PST (Provincial Sales Tax)
PST is a provincial sales tax levied separately from the federal GST. British Columbia charges 7%, Saskatchewan charges 6%, and Manitoba charges 7% (called Retail Sales Tax, or RST). Unlike the HST, PST is administered by the provincial government, not the CRA.
PST rules and exemptions vary by province. Generally, PST applies to tangible personal property and some services, but the specific items taxed and the exemptions differ. For example, BC exempts food, children's clothing, and bicycles from PST, while Saskatchewan exempts children's clothing but taxes restaurant meals.
Businesses operating in PST provinces must register separately with the provincial tax authority and file PST returns on a different schedule than their GST returns. This creates additional compliance burden compared to HST provinces, which is one reason some business groups advocate for HST adoption in remaining PST provinces.
Related Terms
GST (Goods and Services Tax)
The GST is a 5% federal value-added tax applied to most goods and services sold in Canada.
HST (Harmonized Sales Tax)
HST combines the 5% federal GST with a provincial portion into a single harmonized tax, simplifying compliance for businesses operating in multiple provinces.
QST (Quebec Sales Tax)
The QST is Quebec's provincial sales tax at 9.