GST/PST/HST on Canadian Imports
Last Updated: June 17, 2026
As an importer, you need to understand which taxes apply to your imported goods and when you must pay them. Imported goods are generally subject to the Goods and Services Tax (GST) or the federal portion of the Harmonized Sales Tax (HST), although certain goods qualify for specific exemptions.
Provincial taxes can also apply depending on the type of transaction, the province involved, and how the imported goods will be used. Certain products may also be subject to excise taxes or duties.
The Canada Revenue Agency (CRA) provides the current GST/HST rates and provincial sales tax rates, while the Canada Border Services Agency (CBSA) administers the collection of GST and other applicable duties and taxes at the border.
What is GST, PST, and HST?
GST, PST, and HST are consumption taxes that apply to different types of goods and services in Canada.
Goods and Services Tax (GST)
The GST is a federal value-added tax that applies at a rate of 5% to most taxable supplies in Canada.
Imported goods are generally subject to GST or the federal portion of HST at the time of importation. The tax applies unless the goods qualify as a non-taxable importation or another specific relief applies.
For imported goods, the CRA calculates the GST based on the Canadian-dollar value of the goods, including applicable customs duties and excise taxes. The CRA’s guidance on GST/HST for imported goods provides more information on the rules.
Provincial Sales Tax (PST)
PST is a provincial sales tax imposed in provinces that do not participate in the HST system.
The rate and application rules vary by province. Importers should not assume that PST never applies to commercial imports. Provincial tax obligations depend on the province, the type of goods, and how the goods are acquired or used.
The CRA’s current GST/HST calculator and rates also lists the PST rates for provinces that do not participate in HST.
Harmonized Sales Tax (HST)
HST combines the federal GST with a provincial component in participating provinces.
As of 2026, the HST rates are:
- New Brunswick: 15%
- Newfoundland and Labrador: 15%
- Nova Scotia: 14%
- Ontario: 13%
- Prince Edward Island: 15%
Nova Scotia reduced its HST rate from 15% to 14% effective April 1, 2025. The CRA confirms the current rate and provides the applicable transitional rules on its GST/HST rates page.
The remaining provinces and territories generally apply the 5% GST, with some also imposing their own provincial sales tax.
Do I need to pay GST on my Canadian imports?
Generally, yes. Goods imported into Canada are subject to GST or the federal portion of HST unless they qualify as non-taxable importations.
The CRA states that the tax is calculated on the Canadian-dollar value of the goods, including customs duty and excise tax, and collected at importation along with applicable duty and excise taxes.
The CRA’s list of non-taxable importations identifies specific goods that can receive GST/HST relief.
Who Pays GST on Canadian Imports?
The owner or importer of record is generally responsible for paying GST/HST on imported goods.
If you are registered for GST/HST and qualify under the CRA’s rules, you can generally claim an Input Tax Credit (ITC) for GST/HST paid on imported goods used in your commercial activities.
The CRA explains the requirements for claiming Input Tax Credits, including the records and supporting documentation that registrants need to maintain.
How do I calculate GST/PST/HST on my imported goods?
The GST payable at importation does not simply equal 5% of the purchase price.
The CRA states that GST or the federal portion of HST on imported goods is calculated on the Canadian-dollar value of the goods, including customs duty and excise tax.
For example, if imported goods have a value for tax of CAD $10,000 and no additional duty or excise tax applies, the 5% GST would be CAD $500.
The actual calculation can vary depending on the goods and the taxes or duties that apply. Importers can use the CRA’s GST/HST calculator and current rates when estimating applicable taxes.
How Does HST Apply to Commercial Imports?
The provincial component of HST does not generally apply at the border when commercial goods are imported into Canada. However, the treatment can depend on the circumstances and the destination of the goods.
The CRA explains that the provincial part of HST generally does not apply when commercial goods are imported for a participating province, but certain importers may have to self-assess the provincial component of HST.
For example, a GST/HST registrant may need to self-assess the provincial component when commercial goods are imported for use in a participating province. The importer reports the amount on its GST/HST return and may qualify for an ITC depending on the extent to which the goods are used in commercial activities.
Non-commercial imports follow different rules. In many cases, residents of a participating province importing taxable non-commercial goods must pay the applicable provincial component at the border.
When Do I Have to Register for GST/HST?
Most businesses must register for GST/HST once they stop qualifying as a small supplier and make taxable supplies in Canada.
For most businesses, the small-supplier threshold is $30,000. The CRA states that you generally remain a small supplier if you do not exceed $30,000 in taxable supplies over four consecutive calendar quarters.
If you exceed $30,000 in a single calendar quarter, you generally stop being a small supplier on the supply that causes you to exceed the threshold. You must register and begin charging GST/HST from the applicable effective date.
If you exceed the threshold over four consecutive calendar quarters without exceeding it in a single quarter, you generally stop being a small supplier at the end of the month following the quarter in which you exceeded the threshold.
You can also register voluntarily for a GST/HST account while you remain a small supplier if you make taxable supplies in Canada.
Once registered, you generally:
- Charge and collect GST/HST on taxable supplies
- File GST/HST returns
- Remit GST/HST collected to the CRA
- Claim eligible ITCs for GST/HST paid or payable on purchases and expenses used in commercial activities
What Other Taxes Can Apply to Canadian Imports?
GST/HST is not the only tax that can apply to imported goods.
Certain products may be subject to excise taxes or excise duties, including certain fuels, tobacco products, and alcohol products. The CRA provides information on excise taxes and duties.
Imported goods may also incur customs duties based on factors such as tariff classification, origin, value for duty, and eligibility under a Canadian free trade agreement.
Because GST is generally calculated on the value of the goods plus applicable customs duty and excise tax, customs duties can increase the amount of GST payable at importation.
Plan for GST, HST, and PST Before Importing
Understanding the tax treatment of your goods can help you estimate your landed costs and identify potential tax obligations before your shipment arrives.
The applicable treatment can depend on the goods, tariff classification, origin, value for duty, destination, and how the goods will be used. Reviewing the current federal and provincial requirements before importing can help you determine which taxes apply and whether you may qualify for available tax relief or ITCs.
Still have questions about GST/HST/PST and it’s applicability to your imports? Contact one of our Trade Experts , book a meeting with us below, to help you streamline your import process.
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