GST, HST, and PST on Canadian Business Receipts Explained

Canada has one of the more complex sales tax systems in the world. Depending on which province a purchase is made in, you might see GST alone, HST (which combines federal and provincial tax into one line), or both GST and PST as separate lines. Quebec adds TPS (the French-language name for GST) and TVQ (the provincial equivalent of PST).

For business owners, reading these taxes correctly matters — especially if you’re registered for GST/HST and want to claim Input Tax Credits (ITCs) to recover the tax you paid on business purchases.

The three types of Canadian sales tax

GST — Goods and Services Tax

GST is the federal tax that applies across all of Canada. The current rate is 5%. It appears on receipts in provinces that have not combined their provincial tax with GST into HST. You’ll see “GST” as a separate line on receipts in Alberta, British Columbia, Saskatchewan, Manitoba, and the territories.

HST — Harmonized Sales Tax

HST combines the federal GST (5%) with a provincial component into a single tax. Provinces that use HST:

Province	HST Rate
Ontario	13%
Nova Scotia	15%
New Brunswick	15%
Newfoundland & Labrador	15%
Prince Edward Island	15%

In these provinces, you’ll see a single “HST” line on receipts rather than separate GST and PST lines.

PST — Provincial Sales Tax

PST is a separate provincial tax applied on top of GST in provinces that haven’t adopted HST. Current PST rates:

Province	PST Rate
British Columbia	7%
Saskatchewan	6%
Manitoba	7%

Alberta and the territories have no provincial sales tax. Residents there only pay the 5% GST.

TPS and TVQ — Quebec

Quebec uses French-language designations for its taxes:

TPS (Taxe sur les produits et services) = GST, 5%
TVQ (Taxe de vente du Québec) = Quebec Sales Tax, 9.975%

Quebec receipts will show two separate tax lines: TPS and TVQ. When entering these into an expense spreadsheet, treat them the same as GST and PST from other provinces.

How taxes appear on receipts

Being able to identify the tax lines on a receipt is important for accurate record-keeping. Here’s what to look for:

Ontario (HST) receipt example

Subtotal: $45.00
HST 13%: $5.85
Total: $50.85

BC receipt example

Subtotal: $45.00
GST 5%: $2.25
PST 7%: $3.15
Total: $50.40

Quebec receipt example

Sous-total: 45,00 $
TPS 5%: 2,25 $
TVQ 9,975%: 4,49 $
Total: 51,74 $

Alberta receipt example

Subtotal: $45.00
GST 5%: $2.25
Total: $47.25

What is a net amount (before tax)?

The net amount (also called the subtotal or pre-tax amount) is the price of goods or services before any sales tax is applied. This is the amount that goes in your expense spreadsheet as the deductible business expense. For example, if you bought office supplies for $50.40 in BC (including $2.25 GST and $3.15 PST), the net amount is $45.00.

Your accountant needs the net amount separated from the tax amounts — especially to calculate ITCs if you’re registered for GST/HST.

Input Tax Credits (ITCs): recovering the GST/HST you paid

If your business is registered for GST/HST (required once your taxable revenues exceed $30,000 in a calendar quarter or over four consecutive quarters), you can claim Input Tax Credits to recover the GST or HST portion of your business expenses.

Key points about ITCs:

You can claim ITCs for GST/HST paid on goods and services used in your business
In HST provinces, you claim the full HST amount (both federal and provincial portions)
In BC, Saskatchewan, and Manitoba, you can only claim ITCs for the GST portion — not the PST. PST is a non-recoverable cost
In Quebec, you claim the TPS as an ITC through CRA, and the TVQ as an ITC separately through Revenu Québec (QST registrants)
For Alberta and territories, you claim the 5% GST

To claim ITCs, you need to file a GST/HST return (typically quarterly or annually). The CRA requires you to keep receipts showing the supplier’s name, their GST/HST registration number, the date, the tax amount, and the nature of the purchase.

When you don’t need to track taxes separately

If you are not registered for GST/HST (i.e., your revenues are under the $30,000 threshold), you do not file GST returns and cannot claim ITCs. In that case, you can record the full invoice amount (net + taxes) as your expense. You still need the receipt for the deduction, but you don’t need to separate the tax lines.

Once you cross the threshold and register, separating taxes becomes important for your GST filing.

How receipts2excel.ca handles Canadian taxes

When you upload receipt photos to receipts2excel.ca, the AI reads the exact tax labels and amounts printed on each receipt — it doesn’t calculate or infer taxes. So if a receipt shows “TPS $2.25” and “TVQ $4.49”, those exact labels and amounts appear in the Tax 1 Name/Amount and Tax 2 Name/Amount columns of your Excel file. A receipt showing only “HST $5.85” will have that single tax line recorded in Tax 1, with Tax 2 left empty.

This makes it easy to separate your tax amounts when preparing your GST return, regardless of which province the receipts came from.

Understanding GST, HST, and PST on Your Canadian Business Receipts