Canada Sales Tax - FAQ

If you are a Canadian External Worker providing services—either to clients in Canada or abroad—this guide explains when and how Canadian sales taxes (GST/HST/PST/QST) might apply to your invoices.

The Worksome platform automatically calculates and adds taxes, you typically do not need to add sales tax manually. The correct sales tax rate (if any) will be automatically applied to your payment request provided:
• You have informed Worksome of your correct location and registration status (e.g., GST/HST-registered or not).
• You are charging a client whose place of supply triggers Canadian sales tax.That said, always double-check your invoices to ensure accuracy, because if your taxable status or your client’s location is incorrect in the system, the automated calculation may be inaccurate.

Under Canadian rules, the place of supply generally dictates which jurisdiction’s sales tax rate applies. If the supply is deemed to occur in Canada:
• GST/HST applies at the federal level (5% GST or 13–15% HST in “harmonized” provinces).
• PST/QST may also apply in non-harmonized provinces (e.g., BC, Saskatchewan, Manitoba, Quebec) if local rules extend the tax to your service.Canadian Clients
When you are a Canadian worker supplying services to a Canadian-based client, it is highly likely that GST/HST—and possibly a provincial tax—will apply, unless the service is specifically exempt under the Excise Tax Act (e.g., certain financial, healthcare, or educational services).Foreign (Non-Canadian) Clients
When you provide services to a non-Canadian client:
• Many such services may be zero-rated—meaning they are taxed at 0%—provided the client is a non-resident with no physical presence in Canada and your service is “consumed” outside Canada.
• However, if the foreign client has a presence in Canada, or if the service is effectively performed/consumed in Canada, GST/HST may still apply.Important: “Zero-rated” differs from “exempt.” Under zero-rating, you charge 0% but can still claim input tax credits for related expenses if you are registered.

The rate depends on the place of supply, which can vary by province and territory. Typically:
• In HST-participating provinces (Ontario, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador), a single harmonized rate applies (13–15%).
• In other provinces (e.g., Alberta, British Columbia, Saskatchewan, Manitoba, Quebec), there may be:
• The 5% GST plus a provincial sales tax (PST/QST) if the rules in that province or territory apply to your service.
• An overview of sales tax rates can be found on the CRA website:
​Charge the GST/HST – Which rate to charge

• GST (Goods and Services Tax): A 5% federal tax that applies across Canada on most goods and services.
• HST (Harmonized Sales Tax): A single combined tax that merges the provincial sales tax portion with the 5% GST in participating provinces (e.g., Ontario, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador), resulting in a total rate of 13–15%.
• PST (Provincial Sales Tax): A separate provincial tax that may apply to goods and certain services in non-HST provinces (e.g., BC, Saskatchewan, Manitoba). Rates and rules vary by province.
• QST (Quebec Sales Tax): The Quebec-specific tax that generally applies to the same base as GST, with a current rate of 9.975%.

1. Verify if you must register: Know your revenue levels and ensure you register for GST/HST (and any provincial equivalents) if required.
2. Check your client’s location: Confirm whether they are in Canada or abroad—this determines if you charge tax, zero-rate it, or potentially do not charge at all.
3. Keep accurate records: Proper invoicing and record-keeping reduce the risk of audit issues.
4. When in doubt, seek advice: Tax regulations can be complex, especially with cross-border transactions. If uncertain, consult the Canada Revenue Agency (CRA) website or a tax professional.