Canadian GST Calculator

Zero-rated supplies are taxed at 0% GST/HST, but suppliers can still claim Input Tax Credits (ITCs) on related expenses. Major categories include:

• Basic groceries — bread, milk, vegetables, fresh meat (prepared food, snack foods, and restaurant meals are taxed)
• Prescription drugs and most medical devices
• Exports of goods and services
• International passenger transportation
• Most agriculture and fishing products
• Feminine hygiene products (since 1 July 2015)

Exempt supplies have no GST/HST charged and businesses cannot claim ITCs on related expenses. Examples:

• Residential rent and long-term residential accommodation
• Most health and dental services from regulated practitioners
• Child care services for children 14 and under
• Most educational services from primary, secondary, and recognized post-secondary institutions
• Most financial services — loans, securities, insurance
• Legal aid services

Businesses making both taxable and exempt supplies must apportion ITCs.

Both result in no GST/HST being charged to the customer, but they differ in input tax treatment:

• Zero-rated (e.g. basic groceries, exports): no GST/HST on the sale, but the supplier can claim ITCs on related business expenses.
• Exempt (e.g. residential rent, financial services): no GST/HST on the sale, and the supplier cannot claim ITCs on related expenses.

Zero-rated treatment passes through the system at 0%, while exempt treatment effectively absorbs the GST/HST into the cost of the supply.

Input Tax Credits (ITCs) let GST/HST-registered businesses recover the GST/HST paid on purchases used in commercial activities. The mechanic is simple:

• You collect GST/HST on sales (output tax)
• You pay GST/HST on business purchases (input tax)
• You remit the difference to the CRA — or claim a refund if input tax exceeds output tax

Most businesses have 4 years to claim ITCs from the period in which the GST/HST was paid. Charities, public service bodies, and businesses with annual sales above CAD 6 million have 2 years. Supporting documentation is required (invoices, receipts, contracts).

The CRA assigns or approves a reporting period based on annual taxable revenues:

• Annual — annual taxable supplies up to CAD 1.5 million (default for small businesses)
• Quarterly — annual taxable supplies CAD 1.5M – 6M (or elected by smaller businesses)
• Monthly — annual taxable supplies above CAD 6 million

Returns and payments are generally due one month after the end of the reporting period. Annual filers with a 31 December year-end have until 30 April for payment, but self-employed individuals get until 15 June to file the return.

If you file your GST/HST return after the due date and you owe a balance, the CRA imposes a late-filing penalty:

• 1% of the amount owing, plus
• 0.25% of the amount owing × number of full months the return is outstanding (max 12 months)

Maximum total penalty: 1% + (12 × 0.25%) = 4% of the amount owing. Late filing where no balance is owing (nil return or refund) generally does not attract this penalty. If the CRA issues a formal demand to file and you do not comply, an additional CAD 250 penalty applies — even on nil returns.

Unlike the late-filing penalty (which only applies if you file late and owe a balance), interest applies to any amount that remains unpaid past the due date:

• Interest is charged daily, compounded, on the overdue balance
• Calculated at the CRA prescribed rate (set quarterly)
• Continues until the full balance is paid

Failure to remit GST/HST collected from customers can also lead to gross negligence penalties (up to 25% of the tax) and, in serious cases, prosecution. Annual filers with net tax above CAD 3,000 must also make quarterly instalment payments or face instalment interest.

GST/HST registrants must retain all records that support amounts reported on returns for at least 6 years from the end of the year they relate to. This includes:

• Sales invoices and receipts
• Purchase invoices supporting Input Tax Credit claims
• Bank statements and ledgers
• GST/HST returns and supporting working papers
• Contracts and agreements

Records can be kept in physical or electronic form. The CRA may require you to retain records longer if a notice of objection or appeal is in progress, or if you are under audit. Without sufficient documentation, ITC claims can be denied.

The Quick Method is a simplified GST/HST accounting option for small businesses with annual taxable revenues of CAD 400,000 or less (including GST/HST). Instead of tracking ITCs on every purchase:

• You charge GST/HST on sales as normal
• You remit a fixed percentage of your tax-included revenues to the CRA — the rate depends on your business type and province
• You keep the difference between what you collect and what you remit

Quick Method rates are lower than the regular GST/HST rate (e.g. 8.8% in Ontario for a services business in HST areas). It works best for service businesses with low input costs. Election is made by filing form GST74.

Five provinces use the Harmonized Sales Tax (HST), where the federal GST and provincial portion are combined into a single rate administered by the CRA:

• Ontario: 13%
• Nova Scotia: 14% (reduced from 15% on 1 April 2025)
• New Brunswick: 15%
• Newfoundland & Labrador: 15%
• Prince Edward Island: 15%

HST registrants file one return covering both federal and provincial portions, simplifying compliance versus the separate GST/PST regimes in other provinces.

Quebec collects the federal 5% GST and its own 9.975% Quebec Sales Tax (QST) separately — for a combined effective rate of 14.975%.

Key differences from HST:

• Quebec businesses generally file two separate accounts (one for GST/HST with CRA, one for QST with Revenu Québec)
• Both taxes are administered by Revenu Québec on behalf of the CRA for most Quebec-based businesses
• QST applies to most goods and services (the same broad base as GST), unlike PST in BC, Manitoba and Saskatchewan which is narrower

The QST registration threshold mirrors the federal GST/HST: CAD 30,000.

These three provinces charge a separate provincial tax in addition to the 5% federal GST:

• British Columbia (BC): 5% GST + 7% PST = 12% combined. PST administered by the BC government.
• Manitoba (MB): 5% GST + 7% Retail Sales Tax (RST) = 12% combined. RST was reduced from 8% to 7% on 1 July 2019.
• Saskatchewan (SK): 5% GST + 6% PST = 11% combined.

Unlike GST/HST, PST and RST are not value-added taxes — businesses generally cannot claim them back as input credits. PST paid on business inputs becomes a real cost rather than passing through the system.

No. Alberta is the only province with no provincial sales tax — the same is true of the three territories (Northwest Territories, Nunavut, Yukon). Only the federal 5% GST applies to taxable supplies in these jurisdictions.

This makes Alberta's effective consumption tax rate (5%) the lowest of any Canadian province — a long-standing feature of Alberta's tax landscape and a contributor to the so-called "Alberta Advantage" for businesses and consumers.