VAT Calculator Canada (2024) | GST, PST & HST Explained
The standard VAT Rate is 5%. Now you can calculate the vat bill with our Vat Calculator Canada.
VAT Calculator Canada
Make use of the Canada Tax Calculator for VAT to figure GST (5 percent) PST, 5%, or HST, based on the province you reside in. Canada is the only country that has the dual tax system in place for sales, which encompasses both federal as well province-specific taxes. The following guide can help you comprehend regional tax rates and methods to calculate VAT speedily and accurately.
Overview: Canada’s Mixed Sales Tax System
Canadian taxation on value added is:
- GST (Goods and Services Tax): Federal tax, 5%
- PST (Provincial Sales Tax): Varies by province
- HST (Harmonized Sales Tax): Combined GST + PST in certain provinces.
HST can be a condition in provinces which have combined the provincial tax and federal tax into one tax.
2024 VAT Rates by Province/Territory
| Province/Territory | GST | PST | HST | Total Rate |
|---|---|---|---|---|
| Alberta | 5% | 0% | N/A | 5% |
| British Columbia | 5% | 7% | N/A | 12% |
| Manitoba | 5% | 7% | N/A | 12% |
| Saskatchewan | 5% | 6% | N/A | 11% |
| Ontario | – | – | 13% | 13% |
| New Brunswick | – | – | 15% | 15% |
| Newfoundland and Labrador | – | – | 15% | 15% |
| Prince Edward Island | – | – | 15% | 15% |
| Nova Scotia | – | – | 15% | 15% |
| Quebec (QST system) | 5% | ~9.975% | – | ~14.975% |
| Nunavut, Yukon, NWT | 5% | 0% | N/A | 5% |
How to Calculate VAT in Canada
Add Tax
Formula: VAT = (Original Price x VAT%) / 100 Total = Original Price + VAT
Example:
- Base = $1,000
- VAT (13%) = $1,000 x 0.13 = $130
- Total = $1,130
Remove Tax
Formula: VAT = Price – (Price x (100 / (100 + VAT %))) Net Price = Price – VAT
Example:
- VAT-inclusive Price = $1,130
- VAT (13%) = $1,130 – ($1,130 x 100 / 113) $130
- Net Price = $1,000
History of VAT (GST/HST) in Canada
| Period | GST Rate |
|---|---|
| 1991-2006 | 7% |
| 2006-2007 | 6% |
| 2008-Present | 5% |
The Goods and Services Tax (GST) was introduced in the year 1991 in the Conservative Government to replace the opaque Manufacturers Sales Tax. As the years progressed, a lot of provinces switched to the tax structure that was introduced under GST. Harmonized Sales Tax (HST) model.
VAT-Exempt or Zero Rated Goods and Services
Certain items in Canada are exempt from GST and are tax-free this means there isn’t any GST or tax to be applied:
- Basic groceries
- Prescription drugs
- Medical devices, medical equipment and services
- Rents for homes that are residential (long term)
- Services for education
- Music and art lessons
- Legal assistance services
- Services and products that are considered to be charitable
- Services for financial and insurance planning
- Fish and agricultural products
- Daycare services
Canada VAT Refund & GST Rebate
- Tax refunds (Rebates): Available to those who meet the eligibility requirements or who have not paid tax correctly.
- You don’t need to join the CRA in order to receive personal GST tax refunds.
- Businesses can apply for taxes credits on the use of input (ITCs) to recover the GST/HST they’ve paid on their expenses.
FAQs Canadian VAT Explained
Q: Which is the most current rate of GST in Canada? A: The GST rate for the federal government is 5.5 percent and there is an additional PST or HST that is based on the provincial.
Q: What are the tax on purchases made in Canada?
A: Every consumer is required to pay VAT when they purchase tax-exempt items or products and. Businesses collect the tax, and then pay taxes to the federal government.
Q: Can Canada’s tax be refunded to tourists?
A: No general system of refunds are currently in place for tourists since it was eliminated at the end of 2007. Refunds are only offered in specific commercial or diplomatic circumstances.
Q: Which tax rates are applicable for income earned within Canada?
A: Canada has progressive rates for personal income tax that vary between between 15 and 33 percent in addition to taxes for provincial residents.
Try Other VAT Calculators:
- US Sales Tax Calculator
- UK VAT Calculator – 20%
- France VAT Calculator – 20%, 10%, 5.5%
