Overview of Provincial Sales Tax in Saskatchewan
Saskatchewan’s Provincial Sales tax is a six percent tax charged on goods and services imported, bought, sold, or consumed in the province. Both new and used goods are subject to this tax. The business collects the tax and remits it to the Provincial government.
Tax Rates in Saskatchewan
In Saskatchewan, the total sales tax rate is 11%, comprising of the federal Goods and Services Tax (GST) at 5% and the Provincial Sales Tax (PST) at 6%.
Importance of Sales Tax in Saskatchewan
In 2019, PST revenues made up 33.7% of Saskatchewan’s total tax revenue, more than corporate income and property taxes combined. The federal 5% GST also contributes significantly to Canada’s budget. In the same year, GST revenues were 14.2% of Canada’s total tax revenue, nearly double what Canada spends on national defence annually.
Calculation of PST and GST
To calculate PST and GST:
- Amount without taxes x GST rate ÷ 100 = GST amount
- Amount without taxes x PST rate ÷ 100 = PST amount
- Amount without taxes + GST amount + PST amount = Total with taxes
Sales Tax Process in Saskatchewan
The PST applies to taxable goods and services purchased, rented, or imported for use in Saskatchewan. When licensed suppliers collect PST, consumers pay it to them. When suppliers don’t collect PST, consumers must self-assess and pay it directly to the Revenue Division. All Saskatchewan businesses must register for a PST number.
Example Calculation
For example, with no taxes a product costs $30.
- The GST amount is $30 x 5÷100 = $1.50.
- The PST amount is $30 x 6÷100 = $1.80.
- Total with taxes is $30 + $1.50 + $1.80 = $33.30.
Conclusion
Saskatchewan charges a 6% PST and 5% GST for a total sales tax rate of 11% on goods and services. Businesses collect and remit the sales tax, which plays a significant role in government revenues.