Do I charge GST / HST on the sale of goods and services to another province?

In order to answer this, we must look at the sale of goods and sale of services separately because the tax treatment differs.

By way of background, HST (Harmonized Sales Tax) is the combination of Federal GST and Provincial Sales Tax (PST) into a single value added tax. Not all provinces participate in HST.

The provinces that charge HST are:
•Ontario
•Newfoundland
•Nova Scotia
•New Brunswick

The provinces that charge GST and their own Provincial Sales Tax are:
•Saskatchewan
•Manitoba
•Quebec

Alberta only levies GST and does not have a Provincial Sales Tax. So it is the lowest sales tax jurisdiction among all of the provinces.

HST/GST on the Sale of Goods

Let’s examine HST and GST on the sale of goods. In general, GST or HST on a sale of goods is charged in the province where the goods are delivered to. However, it is also important to look at who arranges the delivery.

•If the supplier arranges the delivery then GST/HST is charged in the province where the goods are delivered to.
•If the buyer arranges the delivery then GST/HST is charged in the province where the supplier is located.
•If the goods are delivered through courier or mail then GST/HST is charged in the province where the goods are delivered to.

Let’s take an example of an Ontario based company that ships 1000 chairs to a company located in Alberta. Assume that the Ontario company arranges the delivery. In this example, the supplier is the Ontario company and the buyer is the Alberta company. Since the Ontario company is the one that is arranging the delivery, GST will be charged in the province of Alberta.

If, on the other hand, the Alberta company decided to pick up the 1000 chairs directly from the Ontario supplier, then HST will be charged in the province of Ontario as that is where the supplier is located.

HST/GST on the Sale of Services - Do I charge GST or HST on the sale of goods and services to another province?

Services are taxed differently than goods. GST or HST on the provision of services is charged in the province where the customer is located.

If the customer is a non-resident of Canada, then GST or HST is not applicable.