Tax determination
The Canadian sales taxes include the Provincial Sales Tax (PST), the Quebec Sales Tax (QST), the federal Goods and Services Tax (GST), and the Harmonized Sales Tax (HST), which is a combination of the provincial sales tax portion and the GST in some provinces.
The revised tax codes for each Canadian province or territory are included with the standard delivery of Sage X3 .
Sales tax rates by province
GST applies to most goods and services produced in Canada, though certain exceptions could apply.
Generally, HST applies to the same base of goods and services as GST. The participating provinces, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island, harmonized their provincial sales taxes with the GST to implement the HST.
In Quebec, the most common sales taxes are GST, which is calculated at a rate of 5% on the selling price, and QST, which is calculated at a rate of 9.975% on the selling price excluding the GST.
You can use these rates when setting up the tax codes in the Tax rates function (GESTVT).
| Province | Type | PST | GST | HST | Total tax rate |
| Alberta | GST | 5% | 5% | ||
| British Columbia | GST + PST | 7% | 5% | 12% | |
| Manitoba | GST + PST | 7% | 5% | 12% | |
| New Brunswick | HST | 15% | 15% | ||
| Newfoundland and Labrador | HST | 15% | 15% | ||
| Northwest Territories | GST | 5% | %5 | ||
| Nova Scotia | HST | 15% | 15% | ||
| Nunavut | GST | 5% | %5 | ||
| Ontario | HST | 13% | 13% | ||
| Prince Edward Island | HST | 15% | 15% | ||
| Quebec | GST + QST* | *9.975% | 5% | 14.98% | |
| Saskatchewan | GST + PST | 6% | 5% | 11% | |
| Yukon | GST | 5% | 5% |
Destination-based sales tax
The rate of sales tax to charge depends on the place of supply. This is where a company makes its sale, lease, or other supply.
For example, a bicycle shop based in Toronto, Ontario, delivers a mountain bike to a customer in Vancouver, British Columbia. The bike shop charges 5% GST and 7% PST on the sale because the place of supply is British Columbia.
If the same Toronto based bike shop sells a bike to a customer in Ontario, the shop charges 13% HST on this sale because the place of supply is Ontario.
A zero-rated supply has a 0% GST/HST rate throughout all of Canada.
BP tax rule
Each province has a corresponding tax rule as defined in the table below.
| Province | Tax rule code |
| Alberta | AB |
| British Columbia | BC |
| Manitoba | MB |
| New Brunswick | NB |
| Newfoundland and Labrador | NL |
| Northwest Territories | NT |
| No taxed | NTX |
| Nova Scotia | NS |
| Nunavut | NU |
| Ontario | ON |
| Prince Edward Island | PE |
| Quebec | QC |
| Saskatchewan | SK |
| Yukon | YT |
