Glossary · Sales tax
PST
PST is a provincial sales tax charged in addition to the 5% GST in British Columbia (7%), Saskatchewan (6%) and Manitoba, where it is called the retail sales tax (RST, 7%). Each province runs its own PST, decides what it applies to, and collects it on its own return, separate from GST.
Glossary / PST · Also called Provincial sales tax, RST
How it works
PST works differently from GST. It is a retail tax charged to the final user, and there is no input tax credit: a business that pays PST on something it uses, such as office equipment, generally cannot claim it back. Goods bought for resale are usually exempt from PST when the buyer gives its PST number.
Each province decides which goods and services are taxable, so a sale can carry GST but not PST, or both. Registration, filing frequency and the rules for sellers outside the province are set by each province. Quebec's equivalent is the QST, which is harmonized more closely with the GST. Alberta and the territories have no provincial sales tax.
Worked example: A $500 sale in each province
The same $500 taxable item, taxed at the general rates, adds up differently depending on where it is sold. Each tax is worked out on the $500 price; neither tax is charged on the other.
| Province | GST | PST or RST | Total |
|---|---|---|---|
| British Columbia | $25.00 | $35.00 (7%) | $560.00 |
| Saskatchewan | $25.00 | $30.00 (6%) | $555.00 |
| Manitoba | $25.00 | $35.00 (7% RST) | $560.00 |
| Alberta | $25.00 | None | $525.00 |
In AcboBooks
A Canadian company in British Columbia, Saskatchewan or Manitoba gets PST or RST as its own tax rate in AcboBooks, plus a combined GST + PST rate, so a line can carry either tax or both. PST paid on purchases stays in the expense, as the rules intend.
Related terms
Related on this site
Sources
- Government of British Columbia: provincial sales tax (PST)
- Government of Saskatchewan: provincial sales tax
- Manitoba Finance: retail sales tax
Updated October 25, 2026. General information, not tax, legal or accounting advice. Rules and rates change; check with the IRS, the CRA, your state or province, or your accountant.
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