Most Canada Post goods and services are subject to the Federal Goods and Services Tax (GST), and to the Provincial Sales Tax (PST or QST) or to the Harmonized Sales Tax (HST), where applicable.
Effective April 1st, 2013, Canada Post goods and services will be subject to Prince Edward Island HST at the rate of 14%. Also on this date, Canada Post goods and services sold in British Columbia will be subject to GST at the rate of 5% and PST at the rate of 7%, where applicable.
There are certain items sold by Canada Post that are not taxable such as postal Money Orders, the fee on a Money Order and the exchange on a Money Order. Certain Provincial governments and their entities and certain Indian Bands and Natives are exempt from paying sales taxes.
Tax rules relating to items mailed to foreign destinations and Canadian Forces Post Offices are as follows:
- not subject to sales taxes if the total price per transaction (single or multiple items) is $5.00 or more
- if less than $5.00, subject to GST and QST if mailed from Quebec, HST if mailed from Ontario, Prince Edward Island, New Brunswick, Nova Scotia or Newfoundland and Labrador, and GST only if mailed from the other provinces and territories.
Tax rules relating to interprovincial (consumer) Lettermail™ and (consumer) Parcel services are as follows:
- subject to GST only if mailed from Manitoba, British Columbia, Saskatchewan, Alberta or the Territories
- subject to GST only if mailed from Ontario, Prince Edward Island, New Brunswick, Nova Scotia or Newfoundland and Labrador to Quebec, Manitoba, British Columbia, Saskatchewan, Alberta or the Territories, and the total price per transaction (single or multiple items) is $5.00 or more and taken at the counter at the time of payment
- if the total is less than $5.00, HST if mailed from Ontario, Prince Edward Island, New Brunswick, Nova Scotia or Newfoundland and Labrador
- subject to GST only if mailed from Quebec and the total price per transaction is $5.00 more and taken at the counter at time of purchase
- if the total is less than $5.00, GST and QST
Tax rules relating to interprovincial Priority™, Xpresspost™ and (commercial) Parcel services are as follows:
- subject to HST if mailed to Ontario, Prince Edward Island, New Brunswick, Nova Scotia or Newfoundland and Labrador regardless of total price per transaction
- subject to GST only if mailed to the other provinces and territories.
Tax rules relating to interprovincial (commercial) Lettermail service, where a postal indicia is used, as well as Addressed Admail™, Unaddressed Admail™ and Publications Mail™ services are as follows:
- subject to GST and QST if inducted in Quebec
- subject to HST if inducted in Ontario, Prince Edward Island, New Brunswick, Nova Scotia or Newfoundland and Labrador
- subject to GST only if inducted in the other provinces and territories.
Lettermail™, Priority™, Xpresspost™, Addressed Admail™, Unaddressed Admail™ and Publications Mail™ are trademarks of Canada Post Corporation.
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