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:

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

The HST generally follows the same rules as the GST, but HST rates 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 if they make taxable sales (except zero-rated sales) in a participating province.

The place of supply rules apply for the purpose of determining whether or not a sale is considered made in a participating province. Québec registrants that do business in the participating provinces must take these rules into account in deciding whether they must collect the GST or the HST on sales made in these provinces.

The rules for determining the place of supply are the same as the rules used to determine whether a transaction occurs in Québec. For more information, refer to GST/HST technical information bulletin B-103, Harmonized Sales Tax – Place of supply rules for determining whether a supply is made in a province, published by the Canada Revenue Agency on the Government of Canada website.