Taxes in Canada
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No more GST rebates
Until 2007, travellers to Canada could claim back their GST on leaving the country, but this is no longer possible.
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Be aware that (in contrast to other countries where what you see is what you pay and so called "hidden costs" are forbidden by law) you will almost always pay more than the prices displayed. They usually exclude sales tax and any number of very inventive extras and/or more or less mandatory tips.
So don't get your dollar ready when you to the cashier in a thrift shop, because he may well ask you for $1.12...
Taxes will be added on top of the displayed price at the cashier. Exceptions where the displayed price includes all applicable taxes are gasoline (the amount you pay is as it appears on the pump), parking fees, liquor bought from liquor stores, and medical services such as eye exams or dentistry.
A Goods and Services Tax (GST) of 5% is applied to most items. In addition to the GST, most provinces charge an additional Provincial Sales Tax (PST) on purchases. British Columbia, Ontario, and the Atlantic Provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador have joined or "harmonized" the PST and GST. In these provinces, instead of being charged two separate taxes on a purchase, consumers will see one tax called the Harmonized Sales Tax (HST).
While the GST and PST or HST are charged on most goods and services, some items are currently exempt from taxation. While this list can vary by province and tax, some common examples are: basic groceries (not prepared), prescription drugs, residential housing, medical and dental services, educational services and certain childcare services.
The sales tax rates (as of 2008) are:
Alberta - no PST, GST total only (5% total)
British Columbia - The PST and GST were eliminated and replaced with a 12% Harmonized Sales Tax (HST) on July 1st 2010 (12% total)
Manitoba - adds 7% to the total taxable purchases plus the GST total (12% total)
New Brunswick - adds 13% to the total taxable purchases as the Harmonized Sales Tax (HST) (13% total)
Newfoundland and Labrador - adds 13% to the total taxable purchases as the Harmonized Sales Tax (HST) (13% total)
Northwest Territories - no PST, GST total only (5% total)
Nova Scotia - adds 15% to the total taxable purchases as the Harmonised Sales Tax (HST) (15% total)
Nunavut - no PST, GST total only (5% total)
Ontario - The PST and GST were eliminated and replaced with a 13% Harmonized Sales Tax on July 1st 2010 (13% total)
Prince Edward Island - adds 10% to the total taxable purchases plus the GST total (15% total)
Quebec - adds 7.5% to the total of taxable purchases and the GST - the GST is taxed (12.875% total)
Saskatchewan - adds 5% to the total taxable purchases plus the GST total (10% total)
Yukon - no PST, GST total only (5% total)
Additional taxes have been placed on some goods (such as alcohol and gasoline) and vary by province; however, these taxes are often included in the displayed price of the good.
The Most Frequently Asked Travel Questions about Canada
