Canadian Tax Rules
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Rules
CMS determines GST, HST, and QST requirements on an order based on the following rules:
- QST is applicable if the shipper and consignee are in Quebec (PQ/QC).
- HST is applicable if the consignee is in British Columbia (BC), Ontario (ON), New Brunswick (NB), Nova Scotia (NS), or Newfoundland (NF/NL).
- GST is applicable if the consignee is in any other Canadian province or territory.
However, these taxes will not apply if:
- Shipment originated or is destined outside of Canada.
- Customer is a transportation company, such as a freight forwarder, carrier, transport broker.
In Quebec, GST is called TPS (Taxe sur les Produits et Services) literally: tax on products and services." TPS is the same as GST, and TVQ is their provincial tax. TPS=GST, and TVQ=QST.
CMS Enforcement
CMS will set these tax types by default when a new order is created. It will also warn the user whenever an order is saved if one or more of the invoice lines has taxes set incorrectly. If the system configuration flag "Order: Enforce Canadian Tax Rules" is set, CMS will prevent the order from being saved unless the taxes are set correctly.
Confusion about HST
There has been some confusion about whether HST is applicable on loads originating in a province outside of British Columbia, Ontario, Nova Scotia, New Brunswick, or Newfoundland, but delivering in those provinces. According to the Revenue Canada website, these loads are HST applicable:
A supply of a freight transportation service is considered to be made in a province if the destination of the service is in that province.
Revenue Canada Agency - Place of supply rules for transportation services
Tax Summary Grid
