Yukon does not have a provincial sales tax (PST). In fact, it is one of the few jurisdictions in Canada that does not impose a territorial sales tax. The only sales tax applicable in Yukon is the federal Goods and Services Tax (GST), which is currently set at 5%.
Here’s a breakdown of the key points related to sales tax in Yukon:
1. Goods and Services Tax (GST)
- Rate: 5%
- The GST applies to most goods and services sold in Yukon, similar to the rest of Canada.
- Some goods and services may be exempt from GST or zero-rated, such as basic groceries, prescription drugs, and certain medical devices.
2. No Provincial or Territorial Sales Tax
- Yukon does not have its own territorial sales tax. This means that unlike other provinces, such as British Columbia or Ontario, Yukon residents and businesses only pay the 5% GST on applicable purchases.
3. Harmonized Sales Tax (HST)
- Yukon does not participate in the HST system, which is a combination of the federal GST and a provincial sales tax applied in certain provinces (e.g., Ontario, Nova Scotia).
4. Exemptions and Special Cases
- Businesses and individuals operating in Yukon must still follow federal rules regarding GST collection and remittance.
- Some services, such as health care or education, are exempt from GST.
This lack of a territorial sales tax can be seen as an advantage for residents and businesses, as it helps keep the overall tax burden lower compared to other regions in Canada.
