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Understanding Digital Sales Tax in Canada: GST, HST, and More

  • Different sales taxes in Canada include GST, HST, PST, RST, and QST
  • Canada has a federal Goods and Services Tax (GST) of 5%
  • Some provinces have their own sales taxes, such as PST, QST, and RST
  • Five provinces have the Harmonized Sales Tax (HST) which combines federal and provincial taxes
  • Digital sales tax laws in Canada are complex, especially for remote sellers
  • Non-resident vendors selling digital goods and services are subject to GST/HST rules
  • Tax rates on cross-border sales of digital goods vary by province, ranging from 5% to 15%
  • Quebec, Saskatchewan, British Columbia, and Manitoba have additional taxes on cross-border digital services with their own rates and thresholds

Source: quaderno.io

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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