Shipping Taxes In Canada

There is often confusion as to how taxes are applied to freight transportation services in Canada.
While GST/HST does not apply to any shipments that cross the border (international shipments),
it does apply to domestic shipments within Canada.

Revenue Canada applies a place of supply test to determine what types of GST/HST to apply to a typical transaction.
Simply stated, the tax rate used will be determined by where the freight delivers. For example, if the freight delivers to Ontario from B.C. an HST rate 13% will apply.
If however, a shipment from B.C. delivers to Nova Scotia the HST rate will be 15%

Rates change periodically from province to province so it is recommended that you consult a chartered general accountant to clarify current regulations.

Freight Cost Calculation Tool

British Columbia 5%
Alberta 5%
Saskatchewan 5%
Manitoba 5%
Ontario 13%
Quebec 5%*
New Brunswick 15%
Newfoundland 15%
Nova Scotia 15%
NT, NU, YT 5%
PEI 15%