GST/HST Glossary Canada 2026: Key Terms Explained

Canada's GST/HST system comes with a vocabulary that can be confusing for both individuals and business owners. This glossary defines the most important terms in plain English — whether you are filing a business return, checking your personal benefit eligibility, or understanding the new Canada Groceries and Essentials Benefit (CGEB).

Adjusted Family Net Income (AFNI)

The income figure the CRA uses to calculate your GST/HST credit and CGEB entitlement. It is your family net income (line 23600 of your tax return, plus your spouse's or common-law partner's if applicable), minus any Universal Child Care Benefit (UCCB) or Registered Disability Savings Plan (RDSP) income received, plus any UCCB or RDSP amounts repaid. Your children's income is not included.

Base Year

The tax year whose information is used to calculate your GST/HST credit or CGEB payments. Payments issued from July 2026 to June 2026 use your 2024 tax return as the base year. Payments from July 2026 to June 2027 (under the CGEB) use your 2026 tax return.

Business Number (BN)

A unique 9-digit identifier assigned by the CRA when you register for GST/HST or other federal tax programs. Your GST/HST account is identified by your BN followed by "RT" and a reference number (e.g., 123456789 RT 0001).

Canada Groceries and Essentials Benefit (CGEB)

The federal benefit that replaced the GST/HST credit starting July 3, 2026. It provides tax-free quarterly payments to low- and modest-income Canadians, with amounts 25% higher than the former GST/HST credit. The 25% increase is locked in for five years (2026–2031). Eligibility, payment structure, and automatic assessment through tax filing remain identical to the former credit.

Excise Tax Act (ETA)

The federal legislation that governs GST/HST in Canada. All GST/HST rules, rates, exemptions, rebates, and compliance obligations flow from the Excise Tax Act and its regulations.

Exempt Supply

A good or service on which no GST/HST is charged and for which the supplier cannot claim Input Tax Credits on related expenses. Common examples include residential rent, most health and educational services, and most financial services. Unlike zero-rated supplies, exempt supplies are outside the GST/HST system entirely.

Goods and Services Tax (GST)

The federal 5% tax that applies across all of Canada on most taxable goods and services. In provinces that participate in the HST, the GST is combined with the provincial component into a single harmonized rate. In non-HST provinces, the GST applies alongside a separate provincial sales tax.

GST/HST Credit

A tax-free quarterly payment from the CRA to help individuals and families with low and modest incomes offset the GST or HST they pay. As of July 2026, the program was renamed the Canada Groceries and Essentials Benefit (CGEB) with 25% higher payments. Eligibility is automatically assessed when you file your annual income tax return.

Harmonized Sales Tax (HST)

A combined federal and provincial sales tax used in five provinces: Ontario (13%), Nova Scotia (14%), New Brunswick (15%), Newfoundland and Labrador (15%), and Prince Edward Island (15%). HST merges the 5% federal GST and the provincial component into a single rate collected and remitted together to the CRA.

Input Tax Credit (ITC)

A credit that allows GST/HST-registered businesses to recover the GST/HST they paid on eligible business inputs (expenses and purchases used in commercial activities). ITCs reduce the net tax a business remits to the CRA. If ITCs exceed GST/HST collected, the CRA issues a refund.

Net Tax

The amount a business owes to (or is owed by) the CRA after subtracting Input Tax Credits from GST/HST collected. Net tax = GST/HST collected from customers − ITCs on business expenses. A positive net tax means you remit to the CRA; a negative net tax means you receive a refund.

Nil Return

A GST/HST return filed when a registered business has no taxable sales or purchases to report for a period — all fields are $0. Even with no activity, a nil return must still be filed by the due date to avoid late-filing penalties.

Place of Supply

The rule that determines which province's GST/HST rate applies to a transaction. In general, the place of supply follows the customer's location (destination), not the seller's location. An Ontario business selling goods to a BC customer charges 5% GST — not 13% HST — because the place of supply is BC.

Provincial Sales Tax (PST)

A separate provincial tax charged in addition to the federal GST in British Columbia (7%), Manitoba (7% RST), Saskatchewan (6%), and Quebec (9.975% QST). PST is administered by the provinces, not the CRA (except in Saskatchewan). PST is calculated on the pre-tax price in parallel with GST — it is not charged on top of GST.

Quebec Sales Tax (QST)

Quebec's provincial sales tax, currently 9.975%, administered by Revenu Québec (not the CRA). The QST applies alongside the federal 5% GST, making the combined tax on most Quebec purchases 14.975%. Businesses in Quebec file separate GST and QST returns.

Registrant

Any individual, business, or organization that is registered for GST/HST with the CRA. Registrants must collect GST/HST on taxable supplies, file returns on schedule, and remit net tax to the Receiver General. Registration is mandatory once taxable revenues exceed $30,000 per year.

Reporting Period

The time period covered by a GST/HST return — monthly, quarterly, or annual, depending on your business revenue. Monthly filers (over $6M revenue) report every month. Quarterly filers ($1.5M–$6M) report every three months. Annual filers (under $1.5M) report once per year.

Selected Listed Financial Institution (SLFI)

A specific category of financial institution (such as banks, insurance companies, and investment funds operating in multiple provinces) that follows special GST/HST rules and is exempt from the mandatory electronic filing requirement.

Small Supplier

A business or individual whose total worldwide taxable revenues over four consecutive calendar quarters do not exceed $30,000. Small suppliers are not required to register for GST/HST, though they may register voluntarily to claim ITCs.

Zero-Rated Supply

A taxable supply on which the GST/HST rate is 0%. No tax is charged to the customer, but the supplier can still claim Input Tax Credits on related business expenses. Common examples include basic groceries (unprepared food), prescription drugs, most exports, and certain agricultural products. This is different from exempt supplies, where ITCs cannot be claimed.

Understanding these key GST/HST terms is the foundation for accurate compliance — whether you are a business owner managing remittances or an individual tracking your quarterly benefit payments. When in doubt, the official CRA website at canada.ca is the authoritative source for definitions and current rules.