The Goods and Services Tax (GST) is a federal value-added tax applied to most goods and services sold in Canada. Currently set at 5%, GST is charged at each stage of production and distribution, with businesses claiming input tax credits for GST paid on their purchases, so the tax effectively applies only to final consumer spending. In provinces that have harmonized with the federal system, the Harmonized Sales Tax (HST) combines federal GST with provincial sales tax into a single rate collected by the federal government—13% in Ontario, 15% in Atlantic provinces. Non-harmonizing provinces (BC, Saskatchewan, Manitoba, Quebec) have separate provincial sales taxes. Municipalities are eligible for GST/HST rebates on their purchases, recovering a significant portion of taxes paid. The GST/HST is a major federal revenue source, funding national programs and transfers to provinces. Essential items like basic groceries, prescription drugs, and some services are GST-exempt or zero-rated.