The short answer
If you're registered for GST/HST and your load starts and ends in Canada, the delivery province sets the tax. If you deliver to Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador or Prince Edward Island, you charge that province's HST. If you deliver anywhere else in Canada, you charge 5% GST.
The pickup province, your head office and your customer's address don't change the rate.
GST and HST rates by delivery province
| Delivery province or territory | Tax |
|---|---|
| Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, Yukon | GST 5% |
| Ontario | HST 13% |
| Nova Scotia | HST 14% |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | HST 15% |
Examples on a $4,200 load
| Route | Tax | Amount |
|---|---|---|
| Calgary to Toronto | HST 13% | $546.00 |
| Toronto to Calgary | GST 5% | $210.00 |
| Montréal to Halifax | HST 14% | $588.00 |
| Vancouver to Moncton | HST 15% | $630.00 |
| Ottawa to Québec City | GST 5% | $210.00 |
| Montréal to Québec City | GST 5% + QST 9.975% | $210.00 + $418.95 |
On the same lane, the tax can change with the direction. Calgary to Toronto is 13%, but Toronto to Calgary is 5%. Check your own route with the freight GST/HST calculator.
Is there HST on freight in Ontario?
Yes, when you deliver in Ontario, wherever the pickup was. On a load from Alberta to Ontario, you charge 13% HST. On a load from Ontario to Manitoba, you charge 5% GST and no HST.
What counts as the destination
CRA says the destination is the place, named by the shipper, where the freight is handed over to the consignee (the receiver). You'll usually find it on the bill of lading. Your customer's billing address and your dispatch office don't count.
A load routed through the United States
If the load starts and ends in Canada, CRA treats it as a domestic move, even if part of the route goes through the US. You charge GST or HST by destination as usual.
Drops in more than one province
Split the charge by destination. CRA treats each destination as a separate service, for the part of the charge that reasonably belongs to it.
CRA's example: a Toronto shipper sends computers to Ottawa and Montréal. Ottawa is 40% of the charge and Montréal is 60%. You charge 13% HST on the first part and 5% GST on the second.
Which charges take the same tax
Anything that's part of the freight service, or comes with it, is taxed the same way as the freight:
- fuel surcharges
- loading and unloading
- storage, refrigeration and packing that are part of the move
- empty-mile charges tied to a specific move
There's no GST/HST on demurrage payments and penalties. A shipper pays these for holding a vehicle past the scheduled time.
When you don't charge GST or HST
- Cross-border moves are usually zero-rated.
- Subcontracted work for another carrier that bills the customer is zero-rated under the interlining rules.
- The Canadian leg of an export or import can be zero-rated if you have the right documents.
- You aren't registered. Only businesses registered for GST/HST collect it. CRA explains who has to register.
What to show on the invoice
Show the rate and the tax on a separate line, or state clearly that the total includes the tax. If HST applies, show the total rate, not the federal and provincial parts. Your GST/HST number must be on taxable invoices of $100 or more. The invoice generator lays this out for you.
This guide covers GST, HST and QST. British Columbia, Manitoba and Saskatchewan have their own provincial sales taxes and rules. Ask your accountant if you think they apply.
Sources
- CRA: GST/HST information for freight carriers
- CRA: GST/HST Memorandum 28-2, Freight Transportation Services
- CRA: GST/HST Memorandum 3-3-7, Place of Supply in a Province, Transportation
- CRA: GST/HST rates by province
- Revenu Québec: Freight Transportation Services
This guide doesn't replace the law or professional advice, and rules change. Check the sources above before you rely on it.