Federal and Provincial Sales Tax

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The Goods and Services Tax (GST) applies to most goods and services in Canada. Businesses are generally responsible for collecting the tax and remitting it to the government. GST is currently 5%. Provincial Sales Tax (PST) is a consumption tax. Like GST, it is paid by the consumer to the business. The business is then responsible for remitting it to the Government of Ontario. PST is currently 8%. Note that there are plans to switch to a Harmonized Sales Tax (HST) – one tax that will replace GST and PST – in June of 2010.

CANADA BUSINESS Services for Entrepreneurs – Taxes and GST (link .url)
This site provides a number of useful links regarding Taxes and GST.

CANADA REVENUE AGENCY – Goods and Services Tax (link .url)
This site contains a wealth of information about GST, including how to register a GST account.

ONTARIO MINISTRY OF REVENUE – Retail Sales Tax (link .url)
This site contains a wealth of information about PST, including how to register for a Retail Tax Vendor Permit.

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