Re: Canada Taxes

krisbfunk's picture
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Re: Canada Taxes

What about compound taxes?

Here is a site with a java applet of Canadian Tax rates: (includes source)
http://mindprod.com/applet/canadiantax.html

for the provinces that don't use a harmonized tax, PST/GST needs to be laid out in two separate lines on documents. Quebec and PEI are the only provinces that use compound taxes.

The 3 types of tax are:
GST - federal Goods and Services Tax
PST - Provincial Sales Tax (varies per province)
HST - combined federal/provincial Harmonized Sales Tax (a single, blended, sales tax)

3 Provinces use HST (combined fed/provincial)
- NB, NF, NS

All provinces are subject to federal tax (GST), however 3 of the provinces just use a combined fed/provincial tax (HST).

3 Provinces do not use PST
- AB, YT, NT

2 provinces use compound taxes
- QC, PE

Compound Taxes:
In PEI, GST is applied at 5%, and then PST is applied at 10% to that total. Making it, effectively 10.5%, instead of a combined 15.5%

In Quebec, GST is applied at 5%, and then PST is applied at 7.5% to that total. Making it, effectively 7.875%%, instead of a combined 12.875%

Wikipedia explanation:
http://en.wikipedia.org/wiki/Sales_taxes_in_Canada

If the buyer is out of the country, the all taxes GST/PST/HST are null.
If the buyer is in an HST participating province, and the vendor is not, then only HST is collected. (no GST or PST)
If the buyer is in a non participating province, then GST must be collected. (no PST or HST)
*** It doesn't matter if the vendor is in a participating province.

GST By: ssherriff (18 replies) Tue, 08/21/2007 - 06:51