GST/HST vs. PST: Understanding Canadian Sales Taxes
Selling products to customers in Canada can involve more than one type of sales tax.
For Amazon, Shopify, Walmart, and other e-commerce sellers, understanding the difference between GST/HST and provincial sales tax (PST) is important for determining what taxes may apply to your sales and what registration and filing obligations you may have.
Canada uses a combination of federal and provincial sales tax systems. Depending on where your customer is located and the nature of your business activities, you may need to deal with GST/HST, PST, or both.
In this guide, we explain the difference between GST/HST and PST, where each tax applies, and what online sellers and non-resident businesses should know about Canadian sales tax compliance.
What Is GST?
GST stands for Goods and Services Tax.
It is a federal sales tax administered by the Canada Revenue Agency (CRA). GST generally applies to taxable supplies of goods and services made in Canada.
The standard GST rate is 5% in provinces and territories that do not use the Harmonized Sales Tax system.
For example, a business selling taxable products to customers in Alberta generally deals with the 5% federal GST.
Businesses that are registered for GST/HST may also generally be able to claim Input Tax Credits (ITCs) for eligible GST/HST paid on business purchases and expenses.
For e-commerce sellers, GST can become relevant when products are imported into Canada, stored in Canadian fulfillment facilities, or sold to Canadian customers.
What Is HST?
HST stands for Harmonized Sales Tax.
HST combines the federal GST with a provincial component into a single tax.
HST applies in Canada’s participating provinces.
The current HST rates include:
• Ontario: 13%
• New Brunswick: 15%
• Newfoundland and Labrador: 15%
• Nova Scotia: 14%
• Prince Edward Island: 15%
Instead of separately charging GST and a provincial sales tax, businesses generally charge the applicable HST rate.
For online sellers, understanding where the sale is considered to take place is important because the applicable GST/HST rate can depend on the province involved.
What Is PST?
PST stands for Provincial Sales Tax.
Unlike GST, PST is generally a provincial tax rather than a federal tax.
PST is administered by individual provinces that have their own provincial sales tax systems.
For example:
• British Columbia has a 7% PST
• Saskatchewan has a 6% PST
• Manitoba has a 7% Retail Sales Tax
These provinces also have the federal 5% GST.
Quebec operates a similar separate provincial system called QST, or Quebec Sales Tax, rather than PST.
Because provincial sales taxes are administered separately from GST/HST, their registration requirements, tax rates, taxable goods, exemptions, filing requirements, and collection rules can differ.
GST/HST vs. PST: What’s the Difference?
The simplest way to understand the difference is that GST/HST is part of Canada’s federal sales tax system, while PST is generally a separate provincial sales tax system.
| GST/HST | PST |
| Federal tax system administered by CRA | Provincial tax system |
| GST applies across Canada | PST applies only in provinces with a separate PST system |
| HST combines federal GST with a provincial component | PST is charged separately from GST |
| Registration is generally handled through the CRA | Registration is generally handled through the relevant province |
| GST/HST rules are federally administered | PST rules vary by province |
| Registered businesses may generally claim eligible ITCs | Provincial input tax credit rules can differ or may not apply in the same way |
This distinction is particularly important for businesses selling across multiple Canadian provinces.
Which Provinces Have GST, HST, or PST?
The Canadian sales tax system varies by province.
| Province | Sales Tax System | Current Rate |
| Alberta | GST | 5% |
| British Columbia | GST + PST | 5% + 7% |
| Manitoba | GST + PST | 5% + 7% |
| New Brunswick | HST | 15% |
| Newfoundland and Labrador | HST | 15% |
| Nova Scotia | HST | 14% |
| Ontario | HST | 13% |
| Prince Edward Island | HST | 15% |
| Quebec | GST + QST | 5% + 9.975% |
| Saskatchewan | GST + PST | 5% + 6% |
| Yukon | GST | 5% |
| Northwest Territories | GST | 5% |
| Nunavut | GST | 5% |
Does a Business Need to Register for Both GST/HST and PST?
Not necessarily.
GST/HST and PST are separate tax systems, so registration for one does not automatically mean that a business is registered for the other.
For example, a business may have a GST/HST registration with the CRA while also having separate provincial sales tax registration obligations.
Whether a business needs to register for PST depends on the specific province and the business’s activities.
Factors can include:
• Where the business operates
• Where inventory is located
• Where products are sold
• Whether the business has a physical or economic presence in a province
• The type of products being sold
• Provincial registration thresholds
• Whether the business is a non-resident seller
This is why businesses selling throughout Canada should not assume that a single GST/HST registration covers all provincial sales tax obligations.
What Does This Mean for Amazon Sellers?
Amazon sellers can face several Canadian tax considerations depending on their business model and fulfillment arrangements.
For example, an Amazon seller may:
1. Import inventory into Canada
2. Store products in a Canadian fulfillment facility
3. Sell products to customers in different provinces
4. Collect GST/HST on taxable sales
5. Have additional provincial sales tax obligations
Amazon FBA can make the situation more complex because inventory may be physically located in Canada even when the seller is based outside the country.
Sellers should therefore consider both their federal GST/HST obligations and any applicable provincial sales tax requirements.
What Does This Mean for Shopify Sellers?
