Updated on 31 July 2026

Questions around HST in Canada are some of the most commonly received here at Accountor CPA. Navigating the HST meaning, when to register for HST as a business, and how to apply for a GST/HST account can be confusing and intimidating.

Only some provinces in Canada use HST, and businesses must follow the applicable rules around collection, Input Tax Credits (ITCs), reporting, and remittances. If you are new to a province or recently opened your own business, it’s important that you follow the correct set of rules when it comes to HST.

Get answers to all your HST questions with Accountor CPA!

HST Definition: What Does HST Mean?

HST stands for Harmonized Sales Tax. It is a consumption tax that combines the 5% federal goods and services tax (GST) with a provincial component in participating provinces. The Canada Revenue Agency (CRA) administers the HST and distributes the provincial portion to participating provinces.

The HST system in Canada was designed to simplify sales tax administration by combining federal and provincial sales taxes into a single harmonized tax. Businesses must still comply with applicable rules for collecting and remitting HST and claiming eligible Input Tax Credits (ITCs).

HST was first introduced in Atlantic Canada in 1997 and has not been adopted by all provinces and territories. Provinces and territories that do not use HST generally apply the 5% federal GST, with some provinces also imposing a separate provincial sales tax.

Currently, five provinces in Canada use HST: Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.

When Did HST Start in Ontario?

HST was launched in Ontario on July 1, 2010. It consists of a 5% federal portion and an 8% provincial portion, for a total HST rate of 13%.

Ontario has several categories of supplies for which consumers may pay no HST or a reduced amount of HST, including exempt supplies, zero-rated supplies, and goods eligible for Ontario point-of-sale rebates. Examples include:

• Certain health, medical, and dental services – exempt;
• Qualifying child care services – exempt;
• Certain tutoring services – exempt;
• Most financial services – exempt;
• Prescription drugs and drug-dispensing services – zero-rated;
• Feminine hygiene products – zero-rated;
• Children’s clothing and footwear – Ontario point-of-sale rebate;
• Qualifying books – Ontario point-of-sale rebate;
• Qualifying newspapers – Ontario point-of-sale rebate;
• Children’s car seats and booster seats – Ontario point-of-sale rebate;
• Qualifying prepared food and beverages of $4 or less – Ontario point-of-sale rebate.

Businesses must correctly determine whether their supplies are taxable, zero-rated, exempt, or eligible for a point-of-sale rebate when calculating and collecting GST/HST.

When Did HST Start (and End) in BC?

British Columbia presents a unique case for HST adoption in Canada. On July 1, 2010, British Columbia adopted an HST rate of 12%, with a 5% federal portion and a 7% provincial portion.

Opposition to HST in British Columbia led to a provincial referendum. The results were 54.73% in favour of ending HST in BC, leading to its reversal.

On April 1, 2013, British Columbia ended its HST system and reverted to a separate 5% GST and 7% PST.

Provinces without HST

British Columbia, Saskatchewan, Manitoba, and Quebec do not use HST. Instead, they apply the 5% federal GST alongside a separate provincial sales tax: PST in British Columbia and Saskatchewan, RST in Manitoba, and QST in Quebec.

Alberta, the Northwest Territories, Nunavut, and Yukon do not impose a general provincial or territorial sales tax and generally apply only the 5% federal GST to taxable supplies.

When to Register for HST

How Do You Know When Your Business Needs to Register for a GST/HST Account?

If your business’s worldwide taxable supplies, including taxable supplies made by your associates, exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters, you generally stop being a small supplier and must register for a GST/HST account. Taxable supplies generally include zero-rated supplies when determining whether you exceed the small supplier threshold.

If your taxable supplies are $30,000 or less, you are generally considered a small supplier and are not required to register for, collect, or remit GST/HST. However, different rules and thresholds may apply to certain organizations and activities.

Some small suppliers choose to register voluntarily for a GST/HST account. Registered businesses may generally claim Input Tax Credits (ITCs) to recover GST/HST paid or payable on eligible purchases and expenses related to their commercial activities. Small suppliers that choose not to register generally cannot claim ITCs.

