Harmonized Sales Tax The Harmonized Sales Tax (HST) is a
consumption tax in Canada. It is used in provinces where both
the federal Goods and Services Tax (GST) and the regional
Provincial Sales Tax (PST) have been combined into a single
value added sales tax. The HST is in effect in five of the ten
Canadian provinces: Ontario, New Brunswick, Newfoundland and
Labrador, Nova Scotia and Prince Edward Island. On April 1,
2013, British Columbia abandoned the HST and reverted back to
the GST/PST system and Prince Edward Island adopted the HST. The
HST is collected by the Canada Revenue Agency, which remits the
appropriate amounts to the participating provinces. The HST may
differ across these five provinces, as each province will set
its own PST rates within the HST. To help maintain revenue
neutrality of total taxes on individuals, the Canadian
government (for the GST) and the participating provincial
governments have accompanied the change from a cascading tax to
a value-add tax with a reduction in income taxes,