Start with the global decision boundary
The global framework still owns price, cost, contribution, margin and capacity. Canadian GST/HST registration and place-of-supply rules determine the tax layer used to move between the customer charge and retained-revenue basis.
Apply the exact local rule delta
| Local question | Reviewed source boundary | Planning action |
|---|---|---|
| Does registration require review? | CRA guidance uses a reviewed C$30,000 small-supplier limit with distinct single-quarter and previous-four-quarter tests for most businesses. | Check both periods and relevant exceptions against current CRA guidance. |
| Which rate applies? | The reviewed classes include 0%, 5%, 13%, 14% and 15%. | Confirm the supply class and place of supply; do not use a national default. |
| Can location be inferred? | CRA place-of-supply rules determine the applicable provincial rate context. | Use confirmed transaction facts rather than inferring from an address field. |
Stop checks before using the scenario
- Check both reviewed small-supplier test periods. (not complete)
- Confirm whether the actual supply is taxable, zero-rated or otherwise treated. (not complete)
- Confirm the place of supply from transaction facts. (not complete)
- Select the current CRA rate class only after those checks. (not complete)
- Keep tax collected separate from retained revenue in the margin scenario. (not complete)
Test a labelled local scenario
Local boundary example
This is a reproducible planning example using stated facts. It is not a market benchmark, eligibility decision, legal conclusion or tax calculation.
| Scenario item | Stated base case | Boundary or next check |
|---|---|---|
| Ex-tax business price | C$100 user scenario | Global economics are tested before tax |
| Supply and place of supply | Confirmed from the actual transaction | Required before choosing the reviewed rate class |
| Customer charge | Calculated only after the rate is confirmed | No nationwide default is supplied |
Use the registered planner after the boundary is confirmed
- Canada GST/HST-aware Pricing Planner
Protect retained margin while separating a confirmed combined GST/HST rate from displayed price
Local boundary questions
- Is Canada’s GST/HST rate always 5%?
- No. The applicable reviewed class depends on supply and place of supply. Confirm the transaction before selecting a rate.
- Can I infer the rate from my business address?
- No. Use the actual place-of-supply facts and current CRA guidance; seller location alone is not a safe rate selector.
Quote a professional service after the tax boundary is confirmed
For a professional-service quote, keep the service scope, delivery capacity, commercial rate and target contribution in the Global quote workflow. Separately record the Canadian registration, supply-class and place-of-supply facts before selecting a GST/HST treatment. The tax layer must not become a default rate, retained-revenue assumption or substitute for a scoped quote.
| Record | Fictitious example | Required boundary |
|---|---|---|
| Service scope | Advisory project with named deliverables and exclusions | Commercial scope belongs in the quote, without customer identity in the download template. |
| Ex-tax quote basis | C$5,000 fixed-project assumption | Illustrative input only; Margin101 does not recommend the amount. |
| GST/HST facts | Registration, supply class and place of supply confirmed separately | Choose a rate only after those facts are verified against current CRA guidance. |
Confirm the tax boundary, then build the service quote
- Canada GST/HST Registration Decision Tool
Review a supported Canadian GST/HST registration and place-of-supply scenario with the resulting price and margin
- Canada GST/HST-aware Pricing Planner
Protect retained margin while separating a confirmed combined GST/HST rate from displayed price
- Service Rate & Quote Planner
Set a viable rate and project quote
Reviewed official sources
- Margin101 DataHub: Canada GST/HST small-supplier threshold tests — Margin101: Retained evidence, supported claim and source review history.
- Margin101 DataHub: Canada GST/HST rates by place of supply — Margin101: Retained evidence, rate-class scope and place-of-supply boundary.
- When to register for and start charging GST/HST — Canada Revenue Agency: Small-supplier threshold and test-period boundaries.
- Charge and collect the tax: place-of-supply rules — Canada Revenue Agency: Current rate classes and place-of-supply boundary.