Sales tax glossary
What is HST?
Harmonized sales tax (HST) is a single tax that combines Canada's federal GST with a province's sales tax. It applies in New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island, and it works like GST, with input tax credits for business purchases.
Example
A registered business ships an order to a customer in Ontario. It charges HST at Ontario's rate instead of GST alone, because Canadian sales tax generally depends on the province where the item is delivered.
Source: Canada Revenue Agency: GST/HST rates (opens in a new tab)
Why it matters for sellers
In Canada, the tax you charge depends on the customer's province. Sellers must apply GST, HST, or GST plus provincial sales tax correctly on each order.
Related terms
This definition is general information, not tax or legal advice. Rules vary by jurisdiction and change over time.
Free exposure assessment, no commitment.
See what sales tax is really costing you
30-minute walkthrough · No credit card required · See your own data live