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Taxes that apply to Canadian fleets operating in the United States include the Goods and Services Tax (GST), Harmonized Sales Tax (HST), and the U.S. Heavy Vehicle Use Tax (HVUT).
Scope
A person, corporation, or motor carrier must register for and collect and pay the Goods and Services Tax (GST) if they have commercial activities in Canada which earn annual sales from taxable goods and services, including zero-rated freight transportation services, over $30,000.
Canadian carriers operating taxable vehicles into the United States must carry proof of U.S. Heavy Vehicle Use Tax (HVUT) tax payment in the vehicles and present it to U.S. Customs and Border Protection officials upon request.
Regulatory citations
- None
Key definitions
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Summary of requirements
GST/HST rates. Goods and Services Tax (GST) is a five percent tax on the sale of most goods and services in Canada. The current GST and Harmonized Sales Tax (HST) rates are as follows:
| Jurisdiction | GST/HST rate | PST rate | Combined rate |
|---|---|---|---|
| Alberta | 5% | N/A | 5% |
| British Columbia | 5% | 7% | 12% |
| Manitoba | 5% | 7% | 12% |
| New Brunswick | 13% | N/A | 13% |
| Newfoundland/Labrador | 15% | N/A | 15% |
| Northwest Territories | 5% | N/A | 5% |
| Nova Scotia | 15% | N/A | 15% |
| Nunavut | 5% | N/A | 5% |
| Ontario | 13% | N/A | 13% |
| Prince Edward Island | 14% | N/A | 14% |
| Quebec | 5% | 9.975% | 14.975% |
| Saskatchewan | 5% | 5% | 10% |
| Yukon Territories | 5% | N/A | 5% |
The GST is administered by Canada Revenue Agency (CRA) and affects the motor carrier industry. For more information on GST/HST, see the guide called General information for GST/HST Registrants.
Registration for the GST/HST is required if:
- Taxable goods and services are provided in Canada; and
- The person, corporation, or motor carrier is not a small supplier.
View Canada Revenue Agency’s document called GST/HST information for freight carriers.
Generally, if only exempt goods and services are provided, one cannot register for GST/HST or charge tax on the sales of goods and services.
The Goods and Services Tax (GST) is administered by Canada Revenue Agency (CRA) and affects the motor carrier industry.
Federal sales and excise tax on fuel. The Canadian government assesses an excise tax on fuel plus the 5% Goods and Services Tax (GST). The excise tax rate only change when the Federal budget is changed by the government. The federal fuel tax rates are as follows:
| Fuel Type | Excise Tax (per litre) |
|---|---|
| Diesel | $0.04 |
| Regular Gasoline - Unleaded | 0.10 |
| Regular Gasoline - Leaded | 0.11 |
U.S. Heavy Vehicle Use Tax (HVUT). Vehicles having a base registration in Canada and a taxable gross weight of 55,000 pounds or more and operating into the United States are subject to the U.S. Federal Heavy Vehicle Use Tax (HVUT) in the same manner as vehicles licensed in the U.S.
The rate of tax imposed on such vehicles is the same as the rate applicable to vehicles based in the U.S. (there is a reduced rate for logging vehicles). Taxpayers must file Form 2290, Heavy Vehicle Use Tax Return, together with tax due annually by August 31. The tax is payable for the period of July 1 through June 30 each year; however, those who put vehicles put into service during the year pay a prorated fee depending on the month the vehicle is added.