Canada GST/HST/PST/QST Tax

What is GST?

GST is the abbreviation of Goods and Services Tax, which is a federal sales tax.  GST applies to most supplies of goods and services made in Canada.

GST/HST is a recoverable tax, and GST/HST registrants can generally claim an input tax credit (“ITC”) on GST/HST incurred in the course of a commercial activity. In other words, GST/HST is usually not a net cost to registered entities (businesses).

What is HST?

HST is the abbreviation of Harmonized Sales Tax, which is a sales tax that includes both the federal GST and an additional provincial sales tax that has been combined with the federal GST. The HST is only applicable in participating provinces in Canada. Generally, HST applies to the same base of property (i.e., tangible and intangible) and services as GST, however at a different rate. The HST rate can vary from one participating province to another.

What is Provincial Level Sales Tax?

Provincial-level sales tax is typically referred to as PST or as QST in the case in Quebec. British Columbia, Manitoba, Quebec, and Saskatchewan all impose a provincial sales tax that is separate and in addition to the Canadian federal goods and services tax (GST). Like the GST, the PST and QST are imposed on most sales of goods and services.

The QST is a recoverable tax, similar to the GST, so QST registrants can generally claim an input tax credit (“ITC”) on QST incurred in the course of a commercial activity. In other words, QST is usually not a net cost to registered businesses.

The PST imposed by British Columbia, Manitoba, and Saskatchewan is not a recoverable tax. PST is a consumption tax, designed to be paid by the end-user of the product or service. Some exemptions may be applicable, such a resale exemption.

Canada GST will also be charged in each of these provinces where PST or QST is applied.

Who must pay PST/QST?

Generally, the customer must pay these provincial-level transactional taxes on taxable goods or services acquired in Canada from its supplier when the sale is into one of the four applicable provinces.

The supplier invoices and collects the taxes from the customer, and subsequently, the supplier remits the collected taxes to the government agency overseeing the tax.

Who must pay GST/HST?

Generally, the customer must pay GST/HST on taxable goods or services acquired in Canada from its supplier.

The supplier invoices and collects the GST/HST from the customer, and subsequently, the supplier remits the collected GST/HST to the government.

Where does GST/HST apply?

GST/HST generally applies to all taxable supplies made in Canada.

When does PST/QST apply?

Zoom uses the “sold to” address of the customer to determine which transaction taxes apply to a sale. Sales into one of the four previously mentioned provinces will required the respective PST/QST rate to apply.

What is a GST/HST account number?

A GST/HST account number is a unique 9-digit number activated by the Canada Revenue Agency that identifies a person as registrant for GST/HST purposes in Canada. The GST account number generally appears on invoices issued by the supplier.

Does Zoom have a GST/HST number?

Yes, Zoom's GST/HST registration number with the Canada Revenue Agency is 786568113 RT0001. This number appears on invoices issued by Zoom to Canadian customers.

What is a QST account number?

A QST account number is a unique 10-digit number issued by Revenue Quebec that identifies a person as a registrant for QST purposes in Quebec. Similar to a GST account number, the QST account number of the supplier should appear on invoices issued when QST is charged to allow the customer to recover the QST they paid. 

Does Zoom have a QST number?

Yes, Zoom’s QST number is 1227494057 TQ 0001. This number appears on invoices issued by Zoom to Quebec customers.

What is a PST-BC (British Columbia) account number?

A PST-BC account number is a unique 8-digit number issued by British Columbia Finance that identifies a company as a registrant for PST purposes in British Columbia.

Does Zoom have a PST-BC number?

Yes, Zoom's British Columbia PST number is 12477834.

What is a PST-MB (Manitoba) account number?

A PST-MB account number is a unique 7-digit number issued by Manitoba Finance that identifies a person as a registrant for PST purposes in Manitoba.

Does Zoom have a PST-MB number?

Yes, Zoom's Manitoba PST (RST) number is 119635-1.

What is a PST-SK (Saskatchewan) account number?

A PST-SK account number is a unique 7-digit number issued by Saskatchewan Finance that identifies a person as a registrant for PST purposes in Saskatchewan.

Does Zoom have a PST-SK number?

Yes, Zoom's Saskatchewan PST number is 7273121.

How is Zoom determining which customers GST/HST applies to?

Zoom will apply GST/HST if the location of the “Sold To” contact address entered by the customer is in Canada.

Can I claim an input tax credit for the PST and QST?

Only the QST imposed by Quebec is a creditable tax in which an input tax credit can be claimed by Quebec registered businesses. The PST in British Columbia, Manitoba, and Saskatchewan does not provide an input tax for PST paid by the customer.

Is there a minimum threshold purchase amount before PST/QST is applied?

No, PST/QST, in addition to the Canada GST, applies to sale of all Zoom’s services.

Is there a minimum threshold purchase amount before GST/HST is applied?

No, GST/HST applies to the sale of all Zoom’s services.

What exemptions are available?

Please submit your exemption certificate for our tax experts to review. Upon approval of your exemption certificate, all applicable taxes that are eligible for exemption will be refunded or credited to you.

Zoom periodically reviews customer exemption documentation to ensure that it remains valid. If, during these periodic validations, it is identified that your exemption documentation requires renewal, you may receive an email requesting you to provide updated tax exemption documentation. Further, if during these periodic validations, it is identified that your exemption documentation is not valid, Zoom may automatically update your account so that future invoices are subject to the applicable GST/HST and/or provincial taxes. Where this happens, GST/HST and/or applicable provincial taxes will be charged on all future invoices until such time that valid exemption documentation is provided.

You are required to notify us if there is a change to your tax exemption status.

What if I have a PST reseller account number/exemption form and forget to provide it?

Generally, PST will be applied to all invoices where the PST reseller account number/certificate has not been provided timely. However, if a valid PST reseller account number/certificate covering the service period can be provided, please reach out to Billing by chat within 30 days of the invoice issuance date.

Are there any special exemptions applicable for charities under which GST may not be charged?

No, there are not any exemptions available from the GST/HST applicable for charities. However, depending on their status, charities may be allowed to reclaim from the government a part of the GST/HST paid on their expenses.

Will GST/HST apply even if a Canadian company provides a valid GST/HST number to Zoom?

Yes, GST/HST applies to the sale of all Zoom’s services.  

Are there any GST/HST obligations for me as a customer?

No, the customer has no GST/HST obligations. If you want to claim an input tax credit for the GST/HST paid to Zoom, you should ensure to keep a copy of Zoom’s invoice for your record.