Yesterday, I was speaking with a friend who manufactures custom designed jewelry for customers/clients. She is in the process of updating her computer system to charge the appropriate amount of Canadian sales taxes (as at July 1, 2010). The applicable rates in Canada (as at July 1, 2010) are:
|Canadian Province||Federal GST Rate||HST Rate||Provincial Sales Tax Rate|
|Quebec||5%||N/A||7.5% (charged on GST incl price|
|Prince Edward Island||5%||N/A||10%|
It is important to note that the tax rates can change (often in the Spring at the time budgets are tabled).
If a supplier is registered for GST purposes, they will have to charge (1) GST in respect of taxable sales in Canada and (2) HST at the applicable HST rate if the HST place of supply rules deem a supply to be made in a participating province.
The rules may be different on when a vendor must register for provincial sales tax purposes and charge provincial sales tax on a sale of goods in a province or on services in respect of tangible personal property.