GST/HST and PST for Canadian appliance repair bookings, province by province

What to take away

How GST/HST applies to appliance repair bookings in Canada

The goods and services tax (GST) and the harmonized sales tax (HST) apply to most appliance repair services in Canada. When you book a repair, the tax is based on the province where the repair takes place, not where your business is headquartered.

That means a shop in Ontario doing a repair in Alberta charges the Alberta rate. The Canada Revenue Agency (CRA) administers GST/HST for all provinces that use it.

For repair bookings, tax applies to both labour and parts. If you charge a diagnostic fee, that fee is also taxable. The only exceptions are supplies that are zero-rated or exempt, which are rare in appliance repair. Most residential and commercial repair jobs are taxable at the full rate.

Your invoice must show the GST/HST amount separately, along with your business number. The CRA expects you to keep records of each booking, including the address where the repair was done.

If you use a booking platform, it should capture the service address and apply the correct tax automatically. For a deeper look at how bookings affect your finances, see our guide to appliance repair operations.

Which rate applies in each province and territory

Each province and territory has its own rate, and the table below covers all thirteen. The CRA publishes the full list, and you can confirm the current rate using the official rate calculator.

Always verify the rate before you invoice, because provinces can change rates. The CRA's official rate calculator lets you enter the province and the amount to see the tax.

For a full list of rates, see the CRA page on charging and collecting GST/HST.

In Ontario, the HST applies to repair invoices and bookings. The Ontario government provides guidance on HST that explains how it applies to services. Repair shops in Toronto, Ottawa and other Ontario cities charge 13% on labour and parts.

PST in British Columbia, Saskatchewan and Manitoba alongside GST

British Columbia, Saskatchewan and Manitoba have a provincial sales tax (PST) that applies in addition to GST. If your repair shop has a physical presence in one of these provinces, you must register for PST and charge it on taxable repairs. The PST rate and rules vary by province.

In British Columbia, PST is 7% on most repair parts and labour. However, some repair services may be exempt if they are considered repairs to real property, but appliance repair is generally taxable. You must register with the BC Ministry of Finance if you have a permanent establishment in the province.

Saskatchewan's PST is 6% on repair services and parts. The province has specific rules about when to charge PST on labour versus parts, and you should check with the Saskatchewan Ministry of Finance for details. Manitoba charges 7% PST on repair services and parts, with similar registration requirements.

Registration thresholds are separate from the GST small supplier rule. A business with a permanent establishment in BC, Saskatchewan or Manitoba must register for PST before it makes its first taxable sale, with no minimum.

Without a permanent establishment, the test is sales volume. BC requires registration once taxable sales to BC customers pass $10,000 over 12 months. Saskatchewan sets the same $10,000 mark. Manitoba applies a similar 12 month test; Manitoba Finance publishes the current amount. Confirm the figure for your province before you invoice.

If you are based in another province but travel to these provinces to perform repairs, you may still need to register for PST if you have a sufficient presence. The rules are complex, so consult a tax professional. For pricing strategies that account for these taxes, see our pricing and profit guide.

Quebec: GST and QST for Montreal and Quebec City repair shops

Quebec uses a dual tax system: the federal GST (5%) and the provincial Quebec Sales Tax (QST) at 9.975%. Both apply to appliance repair bookings in Montreal, Quebec City and across the province. If your shop is in Quebec, you must register for GST with the CRA and for QST with Revenu Quebec.

QST is administered by Revenu Quebec, and you file separate returns. The tax applies to labour, parts and any other charges on the repair invoice. A Montreal shop repairing an appliance in Laval charges the same combined rate as one working in Montreal.

When you invoice, you must show GST and QST separately. Your booking software should be configured to calculate both taxes.

Quebec has specific rules about deposits and progress payments. If you collect a deposit at the time of booking, you generally must charge tax on that deposit. The same applies to any cancellation fees. For a quote template that includes tax lines, see our quote template.

Worked invoice example: GST with PST and GST with QST

A British Columbia repair with $180.00 in parts and $150.00 in labour comes to $330.00 before tax. GST at 5% adds $16.50. PST at 7% adds $23.10. The customer pays $369.60. You remit $16.50 to the CRA and $23.10 to BC.

The same $330.00 subtotal in Quebec carries GST of $16.50 and QST of $32.92 at 9.975%, for a total of $379.42. Revenu Quebec receives the QST and the CRA receives the GST.

