Retail Sales Tax

Retail Sales Tax (RST) is a consumption tax. This means that the person who consumes or uses the taxable goods or taxable services pays the RST.

RST is applied to:

• taxable goods
• taxable services
• admission prices
• insurance premiums

that people buy or use in Ontario.

The general RST rate in Ontario is 8%.

The other RST rates for certain goods and services are:

• accommodation for a period of less than one month - 5%
• admissions of more than $4 to places of amusement - 10%
• alcoholic beverages sold through licensed establishments - 10%
• alcoholic beverages sold through retail stores - 12%
• alcoholic beverages taken from your inventory for your own use or provided free of charge - 12%

View a list of previous Retail Sales Tax rates.

Vendors who are registered with the Ministry of Revenue collect the tax when they sell taxable goods and services, admissions and/or insurance premiums. By law, they must have a Vendor Permit and are responsible for collecting and remitting the tax.

A RST Vendor Permit is required to charge, collect, and remit RST on your taxable sales.

You must obtain an RST Vendor Permit if you:

• regularly sell taxable goods
• regularly provide taxable services
• regularly sell insurance
• charge more than $4 admission to a place of amusement
• are a manufacturing contractor, that is, the manufactured cost of goods you use in real property contracts is more than $50,000 in any fiscal year
• are a non-resident contractor doing business in Ontario
• sell taxable goods or services at flea markets, fairs or exhibitions
• regularly import taxable goods or taxable services into Ontario for your own use
• purchase goods exempt from RST that you plan to resell, but later take these goods from inventory for your own use.

There is no fee to apply for a Vendor Permit. You can register for a Retail Sales Tax Vendor Permit:

• by calling the ministry at 1 866 ONT-TAXS (1 866 668-8297)
• by mailing or faxing the Vendor Permit Application form to any Ministry of Revenue Tax Office
• visiting us in person
• at a ServiceOntario Centre, or
• online through the ServiceOntario website

Additional information may also be found in Small Business Pointer 901 - The Basics of Retail Sales Tax.

Vendors file Retail Sales Tax returns on a monthly, bi-monthly, quarterly, semi-annually or seasonal basis. How often RST returns are filed is based on the amount of RST you charge your customers monthly. The filing frequency is explained when you register for a retail sales tax Vendor Permit.

RST returns are due on or before the 23rd day of the month following the end of your filing period, unless you have been authorized to use a special filing period. The due date is printed on the front of every return. If the due date falls on a weekend or holiday, the return is due the next working day. You must file your RST return on time, even if you did not make any sales or charge/collect any RST during the return period.

Instructions on how to complete the RST Return card

File your return online, at your financial institution, by mail or in person