What is VAT?

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What is value added tax? Is there VAT in Canada?

Rounding it up

  • VAT, or Value Added Tax, is a type of tax charged to goods and services in many countries.

  • Canada has a federal version of the VAT called the Goods and Services Tax (GST). On top of that, most provinces have a provincial version of VAT called PST or QST.

  • Some provinces combine their VAT with the GST to create the Harmonized Sales Tax (HST).

  • Consumer tax rates in Canada vary from as low as 5% to as high as 15%, though some goods and services are exempt from VAT-style taxes.

8 min read

Gaby Pilson
#tax#value added tax#VAT#sales tax

Gaby Pilson

Gaby Pilson is a writer, educator, travel guide, and lover of all things personal finance. She’s passionate about helping people feel empowered to take control of their financial lives by making investing, budgeting, and money-saving resources accessible to everyone.

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