Harmonized Sales Tax (HST) is a consumption tax in Canada that combines the federal Goods and Services Tax (GST) with the provincial sales tax (PST) into a single, streamlined tax. HST is collected in participating provinces, including Ontario, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador.

The goal of HST is to simplify the tax system for businesses and consumers by reducing the complexity of filing and remitting separate GST and PST amounts. The total HST rate varies by province but typically ranges from 13% to 15%, depending on the provincial portion.

Businesses that are registered to collect HST must charge it on most goods and services sold and remit the collected tax to the Canada Revenue Agency (CRA). At the same time, they can claim Input Tax Credits (ITCs) to recover the HST paid on business-related purchases, reducing the overall tax burden.

Some goods and services are zero-rated (taxed at 0%) or exempt from HST, such as basic groceries, prescription drugs, and certain health or financial services.

Understanding and managing HST obligations is essential for compliance and cash flow. For consumers, HST is typically included in the final sale price, while businesses must track, report, and remit it accurately to the CRA.