If you’ve ever wondered, “Do I charge 5%, 12%, 13%, or nothing at all?” you’re not alone. Between GST, HST, and provincial sales taxes (PST), Western Canadian owners and families often feel unsure about what to collect, when to register, and how to file. This guide explains what GST/HST really is, how it works across Alberta, Saskatchewan, and BC, and practical steps to get it right—so you can focus on running your business.
GST/HST in One Minute
- Goods and Services Tax (GST) is a federal tax set at 5% across Canada
- Harmonized Sales Tax (HST) applies only in certain provinces that have combined GST with their provincial tax (Ontario, Nova Scotia, New Brunswick, PEI, Newfoundland and Labrador). Western provinces do not use HST.
- Alberta: 5% GST only (no PST).
- Saskatchewan: 5% GST plus 6% PST (provincially administered)
- British Columbia: 5% GST plus 7% PST (provincially administered)
What does that mean for you? If you operate in AB, you’ll generally charge 5% GST. If you sell to customers in SK or BC, you may also need to register to collect and remit PST in those provinces, in addition to GST Corporate tax planning.
Who Must Register for GST/HST?
- The “small supplier” threshold is $30,000 of taxable sales in the last four consecutive calendar quarters. Above that, registration is mandatory.
- You can voluntarily register below the threshold if it benefits you (for example, to claim Input Tax Credits on business purchases).
- Registration is at the federal level through the CRA (Business Number with a GST/HST program account).
Tip: Many new companies add GST/HST registration when they use our business incorporation services, so invoicing and bookkeeping start correctly from day one.
What’s Taxable, Zero‐Rated, and Exempt?
- Taxable supplies: Most goods and services (e.g., construction, consulting, retail goods, digital services) are taxable at 5% GST in AB (and 5% GST plus PST if applicable in SK/BC).
- Zero‐rated supplies: Taxed at 0%. Examples include basic groceries and many exports shipped outside Canada. You charge 0% but can still claim Input Tax Credits.
- Exempt supplies: You don’t charge GST, and you can’t claim Input Tax Credits directly related to the exempt activity (e.g., certain health, education, childcare, and residential rent).
If your business mixes taxable and exempt supplies, track costs carefully to avoid over- or under-claiming Input Tax Credits.
Place‐of‐Supply: Where Is the Tax Owed?
GST/HST and PST depend on the “place of supply.”
- Goods: Generally, the rate is based on where the goods are delivered. Ship goods to a BC address? You’ll charge GST and likely need to handle BC PST
- Services: Often based on your customer’s location (and the type of service). If you provide services to a client in Ontario, HST may apply—even if you work from Calgary.
- Digital products/services: Place-of-supply rules still apply. Selling to consumers across provinces can create multi-province compliance.
When in doubt, document where your customer is and how/where the good or service is delivered.
PST in Saskatchewan and BC: Separate Registrations
GST/HST is federal. PST is separate and administered by each province:
- British Columbia PST: Many out-of-province sellers must register if they regularly sell or deliver taxable goods (and certain software/services) to BC customers. Rates are typically 7%.
- Saskatchewan PST: Registration is often required if you sell or deliver taxable goods/services to SK customers on a regular basis. The rate is typically 6%.
Because rules evolve, confirm whether your sales model triggers PST registration. We routinely help clients navigate BC and SK PST alongside GST.
Step-by-Step: Setting Up and Managing GST/HST
- Confirm if you must register
– Add your last four quarters of taxable sales. Over $30,000? Registration is required. Consider voluntary registration to claim Input Tax Credits (ITCs). - Choose your filing frequency
– CRA assigns monthly, quarterly, or annual. You can sometimes request a different frequency. Many growing companies prefer quarterly or monthly for cash flow control. - Register for a GST/HST account
– Apply online with CRA or ask us to handle it. Keep your Business Number handy. - Configure your invoicing and accounting software
– Set up correct tax codes for GST, BC PST, and SK PST. – Ensure invoices show your GST number and tax breakdown. – If you use our calgary bookkeeping services or monthly bookkeeping services, we’ll configure everything correctly. - Track Input Tax Credits
– Keep receipts and categorize expenses tied to your taxable activity. – Common ITCs: supplies, subcontractors, software, equipment. Watch for personal-use adjustments. - File and pay on time
– Monthly/quarterly returns are generally due one month after period-end. Annual filers typically have three months. CRA interest and penalties add up quickly. - Consider the Quick Method
– If your eligible taxable supplies are at or under the CRA’s current threshold (currently $400,000), the Quick Method can simplify and sometimes reduce net GST you remit. Ask us to assess whether it’s right for you.
