--- title: Which Sales Tax Do I Charge When Selling Out of Province? description: To determine which sales tax to apply, you need to use the Place of Supply Rules. These rules state that “To know which GST/HST rate to charge, a supplier has to know what type of supply they are making and where the supply is being made. image: https://www.koroll.ca/hubfs/Sales%20Tax%20Selling%20Out%20of%20Province-1.png --- [![Koroll & Company - Newmarket CPAs](https://www.koroll.ca/hs-fs/hubfs/images/Logos/koroll_blue.png?width=247&height=65&name=koroll_blue.png "Koroll & Company - Newmarket CPAs")](https://www.koroll.ca/) [![Certified Professional Accountants Newmarket](https://www.koroll.ca/hs-fs/hubfs/images/Logos/CPALogo_2014_notext_72.png?width=82&name=CPALogo_2014_notext_72.png "Certified Professional Accountants Newmarket")](https://www.cpacanada.ca/) ![AdobeStock_77939924_WM.jpeg](https://www.koroll.ca/hs-fs/hubfs/images/Banners/taxesBannerBlueStrip-1.jpg?width=2000&name=taxesBannerBlueStrip-1.jpg "AdobeStock_77939924_WM.jpeg") # Koroll & Company Blog - [Tax Deductions (118)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-deductions) - [Tax Tips (88)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-tips) - [CRA (85)](https://www.koroll.ca/koroll-and-company-blog/topic/cra) - [Corporate (84)](https://www.koroll.ca/koroll-and-company-blog/topic/corporate) - [Small Business (61)](https://www.koroll.ca/koroll-and-company-blog/topic/small-business) - [Pension Plans (30)](https://www.koroll.ca/koroll-and-company-blog/topic/pension-plans) - [RRSP (22)](https://www.koroll.ca/koroll-and-company-blog/topic/rrsp) - [Education (14)](https://www.koroll.ca/koroll-and-company-blog/topic/education) - [TFSA (14)](https://www.koroll.ca/koroll-and-company-blog/topic/tfsa) - [Real Estate (13)](https://www.koroll.ca/koroll-and-company-blog/topic/real-estate) - [COVID-19 Updates (7)](https://www.koroll.ca/koroll-and-company-blog/topic/covid-19-updates) - [E-Commerce (2)](https://www.koroll.ca/koroll-and-company-blog/topic/e-commerce) - [Internet (2)](https://www.koroll.ca/koroll-and-company-blog/topic/internet) - ["Ontario Budget" (1)](https://www.koroll.ca/koroll-and-company-blog/topic/ontario-budget) - [Insider (1)](https://www.koroll.ca/koroll-and-company-blog/topic/insider) [see all](https://www.koroll.ca/koroll-and-company-blog/which-sales-tax-do-i-charge-when-selling-out-of-province#) ## [Which Sales Tax Do I Charge When Selling Out of Province?](https://www.koroll.ca/koroll-and-company-blog/which-sales-tax-do-i-charge-when-selling-out-of-province) [fa icon="calendar"] Oct 4, 2021 8:57:14 AM / by [Allen Koroll](https://www.koroll.ca/koroll-and-company-blog/author/allen-koroll) - [Tweet](https://twitter.com/share) ![Sales Tax Selling Out of Province](https://www.koroll.ca/hs-fs/hubfs/Sales%20Tax%20Selling%20Out%20of%20Province.png?width=1200&name=Sales%20Tax%20Selling%20Out%20of%20Province.png)If you have set up shop in Ontario and only sell to customers in Ontario, sales tax is straightforward. But what happens when you start shipping goods to other provinces that have different rates of HST or use GST and PST instead? Your [business tax](https://www.koroll.ca/business-advisory) starts to become more complex! To determine which sales tax to apply, you need to use the Place of Supply Rules. These rules state that “To know which GST/HST rate to charge, a supplier has to know **what type of supply they are making** and **where the supply is being made**. The place where a supply is made is referred to as the place of supply.” **The first part of this is the type of supply. ** There are three main types of supply:  1. Taxable Supplies (other than zero-rated) – most products and services are taxable supplies, which means they are subject to GST/HST.  2. Zero-Rated Supplies – zero-rated supplies are taxable supplies with a 0% GST/HST tax rate. This means the government has set the tax rate to 0% and you don’t have to pay tax on these supplies. Examples of zero-rated items are groceries, prescription drugs and some medical devices.  3. Exempt – GST/HST does not apply to exempt items. Examples of exempt items include child care services, legal aid, music lessons and insurance policies.  *NOTE: As a GST/HST registrant it is important to know which of your items are zer-rated and which are exempt. While you won’t have to remit sales tax on either, you can only claim ITCs on GST/HST paid if you make zero-rated goods. * **The second part is where the supply is being made. ** Simply put, this means that you have to charge the sales tax of the province where the product ends up. So if a customer comes to your store in Ontario, you charge Ontario sales tax. If you ship or deliver the product to a customer in another province, you use the sales tax of the province you shipped or delivered to.   Here are the current sales for all Canadian Provinces and Territories: Alberta – 5% GST British Columbia – 12% (5% GST, 7% PST) Manitoba – 12% (5% GST, 7% PST) New Brunswick – 15% HST Newfoundland and Labrador – 15% HST Northwest Territories – 5% GST Nova Scotia – 15% HST Nunavut – 5% GST Prince Edward Island – 15% HST Quebec – 14.975% (5% GST, 9.975% QST) Saskatchewan – 11% (5% GST, 6% PST) Yukon – 5% GST This is a simplified explanation of how the Place of Supply Rules apply to the sales of goods and there are some special cases that are subject to different rules.  For more information on the special situations or for help determining how to apply sales tax to your sales, visit [Canada.ca](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4405/gst-hst-rulings-experts-gst-hst-legislation.html) or [contact the Koroll & Company team of chartered professional accountants today](https://www.koroll.ca/contact-us). 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So give us a call and speak to a friendly staff member from Koroll & Company today! 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