GST (Goods and Services Tax) is a Federal consumption tax and many products and services in Canada.
The GST rate is the same percentage across Canada. However, some provinces combine the GST with a provincial tax, and this is called the HST (Harmonized Sales Tax).
How Much is the GST in Alberta?
GST is %5 in Alberta. It is also 5 percent in other provinces such as B.C, Saskatchewan, Manitoba, Northwest Territories, Nunavut, Yukon, and Quebec.
While technically the GST is the same rate across Canada, some provinces combine their provincial tax with the GST to make a harmonized tax (HST).
The HST rate in Ontario is currently %13. In the provinces of New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, the HST rate is currently %15.
When was GST Introduced in Canada?
GST was first introduced in Canada on January 1st, 1991. It was created under the Brian Mulroney Conservative government. While it was enacted in 1991, it was debated and discussed beginning in the late 1980s.
The GST rate in 1991 was %7. This rate was dropped to %6 in 2006, then 5% in 2008. Both decreases took place while Stephen Harper was the Prime Minister of Canada.
A Full Timeline of the GST in Canada
In Summary
- The GST is 5 percent everywhere in Canada, however, some provinces have a harmonized sales tax (HST) that includes this amount.
- Alberta’s GST rate is 5 percent because Alberta does not use the HST method.