A Real-World Example: One Business, Three Provinces
A Calgary-based online retailer sells outdoor gear:
- Alberta orders: Charges 5% GST.
- BC orders: Ships goods to Vancouver. Must charge 5% GST and register/remit 7% BC PST.
- Saskatchewan orders: Ships to Regina. Must charge 5% GST and register/remit 6% SK PST if sales activity triggers registration.
Big Country Accounting Group sets up the client’s invoicing to automatically apply the right taxes by shipping address, configures bookkeeping for small businesses in their cloud software, and implements processes to claim ITCs. We also coordinate corporate tax planning and corporate tax services so year-end taxes align with compliance in all three provinces.
Common GST/HST Mistakes to Avoid
- Charging HST in Alberta: AB is GST-only. HST applies based on customer location in HST provinces, not where your office is.
- Ignoring PST: Selling into BC or SK without PST registration can create assessments and penalties later.
- Not charging GST on delivery or mandatory service fees: These are often taxable.
- Over-claiming ITCs: Personal or non-commercial portions aren’t claimable.
- Missing deadlines: Late filings compound interest and may trigger reviews.
Immediate Tips You Can Apply
- Add your GST/HST number and tax breakdown to every invoice.
- Review your last quarter’s sales by province; confirm if BC/SK PST registration is needed.
- Create a simple “tax matrix” for staff: which taxes to charge by province and product/service.
- Reconcile GST collected and ITCs monthly to avoid surprises at filing time.
- If growth is accelerating, consider part-time cfo services calgary to forecast cash requirements for tax remittances and expansion.
How We Help Western Canadian Owners
From startups to established operators, we tailor practical support:
- calgary bookkeeping services and monthly bookkeeping services to keep your tax codes, ITCs, and filings tight.
- tax preparation services calgary for clean, on-time GST/HST and income tax returns.
- corporate tax planning integrated with GST/PST to avoid cash crunches.
- business incorporation services that set you up right from day one.
- tax services for individuals when business and personal finances overlap.
Think of us as your trusted accounting for businesses partner—clear answers, proactive reminders, and hands-on execution.
Related searches we hear from Alberta, Saskatchewan, and BC clients
- GST registration Alberta
- BC PST registration
- Saskatchewan PST rules
- Input tax credits Canada
- Small supplier threshold Canada
- GST place of supply rules
- Quick Method GST Canada
FAQs
Do I have to charge GST if I’m under $30,000?
Not if you’re a “small supplier” under $30,000 in taxable sales over four consecutive calendar quarters. However, voluntary registration lets you claim Input Tax Credits, which can be valuable if you have start-up costs.
I’m in Alberta. Do I ever charge HST?
Possibly. If the place of supply is an HST province (e.g., Ontario), you may need to charge HST even if you operate from Alberta. For BC and SK customers, you’ll generally charge 5% GST and may also need to collect PST depending on your activities.
I sell online to BC and SK—do I need PST accounts?
If you regularly sell or deliver taxable goods (and certain services/software) into BC or SK, you may have to register and remit PST in those provinces. Rules differ and change—ask us to review your sales model.
What’s the difference between zero‐rated and exempt?
Zero‐rated items are taxed at 0%—you don’t charge tax, but you can claim ITCs. Exempt items aren’t taxed and you generally can’t claim ITCs related to those activities.
Ready for Clear, Proactive Help?
GST/HST and PST don’t have to be confusing or risky. Big Country Accounting Group helps Western Canadian owners simplify compliance, reduce tax surprises, and build better systems.
- Need clean books and compliant filings? Our monthly bookkeeping services have you covered.
- Want integrated GST/PST with year-end planning? Our corporate tax services and corporate tax planning keep everything in sync.
- Launching or restructuring? Ask about our business incorporation services and part-time cfo services calgary for cash flow and forecasting support.
Contact Big Country Accounting Group today to book a friendly, no-pressure consultation. Let’s make tax easier—so you can get back to growing your business.
