June 2016: VAT Rates Change in Canada

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VAT rates ---UP --- UP ---- and NOT away??? 

(Canada)

CANADA has a mix of Federal and Provincial VAT (Sales Tax systems). The Federal VAT is called GST (Goods and Services Tax) and charged at the rate of 5 % --- plus the Provincial Sales Tax of about 8 % in most provinces/territories results often to a Harmonized Sales Tax (HST) of about 13 %.

Three of the ten provinces changed the provincial part of the HST now --- and it is going UP:

  1. NEW BRUNSWICK effective July 1, 2016 to the combined HST rate of 15 % (GST 5 % plus PST 10 %)
  2. NEWFOUNDLAND AND LABRADOR effective July 1, 2016 to the combined HST rate of 15 % (GST 5 % plus PST 10 %)
  3. PRINCE EDWARD ISLAND effective October 1, 2015 to the combined HST rate of of 15 % (GST 5 % plus PST 10 %)

--You may want to check your incoming and outgoing Canadian supplier's and customer's invoices and long term contracts and sales agreements in advance of the changes. --

List of all other current Canadian Provinces and Territories HST/GST/PST rates:

ProvinceVAT Rate
Alberta5 % (only GST)
British Columbia5 % GST + 7 % PST
Manitoba5 % GST + 8 % PST
New Brunswick15 % HST (GST 5 % + PST 10 %)
Newfoundland15 % HST (GST 5 % + PST 10 %)
Nova Scotia15 % HST
Northwest Territories5 % (only GST)
Nunavut5 % (only GST)
Ontario13 % HST
Prince Edward Island15 % HST (GST 5 % + PST 10 %)
Quebec5 % GST (TPS) + 9.975 % QST (TPQ)
Saskatchewan5 % GST + 5 % PST
Yukon5 % (only GST)

 

We provide worldwide VAT Refund Claim filing and VAT/Import VAT recovery services for more than 20 years in all applicable VAT countries. Our substantial VAT recovery results can be seen on our website www.insatax.com - click on VAT refund samples.


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