Understand the Transport Tax Rules

A. Domestic Transportation (within Canada)

When transportation begins and ends in Canada, it is generally taxable.

The following are charged:

• GST (5%) throughout Canada
• + PST/QST/HST depending on the province

Examples:

• Quebec → Quebec: GST 5% + QST 9.975%
• Ontario → Ontario: HST 13% (GST + combined PST)
• Alberta → Alberta: GST 5% (no provincial tax)

Very simple → domestic transportation = taxable.

2. International Transportation

A. Canada → United States or other country (export)

ZERO TAX (0%)

→ Export transportation is not taxable (exempt).

B. United States → Canada (import)

Often ZERO TAX as well, since it is a transportation service related to an import.

Important:

The service must be directly related to international movement (cargo, ship, vehicle, goods, etc.).

3. Interprovincial Transportation (e.g., QC → ON)

This is taxable, but depending on the province where the service is delivered.

The main rule: Place of supply = province of departure (load).

Taxes are calculated according to the province of destination

Example: Transportation Quebec → Ontario

→ Point of departure = Quebec

Therefore, we charge: Ontario HST

4. Maritime Transport (Ships, Towing, Marina)

The same rules apply:

Transport within a province

→ Taxable (e.g., Quebec = GST + QST)

Interprovincial Transport

→ Taxable according to the province of delivery 

International Transport (e.g., ship from the US → Canada)

→ Zero tax

5. Auxiliary Transport Services

The following services are generally taxable:

• storage
• handling
• local towing
• lifting (crane)
• preparation/inspection
• parking/dock
• launching/removal from water

Regardless of whether the goods are imported/exported → value-added services are taxed.