GST/PST Filing Guide for Saskatchewan Businesses

Saskatchewan is one of the few Canadian provinces that still administers its own Provincial Sales Tax (PST) separately from the federal Goods and Services Tax (GST). This means Saskatchewan businesses must navigate two distinct sales tax systems. Here is everything you need to know about GST and PST filing in Saskatchewan.

Understanding GST vs PST in Saskatchewan

Unlike provinces that use the Harmonized Sales Tax (HST), Saskatchewan businesses deal with two separate taxes:

GST (Goods and Services Tax): A 5% federal tax administered by the Canada Revenue Agency (CRA). It applies to most goods and services sold in Canada.
PST (Provincial Sales Tax): A 6% provincial tax administered by the Saskatchewan Ministry of Finance. It applies to taxable goods and certain services sold, leased, or consumed in Saskatchewan.

These taxes are collected, reported, and remitted separately to different government agencies. This is a key distinction — you file GST returns with CRA and PST returns with the Saskatchewan Ministry of Finance.

GST Registration and Filing

When to Register

You must register for GST if your total taxable revenues (worldwide) exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters. This is known as the "small supplier" threshold. Once you cross this threshold, you must register within 29 days.

Voluntary registration: Even if you are below the $30,000 threshold, you can voluntarily register for GST. The primary benefit is that you can claim Input Tax Credits (ITCs) on the GST you pay on business purchases and expenses, which can result in a net refund.

Filing Frequency

CRA assigns your GST filing frequency based on your annual taxable revenues:

Annual filing: Revenues of $1,500,000 or less (you can also elect monthly or quarterly)
Quarterly filing: Revenues between $1,500,001 and $6,000,000 (you can also elect monthly)
Monthly filing: Revenues over $6,000,000

Input Tax Credits (ITCs)

One of the main benefits of GST registration is the ability to claim ITCs. You can recover the GST you paid on business purchases and expenses by claiming them on your GST return. This includes GST paid on office supplies, professional fees, equipment, vehicle expenses (business portion), software subscriptions, and most other legitimate business costs.

Important: You must retain proper documentation to support your ITC claims. This includes invoices that show the supplier's GST registration number, the amount of GST charged, and the date of the transaction.

Saskatchewan PST Registration and Filing

When to Register

Unlike GST, there is no minimum revenue threshold for PST registration. If you sell or lease taxable goods, provide taxable services, or bring taxable goods into Saskatchewan for your own use, you must register for a PST vendor's licence. Registration is done through Saskatchewan's eTax Services online portal.

What Is Taxable for PST?

Saskatchewan PST applies to:

Most tangible personal property (goods) sold or leased in the province
Certain services including repair and installation services, accommodation, entertainment, and telecommunications
Insurance premiums
Software and digital products (in many cases)

Common exemptions from PST include basic groceries, prescription drugs, agricultural equipment, children's clothing and footwear, and residential natural gas and electricity.

Filing Frequency

PST filing frequency is determined by the Saskatchewan Ministry of Finance based on your tax collected:

Monthly: If you collect more than $4,800 in PST per year
Quarterly: If you collect between $1,200 and $4,800 per year
Semi-annually: If you collect less than $1,200 per year

PST returns and payments are due on the 20th of the month following the end of the reporting period.

Key PST Difference: No Input Credits

Unlike GST, Saskatchewan PST does not allow general input credits. You cannot recover PST paid on your business purchases (with limited exceptions for goods purchased for resale). This means PST becomes a real cost to your business when you purchase taxable goods and services for your own use.

Common Mistakes to Avoid

1. Mixing Up GST and PST Rules

GST and PST have different rules for what is taxable, different exemptions, and different filing requirements. Do not assume that because something is exempt from GST it is also exempt from PST, or vice versa.

2. Failing to Register on Time

Late registration can result in penalties and the obligation to pay taxes that should have been collected. Monitor your revenues and register as soon as you hit the thresholds — or register voluntarily from the start.

3. Missing Filing Deadlines

Late filing attracts penalties and interest from both CRA and the Saskatchewan Ministry of Finance. Set up calendar reminders for all your filing due dates. Even if you have no tax to remit in a period, you must still file a nil return.

4. Not Keeping Proper Records

Both CRA and the Saskatchewan government can audit your sales tax records. Maintain detailed records of all taxable and exempt sales, all GST and PST collected, and all ITCs claimed. Cloud accounting software can automate much of this tracking.

5. Claiming PST Input Credits

A common error is attempting to claim "input credits" on PST similar to GST ITCs. Saskatchewan PST does not work this way — you can only claim exemptions at the point of purchase using your vendor's licence for goods purchased for resale.

6. Ignoring Out-of-Province and Online Sales

If you sell goods to customers in other provinces or receive goods from out of province, the rules can be complex. Generally, PST applies to goods consumed or used in Saskatchewan. If you sell online to customers in Saskatchewan, you likely have a PST collection obligation.

Need Help with GST/PST Compliance?

Saskatchewan's dual sales tax system can be confusing, but proper setup and ongoing compliance does not have to be a headache. At DLA CPA, we help Saskatchewan businesses register for GST and PST, set up their accounting software to track sales taxes correctly, file returns on time, and resolve any issues with CRA or the Ministry of Finance.