Hst how does it work

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Thank you for your patience. Unfortunately, in practice, the HST can often complicate companies' lives instead. While the aim was to create a national sales tax, the Canadian government made adoption of the HST optional—and many provinces opted not to, keeping their separate systems and rates instead.

Five of Canada's 13 provinces use the harmonized sales tax:. Several others apply only the federal goods and services sales tax and do not impose local sales taxes: Alberta, Northwest Territories, Nunavut, and Yukon. It is the responsibility of Canadian business owners located in one of the five provinces to collect and remit the HST. So the exact amount of HST could differ, depending on which of the five provinces a business operates.

While many goods and services are subject to HST, some are zero-rated or tax-exempt. These include products like basic groceries, books, and many agricultural and fishery goods. Foreign purchasers of Canadian products do not have to pay HST provided that the goods or services will be solely used outside of the country.

However, non-residents visiting Canada, such as tourists, are required to pay HST. In some cases, they may qualify for an HST rebate. There is still a constant debate as to how the HST impacts consumers and taxpayers. Critics claim that the HST shifts the tax burden from businesses to consumers. Proponents of HST argue that it actually lowers taxes.

They say the HST system reduces the cost of doing business, which effectively lowers the prices of consumer goods and services. Retail Council of Canada.

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