GST, HST and QST: A complete guide for Canadian businesses
Canada has three different sales taxes: the Goods and Services Tax (GST), the Harmonized Sales Tax (HST), and the Quebec Sales Tax (QST). Understanding which applies to your business, how to calculate them, and when to file is essential for compliance with the Canada Revenue Agency (CRA) and Revenu Québec.
What is the GST?
The GST is a federal tax of 5% that applies to most goods and services sold in Canada. It is charged in every province and territory. If your business has annual revenue over $30,000, you must register for and charge GST.
What is the HST?
The HST is a harmonized tax that combines the federal GST and a provincial tax into a single rate. It is used in five provinces: Ontario (13%), New Brunswick (15%), Newfoundland and Labrador (15%), Nova Scotia (15%), and Prince Edward Island (14%). In HST provinces, you charge HST instead of GST — there is no separate GST.
What is the QST?
The QST is a provincial tax of 9.975% charged in Quebec on top of the 5% GST. Combined, the total sales tax rate in Quebec is 14.975%. Quebec businesses must file two separate returns: a GST/HST return with the CRA and a QST return with Revenu Québec.
Sales tax rates by province (2026)
| Province | GST | HST | QST | Total |
|---|---|---|---|---|
| Alberta | 5% | — | — | 5% |
| British Columbia | 5% | — | — | 5% |
| Manitoba | 5% | — | — | 5% |
| New Brunswick | — | 15% | — | 15% |
| Newfoundland & Labrador | — | 15% | — | 15% |
| Nova Scotia | — | 15% | — | 15% |
| Ontario | — | 13% | — | 13% |
| PEI | — | 14% | — | 14% |
| Quebec | 5% | — | 9.975% | 14.975% |
| Saskatchewan | 5% | — | — | 5% |
How to calculate GST/HST/QST
To calculate sales tax, multiply the pre-tax amount by the applicable rate. For example, on a $100 sale in Ontario: $100 × 13% = $13 HST, total $113. In Quebec: $100 × 5% = $5 GST, plus $100 × 9.975% = $9.98 QST, total $114.98.
To extract tax from a tax-inclusive total, divide by (1 + rate). For example, $113 in Ontario: $113 ÷ 1.13 = $100 pre-tax, $13 HST.
When to file
Filing frequency depends on your revenue. Businesses with annual revenue under $1.5 million can file annually. Between $1.5 million and $6 million, you must file quarterly. Over $6 million, you must file monthly. The CRA sends you a reminder before each filing deadline.
Input tax credits (ITCs)
When you pay GST/HST on business expenses, you can claim it back as an input tax credit. Your net GST/HST return shows total tax collected minus total ITCs. If you collected more than you paid, you remit the difference. If you paid more than you collected, you get a refund.
How Hengo helps
Hengo automatically calculates GST, HST, and QST based on the province of supply on every invoice and expense. It tracks ITCs, generates CRA-ready and Revenu Québec-ready returns, and displays bilingual labels (GST/TPS and QST/TVQ) for Quebec businesses. Try Hengo free for 14 days.