Guide
Sales tax on a quote, province by province
It is the question that comes up most, and the easiest one to get wrong. Here are the rates Devik applies, the calculation rule, and what has to appear on the document.
Three regimes, not thirteen
Despite thirteen provinces and territories, there are only three ways to tax a sale in Canada. Knowing which one applies to you settles most of it.
- HST — a single tax replacing GST and the provincial tax. New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Ontario.
- GST + QST — in Quebec, two separate taxes shown on separate lines.
- GST + PST — in British Columbia, Saskatchewan and Manitoba, two lines as well. In Alberta and the three territories, GST alone.
QST is no longer compounded on GST
It was before 2013, and the mistake survives in a lot of spreadsheets. Today each tax applies to the PRE-TAX amount, independently of the other.
On $1,000 of work in Quebec: GST $50.00 and QST $99.75, for a total of $1,149.75. Calculating QST on $1,050 would give $104.74 — nearly $5 too much per thousand dollars, and an invoice the client can rightly dispute.
The rates Devik applies
This table is the one the product uses to price your quotes. A test compares the two on every build: what you read here is what your quote will calculate.
| Province | Applicable taxes | Combined rate |
|---|---|---|
| New Brunswick | HST 15% | 15% |
| Nova Scotia | HST 15% | 15% |
| Prince Edward Island | HST 15% | 15% |
| Newfoundland and Labrador | HST 15% | 15% |
| Ontario | HST 13% | 13% |
| Quebec | GST 5% + QST 9.975% | 14.975% |
| Manitoba | GST 5% + PST 7% | 12% |
| Saskatchewan | GST 5% + PST 6% | 11% |
| British Columbia | GST 5% + PST 7% | 12% |
| Alberta | GST 5% | 5% |
| Yukon | GST 5% | 5% |
| Northwest Territories | GST 5% | 5% |
| Nunavut | GST 5% | 5% |
What has to appear on the document
A total is not enough. For a registered client to claim their input tax credit, and for yours to hold up under audit, the breakdown has to be readable.
- The pre-tax subtotal.
- Each tax on its own line, with its name and rate.
- Your tax registration number, when you are registered.
- The total payable including tax, stated as such.
Before or after tax: say which
A homeowner remembers the last number they read. If your quote says $12,000 and the invoice asks for $13,800, the conversation will be unpleasant even though you are right.
The rule that avoids every dispute: show the tax-included total large, and the breakdown right underneath. Devik does this by default on the quote and on the client portal.
This guide does not replace an accountant
The rates above are the product's, kept in step with the regime in force. But registration, input tax credits, the special rules attached to certain work, and your own situation belong to your accountant. Devik calculates; it does not advise.
FAQ
Do I charge tax if I am not registered?
No — and you must not. Registration becomes mandatory above a revenue threshold; below it, registering stays optional and is often worthwhile because it gives you credits on your purchases. That is a decision to make with your accountant.
Which tax applies to a job in another province?
As a general rule the place of supply governs, not your address. A New Brunswick contractor working in Quebec charges GST and QST. Devik applies the tax profile you select on the quote.
Do the rates change?
Rarely, but yes. They live in a table in the product, not in code: a rate change ships without you republishing or retyping anything.
Does tax apply to the deposit?
Yes. A deposit is an invoice like any other and carries its share of tax. That is why you split the pre-tax amount and apply tax afterwards — splitting the tax-included amount charges the tax twice.
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