What is Provincial sales tax (PST)?

Three provinces charge their own retail sales tax alongside the 5% federal GST: British Columbia (PST, generally 7%), Saskatchewan (PST, generally 6%) and Manitoba (Retail Sales Tax, or RST, generally 7%). Québec has its own tax too, the QST, which works differently. The Atlantic provinces and Ontario do not have a separate PST because their provincial tax is harmonized into the HST. Alberta and the territories have no provincial sales tax.

PST is a single-stage tax collected on sales to the final consumer, administered by each province rather than the CRA. Businesses register with the province, collect PST on taxable sales, and file returns on that province’s schedule. Registration thresholds and rules differ, and out-of-province sellers, including online and digital businesses, can be required to register once their sales into the province reach certain levels.

Unlike GST/HST, PST paid on business purchases is generally not recoverable through input tax credits. Businesses instead avoid paying it on goods bought for resale by giving suppliers their PST number, and they may owe PST themselves (self-assessed) on taxable items bought for their own use without tax. What is taxable also varies: each province has its own lists of exempt items, special rates and rules for things like liquor, vehicles, software and services.