VAT Rates in Canada

Everything you need to know about VAT rates in Canada: this guide explains Value-Added Tax, how it works, and the different rates that apply across Canada.

VAT Rates in Canada
VAT Rates in Canada

How much is VAT in Canada?

Value-added tax (VAT) is a consumption tax levied on selling goods and services in Canada. The federal government charges a 5% VAT, while the provinces charge between 0% and 10%.

VAT is generally included in the price of goods and services, so consumers usually do not see it listed separately on their bills. However, businesses that are registered for VAT must charge and remit the tax to the government.

Some goods and services are exempt from VAT, including medical services, child care, and most food products. For more information on which goods and services are subject to VAT, visit the Canada Revenue Agency website.

The amount of VAT you pay depends on the province in which you live. If you are a resident of Quebec, you would pay 9.975% VAT on most purchases. Residents of the other provinces and territories are subject to the 5% federal VAT.

Some businesses may also charge a provincial sales tax (PST) on top of the VAT. The PST is a separate tax that is not included in the price of goods and services. In Quebec, the PST is called the Quebec Sales Tax (QST) and is levied at a rate of 9.975%.

The GST/HST credit is a refundable tax credit that helps individuals and families with low and modest incomes offset the GST or HST they pay. If you are a resident of Quebec, you may be eligible for the Quebec Sales Tax Credit instead.

For more information on VAT in Canada, visit the Canada Revenue Agency website.

How to Calculate VAT in Canada?

To calculate VAT in Canada, you can use the VAT Calculator CA.

How Can VAT Rates in Canada be Found?

VAT Rates in Canada can be found using the following search queries: VAT rates in Canada, VAT rates in CA, Canada VAT rates, CA VAT rates, VAT in Canada, VAT in CA, VAT refund in Canada, and VAT refund in CA.

We think these three links are helpful and related to the VAT Rates in Canada: Canada - Corporate - Other taxes, Canada Indirect Tax Guide, and Sales taxes in Canada.