Summary of Reciprocal Taxation Agreements with Provinces and Territories
1. Effective date
1.1 This summary took effect on July 1, 2010 and is amended April 1, 2013.
1.2 It replaced Appendix C of the Policy on the Collection and Remittance of Provincial Sales Taxes (Application of Reciprocal Taxation Agreements and Comprehensive Integrated Tax Coordination Agreements).
2. Purpose
This summary is designed to help managers and staff make informed decisions on the administration and management of the provisions of the Federal-Provincial Reciprocal Taxation Agreements concluded with most provinces and territories.
3. Context
3.1 This summary supports the Directive on the Payment, Collection and Remittance of Provincial Taxes and Fees (the Directive).
3.2 This summary is a functional tool providing departmental managers with quick reference to concise information in the Reciprocal Taxation Agreements (RTA) between the Government of Canada and provinces and territories. Note that all federal government departments, managers and their staff are bound by these RTAs.
3.3 This summary should be read in conjunction with the Directive on the Payment, Collection and Remittance of Provincial Taxes and Fees and the Guideline on the Payment, Recording and Rebate of the Quebec Sales Tax.
4. Definitions
Definitions to be used in the interpretation of this summary can be found in the Directive on the Payment, Collection and Remittance of Provincial Taxes and Fees.
5. Department as a vendor
Under the Directive, federal departments that sell taxable goods and services are required to register with provincial taxation authorities and to collect and remit provincial taxes and fees in all provinces. The collection of provincial taxes and fees is required under all RTAs. Moreover, it is the federal government's policy to collect and remit provincial taxes and fees even in provinces without a RTA. For details concerning registration, collection and remittance of provincial sales taxes, consult the Directive on Payment, Collection and Remittance of Provincial Taxes and Fees.
6. Exemption from payment of provincial sales taxes
Generally, departments claim an exemption from the payment of provincial sales taxes (PST) on the purchase of taxable goods and services in all provinces with a PST, except Quebec. However, PST is payable when a taxable good or service is not acquired under the name of the department but rather under the name of a third party, such as under the name of an employee.
A common example of a third-party purchase where PST is payable is when an employee of a department purchases taxable goods or services in the course of employment-related travel. The taxable goods or services could include goods, meals, accommodation, taxi services and incidental travel-related expenses, as well as purchases reimbursed out of petty cash.
Note that PST exemption requirements vary from province to province. When necessary, departments provide an exemption certificate or number as proof of exemption status. The exemption certificate is usually worded as follows:
This is to certify that the property and/or services ordered or purchased by (insert name of Department/Agency) is/are being purchased with Crown funds and is/are therefore not subject to sales and consumption taxes of the Province of (insert name of Province).
7. Payment of provincial taxes and fees under the reciprocal taxation agreements (or other arrangements)
The federal government has bilateral RTAs with 8 provinces and 3 territories. Alberta and New Brunswick are not party to an RTA with the federal government. The federal government and New Brunswick have agreed to pay each other's taxes or fees under certain circumstances. Note that departments and managers are bound by these agreements and arrangements.
The following section summarizes each province and territory's RTA requirements.
Newfoundland and Labrador
Agreement
There is an RTA in place, effective January 1, 2011.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province. The PST was replaced by the harmonized sales tax (HST).
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- Parts III Gasoline Tax of the Revenue Administration Act, SNL2009R, c. R-15.01
- the Highway Traffic Act, RSNL 1990, c. H-3
- Part IX Tobacco Tax of the Revenue Administration Act, SNL2009, c. R-15.01
- the Motorized Snow Vehicles and All-Terrain Vehicles Act, RSNL 1990, c. M-20
- Part VIII Retail Sales Tax of the Revenue Administration Act, SNL2009, c. R-15.01
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Taxation and Fiscal Policy Branch
Department of Finance
3rd Floor, East Block, Confederation Building
Province of Newfoundland and Labrador
PO Box 8700
St. John's NL A1B 4J6
Telephone: 709-729-6297 or 1-877-729-6376
Facsimile: 709-729-2856
Email: Contact the Taxation and Fiscal Policy Branch by email: taxadmin@mail.gov.nl.ca
Additional information
For information on the HST, please refer to the Directive on the Application of the Goods and Services Tax/Harmonized Sales Tax.
