Northwest Territories (NWT) is unique among Canadian provinces and territories because it currently does not have a sales tax. Instead, the federal Goods and Services Tax (GST) of 5% applies to most goods and services purchased within the territory. Here’s what you need to know:
Key Points about Sales Tax in NWT:
- No territorial sales tax: Unlike many provinces that have a Provincial Sales Tax (PST) or a Harmonized Sales Tax (HST), NWT does not impose an additional sales tax beyond the federal GST.
- 5% GST: The federal Goods and Services Tax (GST) applies to most purchases in NWT. This includes items like groceries, gas, and services, with some exceptions for certain essential items, such as basic groceries or prescription drugs.
GST Registration for Businesses:
Businesses operating in NWT are required to register for GST if their annual revenue exceeds $30,000. They must charge the 5% GST on taxable goods and services and remit it to the federal government.
Exemptions:
Some goods and services are GST-exempt or zero-rated, meaning no GST is charged, including:
- Basic groceries
- Certain health care services
- Educational services
