14% Nova Scotia since April 1, 2025, 15% in the other three provinces), which the CRA splits between federal and provincial. No separate provincial return.
British Columbia (PST 7%), Saskatchewan (PST 6%) and Manitoba (RST 7%) kept a separate provincial tax. You charge 5% GST plus the provincial tax, and file the provincial tax with the province's tax authority. Alberta, Yukon, Northwest Territories and Nunavut have no provincial sales tax — only federal 5% GST. For businesses in these jurisdictions, it's the simplest tax regime in Canada.
Frequently asked
I'm based in Alberta, I sell across Canada. What rate do I charge?
Generally the rate of the province of supply — often where the customer takes delivery — not yours. To an Albertan customer: 5% GST only. To an Ontario customer: 13% HST. To a Quebec customer: 5% GST, plus 9.975% QST if you're registered for QST. In 4invoices, you set that rate on each invoice line.
I sell to a US customer. GST yes or no?
Exports outside Canada are generally zero-rated — you charge no GST/HST/QST. But you must retain proof of export (international shipping document, air waybill, customs document). In 4invoices, you can issue the invoice at a 0% rate and in the customer's currency, with the exchange rate shown.
What happens if I'm not GST-registered but I exceed $30,000?
You must register and start collecting GST/HST; the date from which tax applies depends on how you exceeded the threshold (a single quarter or four consecutive quarters). If you don't register, the CRA can assess the tax you should have collected, plus penalties and interest. 4invoices does not monitor this threshold — check it regularly with your accountant.
Issue your invoices with the right rate on every line
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