Once registered, you must collect, report, and remit the applicable GST/HST on taxable supplies based on your assigned reporting period, which may be monthly, quarterly, or annually. The applicable GST/HST rate depends on the type of supply and the place-of-supply rules. Zero-rated supplies are taxable at 0%, while exempt supplies are not subject to GST/HST.

Most GST/HST registrants are also required to file their GST/HST returns electronically for reporting periods beginning in 2024 or later, subject to limited exceptions.

If you need help filing your HST return, the team at Accountor CPA can help.

How to Apply for a GST/HST Account in 2026

You can register for a GST/HST account through the CRA’s Business Registration Online (BRO) service. A GST/HST account is a CRA program account associated with your nine-digit Business Number (BN). If your business does not already have a BN, you can obtain one as part of the online registration process.

Before registering, you should have information such as:

• The effective date of registration;
• Your fiscal year for GST/HST purposes;
• Your total annual revenue;
• Basic information about your business and its activities.

When you register through Business Registration Online, you generally receive immediate confirmation of your registration.

Apply for a GST/HST Account and More with Accountor CPA

Looking for more information about how HST applies to your business or how to register for a GST/HST account? The team of tax experts at Accountor CPA can help.

We offer HST services to small businesses, SMEs, self-employed individuals, and large corporations across Canada. We are dedicated to helping you succeed through our year-round tax-planning strategies.

Learn more about the Input Tax Credits (ITCs) and other tax deductions your business may be eligible for. Contact us today for a free consultation for HST services.

Frequently Asked Questions (FAQs)

What Is the Harmonized Sales Tax (HST) in Canada?

The Harmonized Sales Tax (HST) is a consumption tax that combines the 5% federal Goods and Services Tax (GST) with a provincial component into a single tax. It applies in certain Canadian provinces.

Which Provinces Use the HST?

The provinces that use HST are Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.

What Are the Current HST Rates for Each Province?

As of 2026, the HST rates are:

• Ontario: 13%;
• New Brunswick: 15%;
• Newfoundland and Labrador: 15%;
• Nova Scotia: 14%;
• Prince Edward Island: 15%.

How Does HST Affect Small Businesses in Canada?

Businesses registered for GST/HST generally have to charge, collect, report, and remit the applicable GST/HST on their taxable supplies. Most businesses must register when their worldwide taxable supplies, including those of their associates, exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters.

Are There Any Goods or Services Exempt from HST?

Yes. Certain supplies are exempt from GST/HST, including long-term residential rent and many health and dental services. Other supplies, such as basic groceries and qualifying prescription drugs, are zero-rated at 0% rather than exempt.

How Do I Register for a GST/HST Account in Canada?

You can register for a GST/HST account through the CRA’s Business Registration Online (BRO) service. A GST/HST account is associated with your Business Number (BN). If you do not already have a BN, you can obtain one as part of the registration process.

Can I Claim Input Tax Credits (ITCs) for HST Paid on Business Expenses?

Yes. GST/HST registrants can generally claim Input Tax Credits (ITCs) to recover GST/HST paid or payable on eligible purchases and expenses related to their commercial activities, provided they meet the applicable CRA requirements and have the required documentation.

How Often Do Businesses Need to File HST Returns?

The assigned GST/HST reporting period generally depends on annual taxable supplies. Businesses with annual taxable supplies of $1.5 million or less are generally assigned an annual reporting period; those with more than $1.5 million up to $6 million are generally assigned a quarterly reporting period; and those with more than $6 million are generally assigned a monthly reporting period. Eligible businesses may choose certain more frequent reporting periods.

What Is the Difference Between HST and GST/PST?

HST combines the federal GST with a provincial component into a single harmonized tax. In provinces that do not use HST, the 5% federal GST may apply separately from a provincial sales tax, such as PST, RST, or QST, depending on the province.

How Does HST Impact Consumers in Participating Provinces?

Consumers in HST-participating provinces generally pay a single harmonized tax on taxable goods and services. The applicable HST rate depends on the province, while certain supplies may be zero-rated, exempt, or eligible for provincial point-of-sale rebates.