What Is the HST?

The harmonized sales tax (HST) replaces the provincial sales tax (PST) and the goods and services tax (GST) in the participating provinces. It applies to the taxable supply of goods and services made in the following provinces:

  • Prince Edward Island
  • New Brunswick
  • Nova Scotia
  • Ontario
  • Newfoundland and Labrador

On April 1, 2013, the following changes took effect in British Columbia and Prince Edward Island:

  • British Columbia, which had combined the GST and PST and implemented the HST on June 1, 2010, abandoned the HST and re-established its PST.
  • Prince Edward Island combined the GST and PST and implemented the HST.

Collecting the HST

The HST applies according to the same rules as those governing the GST. HST rates can vary from one participating province to another.

Businesses registered for the GST are automatically registered for the HST. They must collect and remit the HST on all taxable supplies (except zero-rated supplies) made in a participating province. These supplies include:

  • the sale of tangible personal property
  • the lease of tangible personal property
  • the sale of services

Special rules for the sale of road vehicles

Special rules apply to the sale of road vehicles. If a road vehicle is sold by a GST/HST registrant in a non-participating province (Québec, for example) and then taken to a participating province and the GST has been collected on the vehicle, the purchaser must pay the provincial component of the HST when registering the vehicle in the participating province.

However, if the road vehicle is acquired from a non-GST/HST registrant in a non-participating province and the vehicle is then taken to a participating province, the purchaser must pay the provincial motor vehicle tax when registering the vehicle, and cannot claim an input tax credit (ITC).

Other supplies

Contact the Revenu Québec office nearest you for the rules governing the supply of other property and services in a participating province. Such supplies include:

  • intangible personal property
  • real property and services associated with real property
  • passenger and freight transport services
  • telecommunications services
Last Updated: 2013-04-23