Accounting glossary
What is GST?
The federal Goods and Services Tax, 5% across Canada. Businesses over the small-supplier threshold must register, charge it, and remit the difference between GST collected and GST paid (input tax credits). In HST provinces it is blended into one rate; in Québec it runs beside QST.
Example
On a $100 sale in Alberta you charge 5% GST — $5.00 — and the customer pays $105.00. The $5.00 is not income; it is money you hold for the government.
If you paid $2.00 of GST on inputs that period, you remit $3.00 rather than $5.00. That difference is the input tax credit at work.
In SeroBooks
Applied per line by the place-of-supply engine, tracked for return-ready reporting. GST/HST calculator →
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