GST, HST, PST, QST: A 2026 Sales Tax Guide for Canadian Contractors

If you run a service business in Canada — contractor, electrician, plumber, landscaper, HVAC tech, consultant — figuring out which sales tax to charge on each invoice is one of the most confusing parts of the job. It depends on where your customer is, not where you are, and every province has a different mix.

This guide is a practical reference: what to charge, when you need to register, and how to keep your invoices clean. It's not legal advice — always double-check with the CRA or your accountant before filing.

The four taxes you'll see on Canadian invoices

| Tax | Full name | Administered by | Who it applies to | | --- | --- | --- | --- | | GST | Goods and Services Tax (5%) | CRA | Federal, applies across Canada | | HST | Harmonized Sales Tax | CRA | Provinces that merged GST with PST | | PST | Provincial Sales Tax | The province | BC, Saskatchewan, Manitoba | | QST | Quebec Sales Tax | Revenu Québec | Quebec only |

The basic idea: every province charges the 5% federal GST. Some provinces also layer a provincial sales tax on top — either combined into HST (one rate administered by the CRA), or charged separately as PST or QST.

Province-by-province breakdown (2026)

| Province / Territory | Combined rate | Breakdown | | --- | --- | --- | | Alberta | 5% | GST only | | British Columbia | 12% | 5% GST + 7% PST | | Manitoba | 12% | 5% GST + 7% PST (RST) | | New Brunswick | 15% | HST | | Newfoundland and Labrador | 15% | HST | | Northwest Territories | 5% | GST only | | Nova Scotia | 14% | HST (dropped from 15% in April 2025) | | Nunavut | 5% | GST only | | Ontario | 13% | HST | | Prince Edward Island | 15% | HST | | Quebec | 14.975% | 5% GST + 9.975% QST | | Saskatchewan | 11% | 5% GST + 6% PST | | Yukon | 5% | GST only |

Rates change. Before going live with your tax settings, verify on the CRA website or your province's revenue site.

The "place-of-supply" rule (the part that trips people up)

For most services, the tax you charge is based on where the work is performed or where the customer is located, not where your business is registered. If you're a BC-based contractor doing a job for an Ontario homeowner, you'll likely be charging Ontario HST (13%), not BC PST.

A few common scenarios:

• In-person service at a physical address — charge the rate of the province where the work happens.
• Remote/consulting service — generally charge based on the customer's billing address.
• Goods shipped to a customer — charge based on where the goods are delivered.
• Digital services to a Canadian customer — charge based on the customer's address.

If you work across provinces regularly, you'll end up charging different rates to different clients. A good invoicing app handles this automatically by letting you set the tax rate per client or per job.

When you need to register for GST/HST

The CRA's small supplier threshold is CA$30,000 of taxable revenue over four consecutive calendar quarters. Below that, you don't have to register, charge, or remit GST/HST — though you can choose to register voluntarily (which lets you claim input tax credits on your business expenses).

Once you cross the threshold:

1. You must register for a GST/HST number within 30 days of the sale that put you over.
2. You start charging GST/HST on taxable sales immediately from that sale onward.
3. You file returns (monthly, quarterly, or annually depending on your revenue).

PST and QST have their own registration thresholds and rules — Quebec's QST threshold mirrors the federal $30,000, but BC, Manitoba, and Saskatchewan each have their own PST registration rules (generally, once you have a taxable presence in the province).

What has to be on a compliant Canadian invoice

The CRA has specific requirements for invoices over $30 that your customer will need if they're claiming an input tax credit:

• Your business name and address
• Your GST/HST registration number (this is critical — without it, your customer can't claim ITCs)
• Invoice date
• A description of the goods or services
• Total amount charged
• The GST/HST rate applied and either the amount of tax or a statement like "price includes GST/HST"

For invoices over $150, add:

• Customer's name (or the name of their authorised agent)
• Terms of payment

Quebec has its own requirements via Revenu Québec — you'll need your QST registration number on the invoice as well.

How JustFacture handles this

JustFacture calculates GST, PST, HST, and QST automatically based on the province you set on each client or job. You can:

• Save your GST/HST and QST registration numbers once — they appear on every invoice.
• Set the default tax rate per client (useful when your customer base is concentrated in one province).
• Override the tax rate on a per-invoice basis when you're working out of province.
• Generate compliant PDF invoices in English or French, send by email, and track payment status.

If you're just getting started and not yet over the $30,000 threshold, you can also turn tax calculation off entirely and add it later — your invoices will still look professional and collect payment.

Common mistakes we see

1. Charging the wrong province's rate — use the customer's address, not yours.
2. Forgetting the GST/HST number on invoices — your customers can't claim ITCs without it.
3. Mixing PST and HST — these are mutually exclusive; a province has one or the other, never both.
4. Missing Quebec's extra rules — QST is administered by Revenu Québec separately from the CRA.
5. Not registering on time — the 30-day window after crossing $30,000 is strict.

TL;DR

• Every Canadian invoice includes 5% GST (federal), plus whatever provincial tax applies.
• The rate is based on where the work happens / where the customer is, not where you are.
• Register for GST/HST once you hit $30,000 in rolling four-quarter revenue.
• Include your GST/HST number on every invoice — your customer needs it.
• Use software that calculates this automatically so you stop losing time on tax math.

Ready to stop doing this by hand? Try JustFacture free for 30 days — we handle the tax math, generate compliant PDFs, and keep your invoices in one place across web, iOS, and Android.