Sales taxes are complicated in Canada. Some province charge a PST (Provincial Sales Tax), others combine their sales tax with the federal government’s sales tax and charge what’s called a Harmonized Sales Tax (HST), and others, like the Northwest Territories, opt to just charge the federal GST (Goods and Services Tax).

It’s important to know which sort of tax is used by  the province before you use a Northwest Territories Sales Tax Calculator. What’s the difference between PST and GST, how much is GST, and which businesses have to charge GST?

We’ll tell you everything you need to know in our Northwest Territories Sales Tax Calculator article. 

The difference between PST and GST

Before using a Northwest Territories sales tax calculator, you should know the difference between different types of sales taxes. 

The major difference between PST and GST is who established them. PST is established by provinces, while the GST is a federal sales tax established by the Canada Revenue Agency (CRA). The GST is charged in every province, but while other provinces also charge a PST, the Northwest Territories don’t. 

The other difference between the different types of sales taxes are their rates. Usually PST is around 5-7%, while HST is 13-15%, and GST is 5%. 

How out-of-province sales are taxed

Just because the Northwest Territories only charge GST doesn’t mean that every sale made in the province is subject to only GST, which important to note when using a Northwest Territories Sales Tax Calculator. 

If buyers from other provinces buy goods and services from your company, then they’re subject to the sales taxes of their provinces, which could be HST, PST or GST. That applies to deliveries to other provinces, as well. 

If they come to your physical location to purchase goods or services, then they’re only subject the the GST charged in the Northwest Territories. 

Which businesses must register for GST in the Northwest Territories?

Many people who are looking for a good Northwest Territories Sales Tax Calculator are business owners, so it’s natural for them to wonder which businesses are required to register to collect GST. 

If your business makes more than $30,000 per year, then it’s required to register with the Canada Revenue Agency (CRA). So, if your business makes under $30,000 per year then you aren’t required to register your business to collect GST in the Northwest Territories. 

Northwest Territories GST tax credit

Low-income people can qualify for a GST tax credit in the Northwest Territories. The credit starts out at $299, with an additional $157 if your family’s combined income is more than $9,686. If your income is more than $38, 892 then your tax credit amount gradually goes down. 

The tax credits are paid four times a year on January 5^th, April 5^th, July 5^th and October 5^th every year. Because they’re paid out the same time every year, it’s easy for you to remember the payment dates and to start watching for them around those dates. 

Exemptions for GST

There are two different categories of exemptions for GST: zero-rated goods and services, and exemptions. “Zero-rated” means that it’s taxed at a rate of 0%. Exemptions aren’t taxed at all. It’s important to know about these two exemption types when using a Northwest Territories sales tax calculator. 

Here are some of the goods and services that are exempt from GST in the Northwest Territories: 

Zero-rated goods

• Grocery items like dairy products, eggs, meat, cereal, bread and vegetables
• Agricultural products, which includes things like dried tobacco leaves, grain, and raw wool
• Many types of livestock
• Products from fisheries, such as fish made for consumption
• Prescription drugs, as well as services involving drug-dispensing
• Medical devices (false teeth, hearing devices, etc.)
• Exports. Many of the things you’d charge GST for in Canada become exempt from GST when they’re exported. 
• Feminine hygiene products
• Transportation services where the destination is somewhere outside of Canada

Exempt supplies

• Sales of residential properties that have been previously owned or used
• Rentals for longer than one month on residential properties and condominiums
• Any health, dental or medical service that’s performed by a physician or dentist that are listed as being provided for medical reasons
• Daycare or childcare services that involve supervision of a child 14 years of age or younger for less than 24 hours at a time
• Legal aid services
• Domestic ferry services
• Educational services that are required by specific industries, or result in a diploma or certificate. Also tutoring whose curriculum was developed by a school authority are exempt. 
• Services from financial institutions (like bank fees for money lending or operating a spending account)
• Music lessons
• Insurance policies that are prepared and issued by insurers and insurance agents
• Services and property that are provided by public institutions and charities
• Specific services or property supplied by government agencies, municipalities, non-profit organizations, and other public service organizations. Some of these include public transportation provided by municipalities and water distribution. 

Finding the Best Northwest Territories sales tax calculator

When it comes to using  a Northwest Territories sales tax calculator, they’re not all made equal. 

If you’re looking for a simple and straightforward Northwest Territories sales tax calculator then the one from Hellosafe is a good option.

You can either do a regular sales tax calculation which will tell you the total amount with sales tax included or a reverse sales tax calculation which tells you how much a product costs without sales tax. This is a good way to determine whether the price of a particular product is good or not. 

Another option is the Northwest Territories sales tax calculator from GSTCalculator. Similar to Hellosafe’s calculator, you have the option to enter the price before or after taxes. GST’s calculator for the Northwest Territories is a little more simplistic.

If you want to find out the value of a price of something after taxes then you enter the amount under the “Price excluding GST” section, but if you want to do a reverse sales tax calculation then you enter the amount under the “Price including GST”. 

You might also like…

• GST Sales Tax Calculator
• Income Tax Calculator