A tax imposed in provinces where the federal Goods & Services Tax (GST) and the provincial sales tax (PST) have been combined into a single value-added sales tax. Provinces in which the HST applies are referred to as participating provinces. The HST is in effect in Ontario and Atlantic Canada (New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island).

GST/HST registrants who make taxable supplies (other than zero-rated supplies) in the participating provinces collect tax at the applicable HST rate. GST/HST registrants collect tax at the 5% GST rate on taxable supplies they make in non-participating provinces (other than zero-rated supplies).

Special place-of-supply rules apply to determine the province in which the sales tax is levied. The HST rate can vary from one participating province to another; a list of all applicable GST/HST rates is provided on the Canada Revenue Agency’s website.