The Provincial Sales Tax, commonly referred to as PST, is a a provincial tax imposed on the consumers of most goods and particular services in a particular province.
Provincial Sales Tax appears to be on its way out in Canada, gradually being replaced by HST (Harmonized Sales Tax). As of July 1, 2010, Ontario and B.C. implemented HST, joining Nova Scotia, New Brunswick, and Newfoundland and Labrador where HST has already been in effect for some time.
Four provinces still have provincial sales tax. The provincial sales tax rates and names are:
- Manitoba: 7% Retail Sales Tax (RST)
- Prince Edward Island: 10% Provincial Sales Tax (PST)
- Saskatchewan: 5% Provincial Sales Tax (PST)
- Québec: 7.5% Quebec Sales Tax (QST)
Alberta, Yukon, Nunavut, and the Northwest Territories have no provincial sales taxes.
Besides having different PST rates, and applying PST to different goods and services, provincial sales tax is calculated differently in different provinces. In Manitoba and Saskatchewan, the provincial sales tax owing is calculated based on the selling price of the article before the Goods and Services Tax (GST) has been applied. However, in Quebec and Prince Edward Island, the provincial sales tax is charged on the total selling price plus GST.
As an operator of a business in any of the provinces that has PST, it's your responsibility to charge, collect and remit provincial sales tax as required. Unlike GST, there is no Small Supplier exception for provincial sales tax.
For more information on PST, see:
