Reform of the Provincial Sales Tax Administration in Ontario and British Columbia

Under a measure that became effective on July 1, 2010, the sales taxes collected in Ontario and British Columbia have each been combined with the GST and converted into a harmonized sales tax (HST). To simplify its administration, the HST is generally applied to the same tax base and according to the same rules as the GST.

All companies doing business in Ontario or British Columbia are subject to the new measures. Québec companies that buy and sell products and services in these two provinces are therefore subject to these measures.

HST applicable in Ontario

The HST rate is 13%, which breaks down as follows:

• 5% federal portion (GST)
• 8% provincial portion

HST applicable in British Columbia

The HST rate is 12%, which breaks down as follows:

• 5% federal portion (GST)
• 7% provincial portion