Important - Sales Tax on Postal Services (GST/HST)

From Canada Post -

Collection of Sales Taxes

Most Canada Post goods and services are subject to the Federal Goods and Services Tax (GST), and to the Provincial Sales Tax (PST or QST) or to the Harmonized Sales Tax (HST), where applicable.

Effective July 1st, 2010, Canada Post goods and services will be subject to Ontario and British Columbia HST at the rate of 13% and 12%, respectively.

There are certain items sold by Canada Post that are not taxable such as postal Money Orders, the fee on a Money Order and the exchange on a Money Order. Certain Provincial governments and their entities and certain Indian Bands and Natives are exempt from paying sales taxes.

Tax rules relating to items mailed to foreign destinations and Canadian Forces Post Offices are as follows:

not subject to sales taxes if the total price per transaction (single or multiple items) is $5.00 or more
if less than $5.00, subject to GST and QST if mailed from Quebec, HST if mailed from Ontario, British Columbia, New Brunswick, Nova Scotia or Newfoundland and Labrador, and GST only if mailed from the other provinces and territories.

Tax rules relating to interprovincial (consumer) Lettermail™ and (consumer) Parcel services are as follows:

subject to GST only if mailed from Manitoba, Prince Edward Island, Saskatchewan, Alberta or the Territories
subject to GST only if mailed from Ontario, British Columbia, Quebec, New Brunswick, Nova Scotia or Newfoundland and Labrador, and the total price per transaction (single or multiple items) is $5.00 or more and taken at the counter at the time of payment
if the total is less than $5.00, subject to GST and QST if mailed from Quebec, and HST if mailed from Ontario, British Columbia, New Brunswick, Nova Scotia or Newfoundland and Labrador.

Tax rules relating to interprovincial Priority™ Next A.M., Xpresspost™ and (commercial) Parcel services are as follows:

subject to HST if mailed to Ontario, British Columbia, New Brunswick, Nova Scotia or Newfoundland and Labrador regardless of total price per transaction
subject to GST only if mailed to the other provinces and territories.

Tax rules relating to interprovincial (commercial) Lettermail service, where a postal indicia is used, as well as Addressed Admail™, Unaddressed Admail™ and Publications Mail™ services are as follows:

subject to GST and QST if inducted in Quebec
subject to HST if inducted in Ontario, British Columbia, New Brunswick, Nova Scotia or Newfoundland and Labrador
subject to GST only if inducted in the other provinces and territories.

Now you know....
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Important - Sales Tax on Postal Services (GST/HST)

Thanks for researching and posting this.

Since 98% of our mailing are to outside of Canada, we never bothered claiming the GST on CAD postage (aside from receipts for stamps). Perhaps we shall start now.

Bernie
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