PST and QST for Canadian Freelancers: What You Can and Can't Claim
Provincial sales taxes in BC, Manitoba, Saskatchewan, and Quebec are often confused with GST/HST — but they follow entirely different rules for self-employed workers.
Sarah Tremblay
CPA, Tax Advisor
Four Canadian provinces charge a provincial sales tax that operates separately from federal GST: British Columbia (PST 7%), Manitoba (RST 7%), Saskatchewan (PST 6%), and Quebec (QST 9.975%). Unlike HST, these provincial taxes are generally not recoverable as input tax credits on your federal GST/HST return — which affects how you should categorize and report them.
PST in BC, Manitoba, and Saskatchewan
PST in these provinces is a cost of doing business — you pay it on purchases and cannot recover it. This means the full GST + PST amount you pay on a business purchase becomes your deductible expense, but only the GST portion generates an ITC. When entering expenses in your bookkeeping system, record the total purchase amount (including PST) as the expense, but only the GST portion as a recoverable ITC.
QST in Quebec
- Quebec collects QST (9.975%) separately from federal GST (5%) — total 14.975%
- If your QST-taxable supplies in Quebec exceed $30,000, you must also register for QST with Revenu Québec
- QST ITCs are claimed on your Quebec QST return, not your federal GST return
- Quebec freelancers effectively file two separate sales tax returns: one with CRA (GST) and one with Revenu Québec (QST)
- QST-registered businesses can recover the QST they paid on inputs through the QST ITC system
ReceiptOne flags PST separately from GST/HST on your expense records. This ensures your ITC calculations stay accurate — PST is recorded as an expense cost, not as a recoverable credit.