Information about taxes imposed or levied by this province can be found on the Taxes, Programs and Incentives page of the Government of Newfoundland and Labrador Department of Finance website.
Prince Edward Island
Agreement
There is an RTA in place, effective April 1, 2013.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province. It was replaced, effective April 1, 2013, by the HST.
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- the Gasoline Tax Act, R.S.P.E.I. 1988, c. G-3 (when the fuel purchased is for use in Canada1)
- the Health Tax Act, R.S.P.E.I.1988, c. H-3
- the Highway Traffic Act, R.S.P.E.I. 1988, c. H-5
- the Motor Carrier Act, R.S.P.E.I. 1988, c. M-10
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
General Information
Department of Finance, Energy and Municipal Affairs
Taxation and Property Records Division
PO Box 1330
Charlottetown PE C1A 7N1
Telephone: 902-368-4070
Email: Contact General Information by email: taxandland@gov.pe.ca
Additional information
For information on the HST, refer to the Directive on the Application of the Goods and Services Tax/Harmonized Sales Tax.
Information about taxes imposed or levied by this province can be found on the Tax and Land Information Website.
Nova Scotia
Agreement
There is an RTA in place, effective January 1, 2011.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province. The PST was replaced by the HST.
Other Provincial Tax or Fee (PTF)>
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- the Revenue Act, S.N.S. 1995-1996, c.17, except Parts II and IIA
- the Motor Carrier Act, R.S.N.S. 1989, c. 292
- the Motor Vehicle Act, R.S.N.S. 1989, c. 293
- the Off-highway Vehicles Act, R.S.N.S.1989, c. 323
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Nova Scotia Department of Finance
Provincial Building, 6th Floor
PO Box 187
Halifax NS B3J 2N3
Telephone: 902-424-2412
Facsimile: 902-424-0590
Email: Contact the Nova Scotia Department of Finance by email: pangxi@gov.ns.ca
Additional information
For information on the HST, refer to the Directive on the Application of the Goods and Services Tax/Harmonized Sales Tax.
Information about taxes imposed or levied by this province can be found on the Taxation page of the Government of Nova Scotia Department of Finance website.
New Brunswick
Agreement
There is no RTA in place, but the federal Government and New Brunswick have agreed to pay each other's taxes and fees under certain circumstances.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province. The PST was replaced by the HST.
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but not necessarily limited to, the following:
- the Gasoline and Motive Fuel Tax Act, R.S.N.B., 1973, c. G-3
- the Motor Vehicle Act, R.S.N.B., 1973, c. M-17
- the Tobacco Tax Act, R.S.N.B., 1973, c. T-7
- the Motorized Snow Vehicles Act, R.S.N.B., 1973, c. M-18
- the Motor Carrier Act, R.S.N.B., 1973, c. M-16
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Tax Information and Programs
Department of Finance
PO Box 6000
Fredericton NB E3B 5H1
Telephone: 506-453-2404
Email: Comments or queries by e-mail
Additional information
For information on the HST, refer to the Directive on the Application of the Goods and Services Tax/Harmonized Sales Tax.
Information about tax imposed or levied by this province can be found on the Taxes page of Government of New Brunswick Department of Finance website.
Quebec
Agreement
There is an RTA in place, effective April 1, 2013.
Department as a purchaser
Provincial Sales Tax (PST)
There is PST in this province, which is called the Quebec Sales Tax (QST). The QST is imposed under Title 1 of An Act respecting the Québec sales tax, S.Q., chapter T-0.1.
Departments are required to pay QST on the purchase or acquisition of taxable goods or services and subsequently claim a rebate through the QST Federal Rebate Administrator from Revenu Québec. For further information, departments can refer to the Directive on the Payment, Collection and Remittance of Provincial Taxes and Fees and the Guideline on the Payment, Recording and Rebate of the Quebec Sales Tax.
