Canada has three types of sales tax:
- Goods and Services Tax (GST)
- Provincial sales taxes (PST)
- Harmonized Sales Tax (HST)
The GST is a federal value-added tax with a fixed rate of 5%, as of January 2019. The Canadian government levies the GST on sales in Canada of most tangible property and of services.
The PST is collected in the provinces of British Columbia, Saskatchewan, Manitoba (Retail Sales Tax or RST) and Quebec (Quebec Sales Tax or QST). In all provinces where the provincial sales tax is collected, the tax is imposed on the sale price without GST.
The HST is collected in five of the ten Canadian provinces: New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island. In HST provinces, the HST includes the GST and a provincial portion of tax. This tax is charged as one tax, and isn’t broken into federal and provincial portions.
The three territories of Canada (Yukon, Northwest Territories and Nunavut) and province of Alberta do not have territorial sales taxes and collect the GST only.
In an X-Cart based store, Canadian taxes can be configured using one of the following X-Cart add-ons:
- Canadian Taxes - an add-on for manual configuration of Canadian taxes (GST, PST, QST or HST). The add-on comes with the provincial tax rates pre-configured and automatically displays the correct tax name to a customer at checkout based on the customer’s province. If required, a store administrator can edit the tax rates for each province, as well as set several taxes for a province based on customer memberships. See the Canadian Taxes add-on manual.
- AvaTax Sales Tax Automation - an add-on for integration with AvaTax, a sales tax automation service by Avalara. See AvaTax Sales Tax Automation add-on manual.