GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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38% - Moderately

Provincial Sales Tax


Synonyms:sales tax
Acronyms &
abbreviations:
PST
Relevant locations:Canada
Filed Under: financial-banking, investments, taxation
Tags: taxes
 

Definition of provincial sales tax (PST)

provincial sales tax (PST)
1. A form of sales tax applied to purchases in some Canadian provinces. Some provinces charge their Provincial Sales Tax (PST) as a "value added tax" while others use a "cascading tax." Value added taxes are calculated on the value of the item being bought without taking the Goods and Services Tax (GST) into account. Cascading taxes are calculated after the GST has been applied, effectively applying a tax on top of a tax. Some provinces have done away with a PST and have moved towards a Harmonized Sales Tax (HST) which combines the GST and the PST.

Related Terms and Acronyms:

  • direct tax   A tax that is paid straight to the government.
  • goods and services tax (GS, GST)   A sales tax that applies in all Canadian provinces charged at 5% (as of 2012).
      ➥  Bank account transaction code.
  • harmonized sales tax (HST)   A sales tax used in some provinces to merge the GST and PST.
      ➥  Canadian consumption tax.
  • indirect tax   A tax that is collected by a third party before being transferred to the government.
  • sales tax   Federal and / or provincial taxes that are applied to purchases.
  • tax (TX)   A levy paid by an individual or entity that is collected by a government.

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