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessary limited to, the following:
- the Highway Safety Code, S.Q., chapter C-24.2
- the Tobacco Tax Act, S.Q., chapter I-2
- the Fuel Tax Act, S.Q., chapter T-1
- An Act respecting the Québec Sales Tax, S.Q., chapter T-0.1, with the exception of Title I and other transitional provisions.
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Direction principale des services à la clientèle des entreprises
Revenu Québec
3800, rue de Marly
Québec (Québec) G1X 4A5
Telephone: 418-659-4692
Toll free: 800-567-4692
More contact information is available on the Contact Us page of the Revenu Québec website.
Additional information
Information about taxes imposed or levied by this province can be found on the Consumption Taxes page of the Revenu Québec website.
Ontario
Agreement
There is an RTA in place, effective January 1, 2011.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province. The PST was replaced by the harmonized sales tax (HST).
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- Part II of the Alcohol and Gaming Regulation and Public Protection Act, 1996, S.O. 1996.c.26
- Part V.I of the Electricity Act, 1998, S.O. 1998, c.15, Sched. A
- the Fuel Tax Act, R.S.O. 1990, c. F.35
- the Gasoline Tax Act, R.S.O. 1990, c. G.5
- the Highway Traffic Act, R.S.O. 1990, c. H.8
- the Motorized Snow Vehicles Act, R.S.O. 1990, c. M.44
- the Off-Road Vehicles Act, R.S.O. 1990, c. O.4
- the Public Vehicles Act, R.S.O. 1990, c. P.54
- Sections 2.1, 2.1.12 and 4.2 of the Retail Sales Tax Act, R.S.O. 1990, c. R.31
- the Tobacco Tax Act, R.S.O. 1990, c. T.10
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Ontario Ministry of Finance
Tax Advisory Services Branch
33 King Street West, 3rd Floor
Oshawa ON L1H 8H5
Telephone: 905-433-6000
Toll free: 800-263-7965
Facsimile: 905-433-6777
Additional information
For information on the HST, refer to the Directive on the Application of the Goods and Services Tax/Harmonized Sales Tax.
Information about taxes imposed or levied by this province can be found on the Taxes and Charges page of the Government of Ontario Ministry of Revenue website.
Manitoba
Agreement
There is an RTA in place, effective January 1, 2011.
Department as a purchaser
Provincial Sales Tax (PST)
There is a PST in this province, which is imposed under The Retail Sales Tax Act, C.C.S.M., c. R130 or the Tax Administration and Miscellaneous Taxes Act, C.C.S.M. c. T2.
Departments are generally exempt from paying PST on the purchase or acquisition of taxable goods or services in this province but are required to pay PST on third-party purchases.
Exemption Number: 390-516-0
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- The Fuel Tax Act, C.C.S.M., c. F192
- The Highway Traffic Act, C.C.S.M., c. H60
- The Off-Road Vehicles Act, C.C.S.M., c. O31
- The Tobacco Tax Act, C.C.S.M., c. T80
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Manitoba Finance
Taxation Division
101–401 York Avenue
Winnipeg MB R3C 0P8
Telephone: 204-945-5603
Toll free in Manitoba: 800-564-9789
Facsimile: 204-945-0896
Email: Contact Manitoba Finance by email: MBTax@gov.mb.ca
Additional information
Information about taxes imposed or levied by this province can be found on the Taxation Division pageof the Government of Manitoba Department of Finance website .
Saskatchewan
Agreement
There is an RTA in place, effective January 1, 2011.
Department as a Purchaser
Provincial Sales Tax (PST)
There is PST in this province, which is imposed under The Provincial Sales Tax Act, S.S c. P-34.1.
Departments are generally exempt from paying PST on the purchase or acquisition of taxable goods or services in this province but are required to pay PST on third-party purchases.
An exemption certificate is to be used in this province.
