How do I know whether to charge Ontario's HST rate or another province's rate on my services?

The rate of HST (or GST) you charge depends on the "place of supply" — where the supply is considered to have taken place under the federal Excise Tax Act's rules. For services, the place of supply is generally where the customer receives the service, which can be more complex than for physical goods.

For most services provided to an Ontario recipient, 13% Ontario HST applies. If you provide the same service to a recipient in Alberta (which has no provincial component), only 5% federal GST applies. The rules for determining the customer's province differ for services provided at the customer's location versus services performed remotely, and for services related to real property (which are taxed where the property is located).

Digital services and services performed entirely by phone or online use the customer's address as the key determinant. It is the supplier's responsibility to charge the correct rate. Errors — charging Ontario HST to an Alberta customer or vice versa — can create adjustments and interest on both ends. If you serve clients in multiple provinces, reviewing the CRA's place-of-supply rules for your specific service type is worthwhile.