GST, HST, PST & QST on Car Rentals: The Canadian Operator’s Guide
- Rentals are taxable across Canada — the mix (GST vs HST vs GST+PST vs GST+QST) depends on the province of supply.
- Register once you pass the $30,000 small-supplier threshold — or voluntarily earlier to claim input tax credits on your cars.
- Platforms may remit on marketplace trips; every direct booking is on your own registration.
The Canadian tax map, structurally
Every province taxes car rentals; what differs is the shape:
| Province type | What you charge | Examples |
|---|---|---|
| HST provinces | One harmonized rate | Ontario; New Brunswick, Nova Scotia, PEI, Newfoundland & Labrador |
| GST + PST | Federal 5% plus provincial sales tax | British Columbia, Saskatchewan, Manitoba |
| GST + QST | Federal 5% plus Quebec sales tax | Quebec |
| GST only | Federal 5% | Alberta and the territories |
Rates move with budgets — treat any specific number as a prompt to check CRA and your provincial authority, not as gospel. Some provinces and municipalities also add vehicle-rental-specific fees or levies on top; ask when you register. This guide is operator guidance, not tax advice.
Registration: the $30,000 line
You must register for GST/HST once taxable revenue passes 30,000 CAD across four rolling quarters. Most serious operators register voluntarily before that: registration lets you claim input tax credits on the GST/HST you paid buying and maintaining the cars — which is real money on a 35,000-dollar vehicle. Quebec operators register for QST alongside.
Platform trips vs direct trips
Under Canada’s digital-platform rules, marketplaces like Turo generally collect and remit the sales taxes on marketplace trips. The trap: assuming that covers you. Your direct rentals, website bookings, and off-platform extensions are supplied by YOU — charged, reported, and remitted under your own registration. Two channels, two tax flows, one set of books that must hold both.
Running it cleanly per booking
- Default + override: set your home province’s profile as default; override per booking for edge cases (delivery across a provincial border, tax-exempt status, long-term treatment).
- Tax as its own line: renters accept tax they can see; invoices that bury it cause disputes. Choose tax-inclusive or tax-on-top pricing deliberately and keep the ledger consistent.
- File on schedule even when zero — silence earns penalties.
CarCEO ships Canadian profiles for the GST/HST/PST/QST combinations, a per-booking override, and invoices that keep the ledger consistent whichever pricing mode you choose.