Canadian retail compliance requirements in the five most populous provinces

Retailers in Canada must uphold Canadian retail legislation in order to maintain Canadian retail compliance. There are several types of retail tax in Canada—Goods and Services Tax (GST), Harmonized Sales Tax (HST) and Provincial Sales Tax (PST). Combinations of taxes vary between provinces, as do the laws pertaining to government holidays and store hours. Here is a breakdown of the legislation pertaining to the country’s five most populated provinces:

Alberta
Albertan retailers are not required to collect sales tax on goods and services beyond the 5 percent GST. There are no restrictions preventing retailers from opening on government holidays.

British Columbia
British Columbia is an HST-participating province. HST combines PST and GST to create a single tax, which, in B.C., is collected at a rate of 12 percent. Businesses in B.C. are permitted to open on holidays as long as they pay their workers according to law.

Manitoba
Manitoban retailers must collect 5 percent GST, as well as a 7 percent RST on retail price only. Most retail businesses are not permitted to open on New Year’s Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day or Christmas Day. Those based in Winnipeg or other municipalities with by-laws that exempt them from these rules are allowed to open on Sundays and designated holidays (not New Year’s Day, Good Friday, Easter Sunday, Canada Day, Labour Day or Christmas Day), albeit only between noon and 6 p.m. Those in non-exempt areas may operate on Sundays and holidays with four or fewer workers.

Ontario
Like Alberta, Ontario is an HST-participating province. Retailers in Ontario must collect sales tax at a rate of 13 percent. Most retail stores are restricted from opening on New Year’s Day, Family Day, Good Friday, Easter Sunday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day and Christmas Day. However, there are exceptions—book or magazine stores under 2,400 square feet with a maximum of three employees, pharmacies under 7,500 square feet, gas stations, flower shops and eligible stores involved in the development or maintenance of tourism.

Quebec
Quebec’s retailers are required to collect 5 percent GST. A 9.5 percent PST known as the QST (Quebec Sales Tax) is then applied to the retail price, including the GST. Most retailers are not permitted to open on New Year’s Day, Easter Sunday, St. Jean Baptiste Day, Canada Day, Labour Day and Christmas Day.