The GST/HST is a sales tax on supplies of most goods and services in Canada, as well as many supplies of real property and intangible personal property. Businesses are responsible for collecting and remitting the GST/HST they charge to clients and can generally claim input tax credits (ITCs) on GST/HST paid on purchases used in commercial activities.
For example, an Ontario-based graphic design studio charges HST of 13% on all invoices to Canadian clients, collects $13,000 in HST over the quarter, and remits it to the CRA after claiming $3,200 in input tax credits on its own business purchases.
.avif)
.svg){kind=small}