Canada GST/HST & Provincial Sales Tax (PST) Harmonization Strategies

Managing Canada's Multi-Tiered Consumption Taxes

Canada applies a federal Goods and Services Tax (GST) alongside provincial taxes. Some provinces have harmonized these into a single Harmonized Sales Tax (HST), while others (like British Columbia, Saskatchewan, and Quebec) maintain independent systems.

Compliance Requirements

• Harmonized vs. Split Billing: Calculating 13% or 15% HST for provinces like Ontario and Nova Scotia, versus separate GST + PST calculations for British Columbia.
• Input Tax Credits (ITCs): Tracking business expenses to reclaim federal GST/HST paid on operations.
• Place of Supply Rules: Determining the correct rate based on where the service is delivered or where the customer is located.

Aurex Canadian Tax Configurations

Aurex supports complex place-of-supply rule mappings and separate accounts for PST, QST, and GST to simplify year-end reporting.