Where to Register? The GST vs PST Breakdown Every Business Needs

Confused by Canada’s GST, HST, and PST? Here’s how each works and what your business needs to collect and remit by province.

Fritz Acosta

• 2 min read
Where to Register? The GST vs PST Breakdown Every Business Needs

If you’re doing business in Canada, you’ve probably realized that our sales tax system isn’t exactly… simple. Between GST, HST, PST, and QST, it's easy to get overwhelmed, especially if you sell across provincial lines or online.Canada’s sales tax system is complex, combining federal and provincial rules. Here’s what you need to know.

Canada uses a layered tax system:

What is GST/HST?

GST stands for Goods and Services Tax, a federal tax applied at a rate of 5% across Canada.

HST stands for Harmonized Sales Tax, a combination of the federal GST and a provincial portion. It applies in provinces that have chosen to merge their provincial sales tax with the federal GST.

Who uses HST?

  • Ontario (13%)
  • Nova Scotia (14%)*
  • New Brunswick (15%)
  • Newfoundland and Labrador (15%)
  • Prince Edward Island (15%)

*as of June 2025

When you’re selling to customers in one of these provinces, you charge the full HST rate.

What Is PST?

PST stands for Provincial Sales Tax. Unlike HST, PST is administered separately by the provinces that still want to keep their own sales tax systems. PST is layered on top of the 5% GST.

Provinces with PST:

  • British Columbia (7%)
  • Saskatchewan (6%)
  • Manitoba (7%)

In these provinces, you charge GST + PST, and you often have to register separately for PST in each province—even if you’re not physically located there.

Then There's Québec...

Québec has its own tax called the QST (Québec Sales Tax) at 9.975%. You’re required to charge both GST and QST—even if your business isn’t physically based in the province.

If you’re a non-resident selling to Québec customers (including digital products or services), you may still need to register under Québec’s Sales Tax  System

What Sellers Need to Know

  • If you sell in multiple provinces, you may need multiple registrations
  • Digital goods are often taxed just like physical goods
  • Filing is usually quarterly, but can be monthly or annually depending on volume

How Blutax Helps

We simplify multi-province compliance with tailored registration, filing, and support services—especially for cross-border sellers.