Shopify sellers have more control over their online stores, but they are still responsible for understanding their Canadian tax obligations.
A Shopify store may sell to customers in several provinces, each with different sales tax systems.
For example, a seller could have customers in:
• Ontario, where HST applies
• Alberta, where GST applies
• British Columbia, where GST and PST may apply
• Saskatchewan, where GST and PST may apply
• Quebec, where GST and QST may apply
The seller needs to determine which taxes apply to each transaction based on the relevant Canadian sales tax rules.
Simply enabling a tax setting in Shopify does not determine whether the business has a legal obligation to register and collect a particular tax.
What About Non-Resident Online Sellers?
Non-resident sellers can have additional considerations when selling into Canada.
A business located outside Canada may still have Canadian sales tax obligations depending on its activities and how it supplies goods or services to Canadian customers.
For example, relevant factors can include:
• Canadian inventory
• Canadian fulfillment centers
• Importing goods into Canada
• Delivering goods to Canadian customers
• Agents or representatives in Canada
• The type and value of Canadian sales
• The applicable provincial rules
For non-resident e-commerce businesses, determining whether GST/HST registration is required is only one part of the overall compliance process.
Provincial sales tax obligations should also be considered separately.
Does the $30,000 GST/HST Threshold Apply to PST?
This is an important distinction for online sellers.
The $30,000 threshold commonly associated with GST/HST registration should not automatically be treated as a universal PST threshold.
GST/HST registration rules have specific federal requirements, including different rules that can apply to certain non-resident businesses operating in Canada’s digital economy.
Provincial sales taxes are governed by separate provincial legislation and may have their own registration requirements and thresholds.
Therefore, a business should not assume that being below the GST/HST registration threshold automatically means it has no provincial sales tax obligations.
Each province should be reviewed separately.
Why Understanding GST/HST and PST Matters
For e-commerce businesses selling across Canada, getting sales tax wrong can create compliance problems.
Common issues can include:
• Registering for the wrong tax accounts
• Failing to register when required
• Charging an incorrect tax rate
• Not collecting applicable provincial sales tax
• Incorrect tax reporting
• Missing filing deadlines
• Failing to maintain appropriate records
• Misunderstanding the difference between GST/HST and provincial taxes
These issues can become more complicated when a seller operates across multiple marketplaces or uses Canadian fulfillment facilities.
A proper Canadian sales tax structure can help businesses understand what needs to be collected, reported, and remitted.
GST/HST and PST Are Not the Same as Import Duties
Another important distinction for e-commerce sellers is the difference between sales taxes and import charges.
GST/HST and PST are sales taxes.
Import duties and tariffs are separate charges that can apply when goods enter Canada.
An imported product may therefore involve several different financial considerations, including:
• Customs duties
• Import GST
• Applicable provincial sales taxes
• Marketplace or fulfillment costs
• Brokerage and other import-related charges
Understanding these charges separately can help sellers calculate their true landed cost and avoid confusing import taxes with sales taxes charged to customers.
How Canadian Sales Tax Compliance Fits Together
For an international e-commerce seller, Canadian tax compliance can involve several connected components.
A simplified structure can look like this:
Business Number (BN)
↓
GST/HST Registration
↓
Import/Export Account (RM)
↓
CARM Client Portal
↓
Provincial Sales Tax Registration, Where Required
↓
Sales Tax Collection and Filing
↓
Tax Remittance and Record Keeping
Not every business will need every registration or account.
The requirements depend on the seller’s activities, business structure, inventory arrangements, sales, and the provinces in which the business operates.
Final Thoughts
GST/HST and PST are both important parts of Canada’s sales tax landscape, but they are not the same tax.
GST is a federal tax, while HST combines the federal GST with a provincial component in participating provinces. PST is generally administered separately by provinces that maintain their own provincial sales tax systems.
For Amazon, Shopify, Walmart, and other online sellers, understanding this distinction is important when determining Canadian registration, collection, filing, and remittance obligations.
For non-resident sellers in particular, Canadian sales tax compliance can involve more than simply obtaining a GST/HST number. Inventory, imports, fulfillment arrangements, sales activity, and provincial requirements may all need to be considered.
Need Help With Canadian Sales Tax Compliance?
Canadian Sales Tax Solutions helps non-resident e-commerce sellers understand and manage their Canadian sales tax obligations.
Our services can help with areas such as:
• GST/HST registration
• Provincial sales tax registration
• Import GST recovery
• Canadian tax filings
• Amazon FBA tax compliance
• Shopify and e-commerce tax compliance
• Non-resident seller compliance
Need Help With Canadian Sales Tax Compliance?
If your business imports inventory into Canada or sells through Amazon Canada, Walmart Canada, Shopify, or other online marketplaces, understanding Canadian sales tax compliance requirements is essential. Canadian Sales Tax Solutions provides expert guidance for non-resident online sellers requiring GST and HST registration, provincial registrations and filing, tax payment assistance, import GST recovery, ITC claims, audit support, and ongoing Canadian tax compliance services. We help e-commerce businesses manage compliance efficiently so they can focus on growth in the Canadian market.
For expert help with Canadian sales tax registration, filing, payment, audit support, and e-commerce compliance services, contact Canadian Sales Tax Solutions: