A Simple Way to Calculate GST
Welcome to the Canada GST calculator built by the 1StopVAT tool. This Canada GST Tax calculator will help you figure out what GST percentage you should add when selling to customers in Canada. But first, let’s begin by clarifying some general terms and concepts of the topic.
What is the Canadian GST?
The VAT equivalent in Canada is the GST and several other taxes — HST, QST, and PST. The GST, or the general sales tax, is the federal tax, while the HST, or the harmonized sales tax, blends a federal component (normally at 5%) with a provincial one (at 8 or 10%)
Not all goods or services are taxed with the GST and some organizations are exempt from the tax. For example, among zero-rated supplies are basic groceries, agricultural products, medical devices, feminine hygiene products, etc. Some supplies are exempt completely, among them are services like child care, legal aid, music lessons, domestic work, etc.
The GST works just like VAT when it comes to tax registration, too. In Canada, companies have to become registered GST payers once their value of taxable sales exceeds CAD 30,000 in the last year. Voluntary registration for companies below the threshold is also possible. Foreign companies, if selling in Canada, may also be required to register for GST. However, these rules vary for GST, QST, and PST, so it is best to consult taxation specialists when selling in the country.
What is a GST calculator Canada?
A Canada GST calculator is a tool that helps figure out the specific rate that needs to be charged to customers in the jurisdiction. A GST calculator Canada can take several forms. For example, one could use a spreadsheet with the standard rates filled in to calculate the taxable amounts. However, the easiest way to figure out the exact GST or HST percentage is to use a Canada GST calculator online.
What is the GST rate in Canada?
The standard GST rate in Canada is 5% or 0% when reduced. The HST ranges from 13% to 15%. Several provinces have their own value-added tax. In Quebec, the tax is called QST and is set at 9.975% (or 0% when reduced). British Columbia, Saskatchewan, and Manitoba have a provincial sales tax — PST — which ranges from 6% to 8%, with exceptions for certain goods when the tax reaches up to 20%.
Historically, these rates have been changing quite frequently, with the tendency to increase. Online calculators include the most recent tax percentages and can help find out the taxable amount in no time. Therefore, a GST calculator online Canada is the most frequently used tool to figure out the tax.
1StopVAT Canada online GST calculator
To use our GST Rate Calculator Canada, you will need to know the municipality where your sales happen, or customers live. With this data, our GST calculator in Canada will retrieve the taxable amount and show you the detailed information.
Thank you for visiting the 1StopVAT’s Canada GST calculator online. We hope that our tool was helpful. If you have additional questions about the tax or using the online GST calculator Canada, please get in touch with our team, and we will consult you personally.