GST vs HST vs PST vs QST (simple breakdown)

The 4 main tax types

GST (Goods and Services Tax)

• Federal tax
• Rate: 5%
• Applies across Canada

👉 Used on its own in some provinces.

HST (Harmonized Sales Tax)

• Combined tax (GST + provincial portion)
• Single rate applied

Examples:

• Ontario — 13%
• Nova Scotia — 15%

👉 Simplifies tax into one line.

PST (Provincial Sales Tax)

• Provincial tax
• Applied separately from GST

Used in:

• British Columbia
• Manitoba
• Saskatchewan

👉 Appears as a separate line on invoices.

QST (Quebec Sales Tax)

• Quebec’s provincial tax
• Applied alongside GST

👉 Has its own rules and structure.

How taxes differ by province

HST provinces

• Single combined tax

GST only

• Alberta, territories

GST + PST

• Separate federal and provincial taxes

GST + QST

• Quebec-specific system

Why this matters

Using the wrong tax setup can:

• Lead to incorrect invoices
• Cause compliance issues
• Create confusion for your clients

How Lunio helps

Lunio automatically handles this for you:

• Applies the correct tax type based on province
• Calculates totals accurately
• Separates taxes where required
• Keeps your records organized

👉 No manual calculations needed.

Key takeaway

• Canada does not have one single tax system
• Tax type depends on the province
• Lunio handles GST, HST, PST, and QST automatically

What’s next?

• 👉 Learn how Lunio calculates taxes
• 👉 Learn how tax reports work
• 👉 Learn when to charge tax