When a repair shop must register and start charging GST/HST

You must register for GST/HST once your taxable revenues exceed the small supplier threshold. The threshold is $30,000 in a single calendar quarter or over four consecutive calendar quarters. If you exceed it, you must register and start charging tax.

The CRA provides detailed rules on when to register.

For a new repair shop, you may be a small supplier at first. But as your bookings grow, you will cross the threshold. You must monitor your revenue carefully, because once you exceed the threshold, you must charge tax from that point forward. You cannot retroactively charge tax on past invoices.

If you are a sole proprietor, the threshold applies to your total taxable revenues from all business activities. If you have multiple locations, you combine revenues. If you are a corporation, the threshold applies to the corporation's revenues.

Voluntary registration is allowed even if you are below the threshold. This can be beneficial if you want to claim input tax credits on your expenses. But it also means you must charge tax on all taxable supplies. For a compliance checklist that covers registration, see our requirements that come first.

Setting up booking software to calculate tax on quotes and invoices

Set the tax rules in your booking software before you take the next booking. This is not just a convenience; it is a legal requirement to charge the right amount. Many software platforms allow you to set up tax rules by province or postal code.

Start by listing every province where you perform repairs. For each, set the tax rate and whether it is a single tax (like HST) or a combination (like GST + PST). Then configure your quotes and invoices to show the tax breakdown.

If you use a platform that does not support multiple tax rates, you may need to upgrade. A good system will also handle tax exemptions and zero-rated items.

When you create a quote, the tax should be calculated automatically based on the customer's address. The same applies when you convert the quote to an invoice. You should also be able to run tax reports for remittance.

If your software cannot do this, you risk errors. For a review of platforms that handle Canadian tax, see our article on which software deserves the subscription.

Here are the steps to set up tax in your booking software:

Filing and remitting: CRA steps from invoice to payment

Once you are registered, you must file GST/HST returns and remit the tax you collected. The CRA offers different filing frequencies: monthly, quarterly or annually. Your frequency depends on your revenue. You can file online through CRA My Business Account or by using certified software.

The process starts with your invoices. You must keep records of all tax collected. At the end of each reporting period, you calculate the net tax: the GST/HST you collected minus any input tax credits you can claim. Then you file the return and pay the balance.

The CRA provides remittance deadlines that you must meet to avoid penalties and interest.

Filing frequency follows your annual taxable supplies. At $1.5 million or less you may file annually if you choose. Between $1.5 million and $6 million, the CRA requires quarterly or monthly filing. Above $6 million, you must file monthly.

Monthly and quarterly filers send the return and the payment one month after the end of the reporting period. Annual filers file within three months of the fiscal year end.

If your fiscal year ends December 31 and you are an individual, the return is due March 31. The payment is due April 30 when your net tax for the year is $3,000 or less.

For most small repair shops, filing quarterly is common. You can also choose to file annually if you are eligible. The key is to set aside the tax you collect so you have the funds when the remittance is due.

If you use accounting software, it can generate the return and remit electronically. But you are still responsible for the accuracy. Reconcile your tax collected with your sales records each period. If you find errors, you can adjust them on your next return or file an amendment.

Rebates, over-collected tax and confirming a GST/HST number

Sometimes you may over-collect tax or be eligible for a rebate. For example, if you charged GST/HST on an exempt item, you can adjust your next return to correct it. The CRA has rules for over-collected tax, and you may need to refund the customer or remit the amount.

If you are a small supplier and voluntarily registered, you may be able to claim a rebate for tax paid on expenses before registration.

Another common issue is confirming a customer's GST/HST number. If you sell to another business and they provide their GST/HST number, you may not need to charge tax on certain supplies, but you must verify the number is valid.

You can use the CRA's online GST/HST registry to confirm. If the number is invalid, you must charge tax.

For repair shops, most customers are consumers, so you charge tax on all bookings. But if you do work for property managers or other businesses, they may provide a GST/HST number. Keep a record of the number on the invoice. If you are unsure, charge the tax and let the customer claim it back if eligible.

Rebates are also available for certain purchases, such as energy-saving equipment. But these are rare in appliance repair. Focus on getting the basics right: charge the correct tax, remit on time, and keep good records. If you need help, consult a tax professional who knows the repair industry.

Common questions