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Why GST and HST May Appear Separately on Canada Post Shipments

If your Canada Post shipment shows both a GST and an HST tax line, it does not necessarily mean you were taxed twice.

When a shipment includes a Canada Post pickup service, the pickup charge and the transportation charge are separate service components and may be subject to different tax rates.

Why Does This Happen?

For Canada Post shipments with a scheduled pickup:

  • The pickup service may be taxed based on the province where the pickup takes place.
  • The transportation service is taxed according to the applicable rules for the shipment destination.

If the pickup and destination are in provinces with different GST/HST rates, your shipment breakdown may show more than one tax line. (support.shiptime.com)

Example: British Columbia to Ontario

If a shipment is picked up in British Columbia and delivered to Ontario:

Charge Tax Applied
Canada Post Pickup 5% GST
Transportation Charges 13% HST

British Columbia is currently subject to 5% GST, while Ontario uses 13% HST.

The taxes are being applied to different portions of the shipment, rather than the same charge being taxed twice.

What Will I See on My Shipment?

Your shipment or invoice breakdown may include separate lines such as:

  • TAX - GST
  • TAX - HST

For a shipment with a Canada Post pickup, one tax line may relate to the pickup charge while the other relates to the transportation charges.

Frequently Asked Questions

Was I taxed twice?

No. When this occurs because of a Canada Post pickup, the GST and HST are being applied to different service components.

You are not being charged both GST and HST on the same portion of the shipment.

Why doesn't this happen on every Canada Post shipment?

Separate GST and HST lines are most commonly seen when a pickup service is included and the applicable tax treatment of the pickup differs from the transportation service.

If no pickup charge applies, or both service components are subject to the same tax rate, you may see only one tax line.

Can the tax rates be different for other provinces?

Yes. GST/HST rates vary by province.

For example, Ontario currently uses 13% HST, while British Columbia, Alberta, Manitoba, Saskatchewan, Quebec, and the territories use 5% GST for GST/HST purposes. Other participating provinces use their applicable HST rate.

Have Questions About the Taxes on Your Shipment?

If you're unsure why separate GST and HST lines appear on your Canada Post shipment, contact our Heroic Support™ team. We can help you review the shipment breakdown and clarify which charges each tax line applies to.

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