GST, HST, QST, PST: a manicure appointment in four provinces

What to take away

Which tax applies to a manicure appointment in the four provinces

A manicure appointment is a taxable supply in Canada. The federal Goods and Services Tax is imposed under the Excise Tax Act, applies everywhere at 5 per cent, and is collected by the Canada Revenue Agency. Some provinces fold their provincial tax into a Harmonized Sales Tax; others keep a separate provincial sales tax, and the three territories charge GST alone.

The same manicure carries a different total in Toronto, Montreal, Vancouver and Calgary.

The table shows each province's general rates. The British Columbia row is not what a manicure carries: BC's PST does not apply to nail care, so the service itself takes GST only, and the 7% lands on retail products you sell separately.

Rates move, and provinces publish them differently: Ontario and the Atlantic provinces quote a single HST figure, while Quebec, British Columbia, Saskatchewan and Manitoba quote the federal and provincial parts separately. A salon outside the four provinces covered here should confirm its own rate and whether its provincial tax reaches personal services with the Canada Revenue Agency or its provincial finance ministry before printing a price list.

Small suppliers can be exempt from registering for GST/HST, based on taxable revenue in a single calendar quarter and over four consecutive calendar quarters; the test is set out in section 148 of the Excise Tax Act and explained in the CRA's GST/HST Memorandum 2-2, Small Suppliers. Cross the threshold and registration is mandatory. Many owners register earlier to claim input tax credits on chairs, sterilizers, rent and supplies.

Ontario HST and what it does to your listed price

Ontario charges 13 per cent HST. Manicures, pedicures and most personal care services are taxable. There is no general exemption for nail services. A health-related service performed by a regulated health professional may be exempt, but a standard manicure is not.

Your listed price is either tax-included or tax-extra, and Ontario salons usually advertise the price plus HST. If you advertise tax-included, you still remit the HST portion. The money was never yours.

Ontario's HST guidance covers the Ontario First Nations relief from the provincial part of the HST, which rarely comes up in a nail salon. For the federal side, the Canada Revenue Agency's General Information for GST/HST Registrants is the guide to keep on the shelf.

Work backwards from what you need to keep. A manicure listed at $50 plus HST costs the client $56.50 and leaves $6.50 to remit.

The same manicure listed at $50 tax-included leaves about $44.25 to keep and $5.75 to remit. That gap decides whether the service is worth the chair time, which is the whole argument for pricing a service for margin rather than matching the salon down the street.

WSIB coverage and municipal licensing are not taxes on the service, but they belong in the same price. A price that ignores them is a guess.

Quebec GST and QST for a Montreal salon

Quebec charges GST at 5 per cent and QST at 9.975 per cent, adding 14.975 per cent to a manicure. Revenu Quebec administers both taxes for Quebec registrants, so you register and file with the province rather than the CRA.

There is no general exemption for nail care. Tax applies to the service, to retail products you sell, and to any call-out or delivery fee you charge.

Revenu Quebec publishes the QST registration, filing and payment rules. Confirm your filing frequency, deadlines and the current QST rate there before you set prices.

Registration is required once you pass the small supplier threshold on taxable supplies. Below it, you can register voluntarily to recover GST and QST on startup costs such as pedicure chairs and sterilizers.

CNESST coverage and city permits sit outside the tax system but inside your break-even point.

Separating tax collected from revenue earned is what makes a 14.975 per cent rate manageable, and it is one reason service packages should be priced with the tax already in the arithmetic.

British Columbia: GST on the manicure, PST on products

British Columbia has no HST. It charges GST at 5 per cent and PST at 7 per cent, administered separately: the CRA for GST, the BC Ministry of Finance for PST.

PST applies to many goods and some services, but not to the manicure itself. The Ministry's Bulletin PST 138, Personal Services, lists nail care among personal services that are not subject to PST, and treats a file a client keeps after an all-inclusive manicure as incidental to the non-taxable manicure service. A Vancouver salon charges GST on the appointment, and needs a PST number only if it also sells taxable goods, such as polish, lotions or cosmetics sold to clients.

