While GST/HST is the most commonly discussed sales tax in Canada, it is not the only one. Several provinces—Quebec, Manitoba, Saskatchewan, and British Columbia—administer their own provincial sales taxes independently of the federal system. If you are doing business across provincial lines, it is critical to understand each province’s specific rules, thresholds, and registration requirements.
This article builds on our previous post, “Place of Supply: Determining the Right GST/HST Rate,” and breaks down key provincial sales tax systems outside the GST/HST regime, offering practical advice for staying compliant when operating in multiple jurisdictions.
In Quebec, businesses may be required to register for both GST/HST and QST (Quebec Sales Tax). While GST/HST is administered federally by the Canada Revenue Agency (CRA), QST is administered separately by Revenu Québec.
Businesses located outside of Quebec must register for QST if they meet certain thresholds. As of September 1, 2019, non-resident businesses to Quebec—that is, businesses without a physical presence in the province—that supply taxable goods or services to specified consumers in Quebec must register if their sales exceed $30,000 annually.
There is a distinction between:
Revenu Québec handles registration, collection, remittance, and compliance for QST. It is a separate system from CRA, and you must file returns online through Revenu Québec, either using their express service with an access code or via your “My Account”. You can also file returns through your financial institution. Please note you can only claim Quebec input tax credits if you are registered as a regular QST registrant.
Once registered, businesses must:
Businesses operating in Quebec must be diligent in managing compliance with both federal and provincial systems.
Manitoba’s Retail Sales Tax (RST) is a standalone tax system separate from GST/HST, operated by Manitoba Finance. The current RST rate is 7%.
RST applies primarily to the sale of tangible personal property and certain services such as:
Businesses must ensure they understand which items are taxable and whether their services fall within scope.
Manitoba requires out-of-province businesses to register and collect RST if they:
This includes online retailers and remote sellers who may not have a physical presence in Manitoba but make taxable sales to consumers in Manitoba.
Software—both pre-packaged and customized—is generally taxable. Remote sellers of digital products may also be required to register and collect RST, depending on how the product is delivered and used in Manitoba. Effective January 1, 2024 Manitoba RST will also apply to cloud computing services, which includes services such as remote computing, date storage and subscription-based software.
Business can register and file returns for Manitoba RST through TAXcess.
Though both provinces operate Provincial Sales Tax (PST) systems, each has its own rules and nuances. In general, PST is separate from GST/HST, and each province administers it independently from federal tax. Out-of-province sellers may need to register if they sell taxable goods or services to customers within either province, even if they do not have a physical presence there.
Saskatchewan levies PST of 6% on taxable goods and services, and the Saskatchewan Government administers it. Out-of-province businesses must register if they make retail sales in the province, including the sale or lease of tangible personal property, taxable services, or contracts of insurance that are acquired for use or consumption in or relating to Saskatchewan.
Retail sales in the province include retail sales by persons who do not otherwise carry on business in Saskatchewan and include situations where a person selling or providing tangible personal property to a consumer or user:
Tangible personal property generally refers to goods and also includes data, information, or material that landlines, wires, fibre optic cables, satellites, and similar means transfer, transmit, or distribute. This therefore applies to e-commerce businesses, software providers, and digital service platforms.
Businesses can register and file their Saskatchewan PST returns through Saskatchewan eTax Services (SETS).
Businesses located outside British Colombia (BC) but within Canada must register to collect and remit BC PST if all of the following conditions apply on a regular basis:
Since July 1, 2022 BC has also required ‘online marketplace facilitators’ such as Amazon to register to collect and remit PST on sales and leases facilitated within BC.
Businesses in industries such as construction, technology, and telecommunications may face unique compliance challenges. For example, PST may apply differently depending on whether materials are purchased for resale, incorporated into real property, or used in the provision of taxable services.
British Columbia applies PST of 7% on the sales of most taxable goods and services and businesses can register and file their returns through eTaxBC.
Navigating multiple provincial tax systems can be complex, especially for growing businesses. Below are some key considerations:
You must evaluate whether your business has a physical presence, ships or delivers products, or sells digital goods or services into a province. In many cases, economic activity alone may trigger registration obligations, particularly for Quebec, Manitoba, Saskatchewan, and British Columbia.
Modern accounting platforms can assist with:
Look for accounting software that supports multi-jurisdictional tax settings or consider working with an accountant to build a customized compliance workflow.
Managing provincial sales tax obligations goes beyond understanding GST/HST. If your business sells across provincial borders—especially to Quebec, Manitoba, Saskatchewan, or British Columbia—you need to ensure you are charging and remitting the correct taxes in each jurisdiction.
These provincial systems are distinct and independently administered, which means registration, filing, and compliance are not centralized. As a result, many businesses benefit from professional support to avoid missteps and penalties.
GBA can help businesses navigate these provincial sales tax rules, providing guidance on registration, compliance, and best practices. Stay tuned for the next article in this series, where we explore how GST/HST applies to businesses operating from outside Canada.
Schedule a call today with one of our team members to discuss your accounting or tax needs – For More Details, Click Here.
This blog is not meant to provide specific advice or opinions regarding the topic(s) discussed above. Should you have a question about your specific situation, please discuss it with your GBA advisor.
GBA LLP is a full-service accounting firm in the Greater Toronto Area, but we primarily service all of Ontario as well as the rest of Canada virtually, except Quebec. Our team of over 30 provides audits and reviews of financial statements, compilations of financial information, and corporate tax returns. We provide specialized corporate tax and succession planning for small and medium businesses, in addition to general advisory services.
If you would like to schedule a call to discuss your accounting or tax needs with one of our team members, please complete the free, no-obligation meeting request on this page.