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- The Fuel Tax Act, 2000, S.S. 2000, c. F-23.21
- The Traffic Safety Act, S.S. 2004, c. T-18.1
- The Liquor Consumption Tax Act, S.S. 1979, c. L-19.1
- The Tobacco Tax Act, 1998, S.S. 1998, c. T-15.001
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Saskatchewan Finance
Revenue Division, Tax Information Services
2350 Albert Street
Regina SK S4P 4A6
Telephone: 306-787-6645
Toll free: 800-667-6102
Facsimile: 306-787-9644
Email:Contact Saskatchewan Finance by email: sask.tax.info@finance.gov.sk.ca
Additional information
Information about taxes imposed or levied by this province can be found on the Information for Businesses page of the Government of Saskatchewan Ministry of Finance website.
Alberta
Agreement
There is no RTA in place in this province.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province.
Other Provincial Tax or Fee (PTF)
This province has PTFs, which departments are generally not required to pay.
The Alberta fuel tax does not apply when departments pay for fuel directly; however, when government employees pay for fuel, it is subject to fuel tax. For additional information, refer to Information Circular FT-1, Alberta Fuel Tax Act Information Circular: Overview of Fuel Tax.
The Alberta tourism levy does not apply when departments pay for accommodations directly and provide an exemption certificate to the hotel operator; however, when government employees pay for accommodations, they are subject to the tourism levy. For additional information, refer to Information Circular TL-1R3, Alberta Tourism Levy Act Information Circular: Overview of Tourism Levy Act.
Department as a vendor
Departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Tax and Revenue Administration
Alberta Finance
9811–109 Street
Edmonton AB T5K 2L5
Telephone: 780-427-3044
Toll free in Alberta: call 310-0000, then enter 780-427-3044
Facsimile: 780-427-0348
Email: Contact Tax and Revenue Administration by email: tra.revenue@gov.ab.ca
Web: www.finance.gov.ab.ca
Additional information
Information about taxes imposed or levied by this province can be found on the Tax and Revenue Administration page of the Government of Alberta Finance and Enterprise website.
British Columbia
Agreement
There is an RTA in place.
Department as a purchaser
Provincial Sales Tax (PST)
There is PST in this province, effective April 1, 2013. It is imposed under the Provincial Sales Tax Act, S.B.C. 2012, c. 35, other than under section 123 of the Act.
Exemption number: PST-1000-5001.
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- the Carbon Tax Act, S.B.C. 2008, c. 40
- the Commercial Transport Act, R.S.B.C. 1996, c. 58
- the Hotel Room Tax Act, R.S.B.C. 1996, c. 207
- the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317
- the Motor Vehicle Act, R.S.B.C. 1996, c. 318
- the Motor Vehicle (All Terrain) Act, R.S.B.C. 1996, c. 319
- the Passenger Transportation Act, S.B.C. 2004, c. 39
- the tax imposed under section 123 of the Provincial Sales Tax Act, S.B.C. 2012, c. 35
- the Tobacco Tax Act, R.S.B.C. 1996, c. 452
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Customer Taxation Branch
PO Box 9442 STN PROV GOVT
Victoria BC V8W 9V4
Telephone: 1-604-660-4524
Toll free: 1-877-388-4440
Facsimile: 1-250-387-3000
Email: Contact Customer Taxation Branch by email: CTBTaxQuestions@gov.bc.ca
Additional information
Information about taxes imposed or levied by this province can be found on the Provincial Sales Tax pages of the Government of British Columbia Ministry of Finance website.
Yukon
Agreement
There is an RTA in place, effective July 1, 2010.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this territory.
Other Provincial Tax or Fee (PTF)
This territory has PTFs that departments are required to pay. The territorial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- the Fuel Oil Tax Act, R.S.Y. 2002, c. 97
- the Tobacco Tax Act, R.S.Y. 2002, c. 219
Departments are required to pay licence plate fees and other user fees.
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Finance –Taxation
Government of Yukon
Box 2703
Whitehorse YK Y1A 2C6
Telephone: 867-667-5343
Facsimile: 867-393-6217
Email: Contact Finance Taxation by email: fininfo@gov.yk.ca
Additional information
Information about taxes imposed or levied by this territory can be found on the Taxation page of the Government of Yukon Department of Finance website.
Northwest Territories
Agreement
There is a RTA in place, effective September 1, 2009.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this territory.
