Commodity tax considerations

In addition to income, the supply of most goods and services is taxed in Canada. A consumption tax is levied at each of the federal and provincial levels, except in Alberta where no consumption tax is imposed by the province. Moreover, the governments of the Canadian territories (Northwest Territories, Nunavut and Yukon) do not levy a consumption tax. Some provinces have combined their respective provincial sales taxes with the federal tax to create a harmonized sales tax that is administered centrally by the Government of Canada. In addition, most provinces levy a tax when land is transferred. In all circumstances, each province has its own regime by which land transfer taxes are levied. This section provides a broad overview of the federal and provincial regimes.

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