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:

British Columbia
New Brunswick
Nova Scotia
Ontario
Newfoundland and Labrador

Note

As of July 1, 2010, sales tax collected in Ontario and British Columbia will be combined with the GST and converted into HST.

For more information, go to Reform of the Provincial Sales Tax Administration in Ontario and British Columbia.

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: