Goods and Services Tax

In Canada, the goods and services tax or GST is a federal tax of five percent on most goods and services sold in Canada for domestic consumption. Some goods and services are exempt from the GST, for example, basic groceries, prescription drugs, and exports.

In the provinces of Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario and Prince Edward Island, the harmonized sales tax (HST) replaces both the federal GST and the provincial sales tax and is applied on the same basis as the GST.

Note: On April 1, 2013, the province of British Columbia dropped the HST and went back to the two-tax system of GST and provincial sales tax.

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Munroe, Susan. "Goods and Services Tax." ThoughtCo, Feb. 6, 2017, thoughtco.com/goods-and-services-tax-510741. Munroe, Susan. (2017, February 6). Goods and Services Tax. Retrieved from https://www.thoughtco.com/goods-and-services-tax-510741 Munroe, Susan. "Goods and Services Tax." ThoughtCo. https://www.thoughtco.com/goods-and-services-tax-510741 (accessed December 17, 2017).