If you're a freelancer or sole proprietor in Canada trying to understand PST vs GST vs HST, you're not alone. Canada has three different sales taxes, each with its own rules, rates, and registration requirements. This guide breaks down how they work and what you actually need to collect.
The three Canadian sales taxes
Canada's sales tax system is a patchwork. Depending on which province your customer is in (and what you sell), you may deal with one, two, or all three of these:
- GST (Goods and Services Tax): A 5% federal tax that applies across all of Canada. Every province has it.
- PST (Provincial Sales Tax): A separate provincial tax charged in BC (7%), Saskatchewan (6%), and Manitoba (7%). Quebec has its own version called the QST (9.975%).
- HST (Harmonized Sales Tax): A single combined federal-provincial tax used in Ontario (13%), Nova Scotia (15%), New Brunswick (15%), PEI (15%), and Newfoundland and Labrador (15%). Alberta, the Yukon, Northwest Territories, and Nunavut charge only the 5% GST — no provincial portion.
How PST differs from GST/HST
The key difference: GST and HST are administered by the CRA (federal government). PST is administered by each province separately. That means different registration systems, different rules, and different filing portals.
For most freelancers selling services, PST often doesn't apply — many provinces only charge PST on goods, not services. But the rules vary. BC, for example, charges PST on some software and digital services. Saskatchewan charges PST on most services. You need to check your specific province's rules.
GST/HST, on the other hand, applies to nearly all taxable supplies of goods and services across Canada. If you're a freelance developer, designer, consultant, or writer, GST/HST is the tax you'll almost certainly need to deal with once you cross the $30,000 threshold.
Which provinces charge what
Here's the full breakdown:
- HST provinces: Ontario (13%), Nova Scotia (15%), New Brunswick (15%), PEI (15%), Newfoundland and Labrador (15%)
- GST + PST provinces: British Columbia (5% + 7%), Saskatchewan (5% + 6%), Manitoba (5% + 7%)
- GST + QST: Quebec (5% + 9.975%)
- GST only: Alberta (5%), Yukon (5%), Northwest Territories (5%), Nunavut (5%)
What freelancers and sole proprietors need to register for
As a sole proprietor, your main obligation is GST/HST. Once your worldwide taxable supplies exceed $30,000 in any rolling 12-month period, you must register for a GST/HST number with the CRA and start collecting on your invoices.
PST registration is separate and depends on what you sell and where. If you sell physical goods into BC, Saskatchewan, or Manitoba, you may need to register with that province's tax authority. If you only sell services, you may be exempt from PST entirely — but check the specific provincial rules for your type of service.
In Quebec, you may need to register for QST separately with Revenu Québec if you make taxable supplies in that province.
How it works on your invoices
In HST provinces, life is simpler — you charge one combined rate. A $1,000 invoice to an Ontario client becomes $1,130 (including 13% HST).
In GST + PST provinces, you may need to show both taxes separately on the invoice. A $1,000 invoice to a BC client could be $1,000 + $50 GST + $70 PST = $1,120 — but only if PST applies to your type of supply.
For most service-based freelancers, you'll only charge and remit GST or HST. Learn how to set up a compliant invoice in our guide on invoicing with HST as a Canadian freelancer.
Place of supply rules
The rate you charge depends on the province where the supply is considered to be "made." For services, this is generally the customer's province. If you're a freelancer in Alberta (5% GST) invoicing a client in Ontario, you charge 13% HST — not 5%.
These "place of supply" rules can be complex for businesses that serve clients in multiple provinces. The CRA's guide RC4022 covers the detailed rules, but the general principle is: charge the rate that applies where your customer is located.
Tracking your GST/HST obligation
The most important thing for freelancers and sole proprietors is knowing when you cross the $30,000 GST/HST registration threshold. This is a rolling 12-month window, not a calendar year — and it's easy to miscalculate if you're not tracking it properly.
HST Hero tracks your rolling revenue automatically and shows you exactly how close you are to the threshold. Free for up to 10 transactions — so you'll know weeks in advance when it's time to register, not months after.
Key takeaways
- GST is a 5% federal tax that applies everywhere in Canada
- HST combines GST + provincial tax into one rate (used in ON, NS, NB, PE, NL)
- PST is a separate provincial tax in BC, SK, and MB — often doesn't apply to services
- Most freelancers only need to worry about GST/HST registration with the CRA
- Charge the rate based on your customer's province, not yours
- Register once you cross $30,000 in taxable supplies over any rolling 12 months