• Canada has both a national sales tax and provincial sales taxes.Canadian Flag image by Lucy Cherniak from Fotolia.com
  
  Regulated by the Canada Revenue Agency and by provincial governments, sales taxes apply to many goods and services throughout the Canada. While there is a general tax applicable to the entire country on certain products, provinces also have their own taxes and rules regarding taxation. Recently, a "harmonized sales tax" has sought to unify the two.
  
  

Goods and Services Tax

• Basic groceries, including fresh vegetables, are not taxed under the GST.four wet peppers image by davidcrehner from Fotolia.com
  
  This tax, often abbreviated as the GST, is a national tax added to most goods and services in Canada. The buyer of a good or service must pay an additional 5 percent (down from 6 percent before January of 2008) in taxes on that item. It is up to the seller to collect this fee and consign it the government. There are certain goods and services exempt from the GST. These include certain exported goods and services, as well as basic groceries, agricultural products and prescription drugs.
  
  

Provincial Sales Tax

• This is a sales tax that is applied in addition to the national GST. Provincial Sales Taxes vary depending on province. Often, they are higher than the 5 percent required by the GST. Some provinces that still carry this tax include Quebec (with a 7.95 percent additional sales tax as of 2010) and Saskatchewan (5 percent). The goods and services that are exempt from these taxes are similar to those exempt from the GST, and generally include certain basic necessities.
  
  

Harmonized Sales Tax

• Music lessons are exempt from the Harmonized Sales Tax.Violin image by Jan Bandolik from Fotolia.com
  
  The HST, or harmonized sales tax, is a tax that combines and replaces both the GST and PST in provinces that have adopted it. This federally administered tax varies according to province, and, in most cases, goods and services exempt from the GST will also be exempt from HST. Goods and services that are specifically exempt from the HST include such things as used residential housing, medical services, legal aid services and even music lessons. Effective July 1, 2010, participating provinces will include British Columbia, Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador.