Canada

Canada’s tax system is administered by the Canada Revenue Agency (CRA). The country uses a multi-layered sales tax system consisting of the federal Goods and Services Tax (GST) and various provincial taxes.

The Harmonized Sales Tax (HST) combines GST and provincial sales tax in participating provinces. Non-participating provinces levy a separate Provincial Sales Tax (PST) at varying rates. Zero-rated supplies include basic groceries, agricultural products, and exports. Exempt supplies include certain financial services, educational services, and healthcare services.

Businesses with annual taxable revenues exceeding CAD 30,000 must register for GST/HST. Tax identification is through the Business Number (BN) assigned by the CRA. Canada supports both credit notes and debit notes for invoice corrections.

Base Details

Key	Value
Tax Country Code	CA
Currency	CAD
Base Time Zone	America/Toronto

Tax Categories

Code	Name	Title
GST	GST	General Sales Tax
HST	HST	Harmonized Sales Tax
PST	PST	Provincial Sales Tax

GST Rates

Rate	Keys	Name	Percents	Description
zero		Zero Rate	0.0%	Some supplies are zero-rated under the GST, mainly: basic groceries, agricultural products, farm livestock, most fishery products such, prescription drugs and drug-dispensing services, certain medical devices, feminine hygiene products, exports, many transportation services where the origin or destination is outside Canada
general		General rate	5%	For the majority of sales of goods and services: it applies to all products or services for which no other rate is expressly provided.

Correction Definitions

Auto-generation of corrective invoices or credit and debit notes is supported.

Invoice Types

The types of invoices that can be created with a preceding definition:

• credit-note
• debit-note