If your Canada Post shipment includes both a GST and an HST tax line, it does not mean you were taxed twice. When a shipment includes a pickup service, the pickup and transportation portions are treated as separate services and may be taxed differently based on where each service is provided.
Why Does This Happen?
When a Canada Post shipment includes a scheduled pickup:
- The pickup service is taxed based on the province where the package is picked up.
- The transportation service is taxed based on the applicable tax rules for the shipment destination.
Because these are separate services, different tax rates may apply.
Example
If a shipment is picked up in British Columbia and delivered to Ontario:
- The pickup charge is subject to 5% GST.
- The transportation charge is subject to 13% HST.
| Charge | Tax Applied |
|---|---|
| Canada Post Pickup | 5% GST |
| Transportation Charges | 13% HST |
What You'll See on Your Invoice
Your shipment breakdown may include separate tax lines such as:
- TAX - GST (pickup service)
- TAX - HST (transportation service)
These taxes apply to different portions of the shipment and are not duplicate charges.
Frequently Asked Questions
Was I taxed twice?
No. Each tax line applies to a different service component. The pickup service and transportation service are taxed separately according to the applicable provincial tax rules.
Why doesn't this happen on every shipment?
Separate GST and HST tax lines are most commonly seen when a Canada Post pickup service is included. If no pickup is requested, or if both services are taxed under the same provincial tax rules, you may only see a single tax line.
Key Takeaway
Seeing both GST and HST on the same Canada Post shipment is normal when a pickup service is included. Each tax applies to a different service component, so you are not being taxed twice.