Plain meaning
A value-added tax system that affects many sales, purchases, remittances, rebates, and input tax credits.
Also called
Goods and Services Tax
Harmonized Sales Tax
input tax credits
input tax credit
GST
HST
Key points
- GST is the federal goods and services tax. HST applies in participating provinces where the federal GST and provincial sales tax are harmonized.
- Many businesses that make taxable supplies must register, collect GST/HST, file returns, and remit net tax.
- Registered businesses can often claim input tax credits for GST/HST paid on expenses used in commercial activities.
- Some supplies are zero-rated, meaning GST/HST applies at 0%, while other supplies may be exempt and do not allow input tax credits in the same way.
- Special rebates and housing-related rules can make GST/HST important in real estate, construction, charities, public bodies, and cross-border transactions.
Why it comes up
GST/HST changes can affect household costs, business compliance, housing rebates, and government revenue.