Other Provincial Tax or Fee (PTF)
This territory has PTFs that departments are required to pay. The territorial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- the Motor Vehicles Act, R.S.N.W.T. 1988, c. M-16
- the Petroleum Products Tax Act, R.S.N.W.T. 1988, c. P-5
- the Tobacco Tax Act, R.S.N.W.T. 1988, c. T-5
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Treasury Division, Department of Finance
Government of Northwest Territories
PO Box 1320
Yellowknife NT X1A 2L9
Telephone: 867-920-3470
Toll free: 800-661-0820
Facsimile: 867-873-0325
Email: Contact the Treasury Division, Department of Finance by email: NWT_TAX@gov.nt.ca
Web: http://www.fin.gov.nt.ca/
Additional information
Information about taxes imposed or levied by this territory can be found on the Legislation page of the Government of Northwest Territories Department of Finance website.
Nunavut
Agreement
There is an RTA in place, effective January1, 2011.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this territory.
Other Provincial Tax or Fee (PTF)
This territory has PTFs that departments are required to pay. The territorial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- the Motor Vehicles Act, R.S.N.W.T. 1988, c. M-16
- the Petroleum Products Tax Act, R.S.N.W.T. 1988, c. P-5
- the Tobacco Tax Act, R.S.N.W.T. 1988, c. T-5
Department as a vendor
The departments are required to collect and remit the Provincial Taxes or Fees in respect of the sales of property or services by Canada in accordance with the provincial laws, as if these laws were applicable to them.
Contact office
Department of Finance
Government of Nunavut
PO Box 1000 STN 330
Iqaluit NU X0A 0H0
Telephone: 867-975-5803
Facsimile: 867-975-5805
Toll free: 800-316-3324 (Taxation and Risk Management)
Toll free: 888-975-5867 (Revenue and Collections)
Additional information
Information about taxes imposed or levied by this territory can be found on the Taxation page of the Government of Nunavut Department of Finance website.
Appendix - Tax status summary
Government of Canada Purchases
Taxes | NL | PEI | NS | NB | QC | ON | MB | SK | AB | BC | YK | NT | NU |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Legend
| |||||||||||||
Harmonized sales tax (HST) | T | T | T | T | N/A | T | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Provincial sales tax (PST) | N/A | N/A | N/A | N/A | T | N/A | E | E | N/A | E | N/A | N/A | N/A |
Provincial tax or fee (PTF): | |||||||||||||
Tobacco | T | T | T | T | T | T | T | T | E | T | T | T | T |
Gasoline | T | T | T | T | T | T | T | T | E | T | T | T | T |
Vehicle registration fees | T | T | T | T | T | T | T | T | E | T | T | T | T |
Broadcast advertising | N/A | N/A | N/A | N/A | T | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Insurance premiums | N/A | N/A | N/A | N/A | T | T | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Room tax | N/A | N/A | N/A | N/A | T | N/A | N/A | N/A | N/A | T | N/A | N/A | N/A |
Alcoholic beverages | N/A | N/A | N/A | N/A | T | T | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Reimbursement of third-party purchases
Taxes | NL | PEI | NS | NB | QC | ON | MB | SK | AB | BC | YK | NT | NU |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Legend
| |||||||||||||
HST | T | T | T | T | N/A | T | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
PST | N/A | N/A | N/A | N/A | T | N/A | T | T | N/A | T | N/A | N/A | N/A |
HST/PST/PTF on | T | T | T | T | T | T | T | T | N/A | T | N/A | N/A | N/A |
HST/PST/PTF on | T | T | T | T | T | T | T | T | T | T | N/A | N/A | N/A |
HST/PST/PTF on | T | T | T | T | T | T | T | T | T | T | T | T | T |
Taxes | NL | PEI | NS | NB | QC | ON | MB | SK | AB | BC | YK | NT | NU |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Legend
| |||||||||||||
HST/PST/PTF on vehicle maintenance costs incurred on behalf of the Crown by a fleet management service provider | T | T | T | T | T | T | E | E | N/A | E | N/A | N/A | N/A |