PST in British Columbia is imposed under the Provincial Sales Tax Act, and the BC Ministry of Finance publishes the registration, filing and exemption rules for small business, including credits an operator can claim. The same bulletin lists the equipment and supplies a nail salon pays PST on, such as manicure chairs, lamps, files and polishes used on clients.

Retail products are separate. Nail polish, tools and giftware sold on their own usually carry PST. Selling a bottle of polish together with a manicure is a bundled sale under the bulletin, so keep invoices clear about what was sold. Vancouver Coastal Health inspections and WorkSafeBC coverage sit alongside tax in your pricing.

Alberta and provinces without a provincial sales tax

Alberta has no provincial sales tax. A Calgary or Edmonton salon charges GST at 5 per cent and nothing else on the service. The advertised price is simpler, but the 5 per cent still has to be registered for, filed and remitted.

Do not assume a neighbouring province works the same way. Provinces have introduced, changed and reinstated retail sales taxes over the years. Check the current rules for every province where you operate.

A salon with locations in more than one province charges the tax that applies at the place of supply. For a service, that is where the service is performed. A client from Alberta booking a manicure in Toronto pays Ontario HST. A client from Ontario booking in Calgary pays GST.

That rule lands on your booking software. Tax should follow the salon location, not the client's address, and an online deposit follows the same place-of-supply rule as the service it is paid against.

How tax changes deposits, refunds and cancellation fees

Decide first whether your advertised price includes tax, then build deposit and refund rules around that decision. Everything downstream depends on it.

A deposit is an advance payment for the manicure, not a separate taxable supply. When the service is performed, the full price including tax is recorded and the deposit is applied against it. If the client cancels and you keep the deposit as a cancellation fee, that fee is still consideration for a supply and still taxable.

Refunds run in reverse. Refund a manicure and you refund the tax, then adjust your return. A full refund of an HST charge lets you recover the HST you remitted. Keep the credit note.

A Montreal salon charges $60 plus GST and QST for a manicure, so tax is $8.99 and the client pays $68.99. The salon takes a $20 deposit at booking and collects the remaining $48.99 at the appointment.

It records $60 in revenue and $8.99 in tax collected.

If the client cancels and the salon keeps the $20, the salon still accounts for tax on that $20.

Clients accept a clear rule and argue about a vague one. A template that states price, tax treatment, deposit and cancellation terms keeps the move from enquiry to quote identical every time.

Filing returns and keeping the tax money separate

GST/HST returns go to the CRA, online, by phone, by mail or through a preparer. The CRA guide on how to file your GST/HST return covers the methods, the filing frequency and the information you need. Most small salons file quarterly or annually.

Five steps make up the routine:

Input tax credits reduce what you owe. GST or HST paid on salon chairs, sterilizers, towels, software and commercial rent is generally recoverable, which is why clean records matter more than a shoebox of receipts. The CRA's business taxes hub collects registration, filing and payroll obligations in one place.

Cash flow is the hard part. Tax collected is not revenue, but it sits in your account until you remit it, and spending it means borrowing from the government at a bad rate.

A monthly transfer to a tax savings account removes most of that risk. Track the balance next to monthly metrics for a nail salon such as average ticket and rebooking rate.

If revenue falls, your filing frequency may change. If you stop operating, file a final return and cancel your registration. If you sell the business, tax on the sale of assets is a separate matter from tax on services. Get advice before you sign.

Common questions

Do I charge GST on a manicure in every province?

Yes. GST at 5 per cent applies across Canada. Ontario folds its provincial portion into 13 per cent HST, Quebec adds 9.975 per cent QST, and British Columbia and Alberta add nothing to the service, because BC's PST does not apply to nail care.

Is a deposit for a manicure appointment taxable?

In most cases, yes. A deposit is an advance payment for a taxable service, so tax applies when the service is supplied, or when you keep the deposit as a cancellation fee.

Do I need to register for PST in British Columbia?

Only if you sell taxable goods there. Nail care is a non-taxable personal service for PST, but polish, lotions and cosmetics sold to clients are taxable, so a salon with a retail shelf registers before it charges PST on those sales.

Can I advertise tax-included prices?

Yes, as long as you remit the correct tax portion and say clearly that the price includes tax. Clients who assume a price is tax-extra will feel misled when the total changes at checkout.