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.
| 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% |
| USA | NIL |