Part of The trucking guide
GST/HST for trucking companies
Freight has its own GST/HST rules. The rate depends on where the load is going, some cross-border moves are taxed at zero, and carriers can claim back the tax on fuel, repairs and trucks. Here's how it works, with examples.
Key takeaways
- Register once your taxable sales pass $30,000 in a quarter or over four quarters in a row
- For a domestic load, the rate generally follows the freight's destination. A load from Alberta to Ontario is charged 13% HST
- International freight, and domestic legs of a continuous cross-border move, are generally zero-rated
In Alberta there's no provincial sales tax, so many local businesses only ever deal with the 5% GST. Carriers don't get off so lightly. Haul a load to Ontario or the Maritimes and you're charging harmonized sales tax (HST). Haul one to the US and you may not charge tax at all.
This article is part of our guide to the financial side of running a trucking company.
Do you need to register?
You must register for GST/HST once your taxable sales (including zero-rated freight) go over $30,000 in a single calendar quarter, or over the last four quarters combined. Below that you're a "small supplier" and registering is optional.
Most carriers should register even if they're small. Once you're registered, you can claim back the GST/HST you pay on fuel, repairs, tires and trucks. On a $150,000 tractor, that's $7,500 of GST.
How often you file
| Annual taxable sales | Filing frequency |
|---|---|
| $1.5 million or less | Annual (you can choose quarterly) |
| $1.5 million to $6 million | Quarterly |
| Over $6 million | Monthly |
Many small carriers choose quarterly filing even when they could file annually, especially if they usually get a refund (common in a year with big equipment purchases), or so a year's worth of GST doesn't build up into one large payment.
Which rate to charge on a load
For freight moved within Canada, the place of supply, and so the rate, is generally set by the destination of the freight.
Example: three loads from the same Edmonton yard
| Load | Destination | Freight charge | Tax |
|---|---|---|---|
| Edmonton → Regina | Saskatchewan (GST only) | $2,600 | 5% GST = $130 |
| Edmonton → Mississauga | Ontario (HST) | $5,800 | 13% HST = $754 |
| Edmonton → Halifax | Nova Scotia (HST) | $8,900 | HST at Nova Scotia's current rate |
HST rates differ by province and can change. Nova Scotia lowered its rate in 2025, for example. Your invoicing should look up the current rate for the destination province, not use a fixed percentage.
Common mistake: charging 5% GST on everything because "we're an Alberta company." The CRA can assess you for the HST you should have collected, whether or not you can go back to your customer for it.
Cross-border and international freight
Freight that moves into, out of, or outside Canada is generally zero-rated. That means it's taxable at 0%. You don't charge your customer GST/HST, but you can still claim back the tax on your costs.
Example: a cross-border load
A carrier hauls a load from Calgary to Montana for a US shipper. The move is international freight, so it's zero-rated: no GST/HST on the invoice. The fuel bought in Alberta for the trip still has GST in it, and the carrier claims that back as an input tax credit.
Domestic legs of an international move
The domestic leg of a continuous movement of freight into or out of Canada can also be zero-rated. For example, a load picked up in Red Deer that's part of a continuous shipment to the US, handed off to another carrier at the border. The rules for this, and for interlined freight between carriers, have specific conditions and paperwork requirements. Keep the bill of lading or other documents showing the whole route. When in doubt, ask before you invoice.
Claiming back what you pay: input tax credits
As a registrant, you can claim input tax credits (ITCs) for the GST/HST you pay on business costs:
- Fuel, DEF and oil
- Repairs, parts and tires
- Trucks and trailers, bought or leased
- Insurance? No. Insurance is GST-exempt, so there's no GST on it to claim back.
- Permits and plates? Usually not. Most government licences and fees don't include GST.
Example: a month of costs for one tractor
| Cost (before tax) | GST paid | ITC claimed |
|---|---|---|
| Fuel $8,200 | $410 | $410 |
| Repairs and tires $1,900 | $95 | $95 |
| Lease payment $3,100 | $155 | $155 |
| Insurance $1,500 | — | — |
| Total | $660 | $660 |
That's $660 a month, about $7,900 a year, back in the business. Only if every receipt is kept and coded correctly. A fuel-card statement only supports an ITC if it shows the supplier's GST number and the tax, so check that yours does.
Owner-operators leased to a carrier
If you're an owner-operator leased to a carrier, you're usually providing a service to the carrier and charging GST/HST on your settlements once you're registered. The carrier claims that back as an ITC. The arrangement and the rate depend on how your lease is set up. Check your settlements show GST/HST correctly, and make sure you're claiming your own ITCs on fuel and repairs.
Keep the GST/HST separate
The tax you collect isn't your money. Move it to a separate account when your customers pay, as we explain in cash flow for carriers. Then filing is a transfer, not a scramble. GST/HST is also one of the steps in our month-end checklist.
The bottom line
GST/HST on freight follows the load, and the details matter. Getting the rate right on every invoice, and claiming every credit on every fuel receipt, can be worth thousands a year. See our GST/HST service, or get in touch to have us review your invoicing.
Sources
This article is general information, not advice for your situation. Rules and rates change, so talk to us before acting on it.