5 Percent Tax Calculator
Here’s a comprehensive table summarizing key information about 5 percent tax, which is typically referring to the Goods and Services Tax (GST) in Canada:
| Aspect | Details |
|---|---|
| Tax Name | Goods and Services Tax (GST) |
| Rate | 5% |
| Introduced | January 1, 1991 |
| Administered by | Canada Revenue Agency (CRA) |
| Applies to | Most goods and services sold or provided in Canada |
| Exceptions | Basic groceries, residential rent, medical services, financial services |
| Provinces using only GST | Alberta, Northwest Territories, Nunavut, Yukon |
| Provinces with HST | Ontario (13%), New Brunswick (15%), Newfoundland and Labrador (15%), Nova Scotia (15%), Prince Edward Island (15%) |
| Provinces with GST + PST | British Columbia (12% total), Manitoba (12% total), Quebec (14.975% total), Saskatchewan (11% total) |
| Registration Threshold | Businesses with revenue exceeding $30,000 in four consecutive calendar quarters |
| Filing Frequency | Monthly, quarterly, or annually (based on revenue) |
| Input Tax Credits | Businesses can claim credits for GST paid on business expenses |
| Zero-rated Items | Exports, basic groceries, agricultural products, prescription drugs |
| Exempt Items | Health care services, educational services, child care services, legal aid services |
| Place of Supply Rules | Determine which tax rate applies based on location of customer |
| Visitors to Canada | Can claim refunds for GST paid on accommodations and goods taken out of the country |
| First Nations | Status Indians may be exempt from paying GST on certain purchases |
| Charities and Non-profits | Special rules and rebates may apply |
| Small Supplier Threshold | Businesses below $30,000 in revenue may choose not to register for GST |
| Quick Method | Simplified accounting option for small businesses |
| Reporting Period | Determined by annual revenue and filing frequency |
| Penalties | Apply for late filing or failure to remit GST collected |
| Audits | CRA may conduct audits to ensure compliance |
This table provides a comprehensive overview of the 5% Goods and Services Tax in Canada, covering key aspects such as applicability, exceptions, provincial variations, registration requirements, and special considerations for different types of businesses and individuals. It’s important to note that tax laws can change, so it’s always advisable to consult with a tax professional or check the Canada Revenue Agency website for the most up-to-date information.