Hst: a 13% combined version of federal sales tax (gst, 5%) & provincial sales tax (pst, 8%). Consumption taxes : taxes charged to consumers and collected by businesses to be remitted to the government. Commercial activity: having commercial activity requires a business to collect hst. Input tax credits (itcs): credit against hst remittance for the consumption taxes paid by a business related to the commercial activity. Itcs not recoverable for businesses on m&e, club dues, luxury cars, and personal expenses. k sales: if sales are less than ,000, a business does not need to reg ister and remit. Businesses can elect to register if sales are less than ,000 to get the itcs. Drugs, medical devices, basic groceries, and exports. No hst is charged on sales but hst paid on purchases is refundable as an itc. Health care, child care, mush (municipalities, universities, schools, and hospitals), financial services, and sales of used residential housing and rental of homes.