If you’re starting or growing a small business in Alberta, you’ve probably come across the terms GST, HST, and PST—but what do they actually mean? And more importantly, which ones apply to your business?
In this guide, we’ll break down Canada’s complex sales tax system, what it means for Alberta-based businesses, and when (or if) you need to register, collect, and remit sales tax.
What Is GST, HST, and PST?
GST – Goods and Services Tax
- A federal tax applied across Canada.
- Standard rate: 5%
- Most businesses in Canada are required to collect GST on taxable goods and services.
PST – Provincial Sales Tax
- Charged by certain provinces (e.g., BC, Saskatchewan, Manitoba).
- Alberta does not charge PST.
HST – Harmonized Sales Tax
- A combined federal + provincial tax used in provinces like Ontario and Nova Scotia.
- Alberta does not use HST.
Do Alberta Businesses Need to Charge Sales Tax?
Yes — Alberta businesses must charge GST (5%) on most goods and services sold within Canada, but not HST or PST.
However, there are exceptions. For example:
- You don’t charge GST on zero-rated or exempt supplies
- You may not need to register for GST if your total revenue is under $30,000 in a 12-month period
What If My Customers Are in Other Provinces?
If you’re located in Alberta and selling to customers in another province, you generally charge GST only, unless:
- You have a physical presence or significant business activity in a province with HST or PST
- You’re selling digital goods or services (like online courses or software), in which case place of supply rules apply
What If I Sell to Customers in the U.S. or Internationally?
If you’re providing services or goods to customers outside Canada (e.g., U.S.-based clients), these may be considered zero-rated supplies — meaning you charge 0% GST, but you can still claim input tax credits on related business expenses.
When Do I Need to Register for GST?
You must register for a GST account with the CRA when:
- Your total taxable revenues (before expenses) exceed $30,000 over 4 consecutive calendar quarters
- Or, you voluntarily choose to register to claim input tax credits on expenses, which will entitle you to a GST Rebate.
At Kalim CPA, we help Alberta business owners determine when and how to register, and ensure they stay compliant with all CRA requirements.
How Do I Remit GST to the CRA?
Once registered, you’ll need to:
- Charge GST on your taxable sales
- Track your input tax credits
- File your GST return on a monthly, quarterly, or annual basis (depending on your situation)
We often see business owners fall behind on their GST filing—leading to penalties, interest, and stress. With our bookkeeping and tax filing services, we keep everything up-to-date and on time.
Final Thoughts
While Alberta’s tax system is simpler than other provinces (no PST or HST!), there are still complex sales tax rules that can affect how and where you charge GST—especially if you’re selling online, across provinces, or internationally.
Need Help Managing GST for Your Alberta Business?
At Kalim CPA, we support small businesses across Alberta with:
- GST registration & filings
- CRA compliance
- Corporate tax planning
- Cloud bookkeeping with QuickBooks or Xero
Book a free consultation today and get expert guidance on sales tax and beyond!
