A Guide to HST and PST on Roofing Quotes in Ontario

What to take away

Ontario has one 13% HST on roofing labour and materials. British Columbia charges 5% GST plus 7% PST, and the PST applies to materials but generally not to the labour portion of a roof replacement.
A quote should state whether tax is included or extra, and the invoice must match that wording. Changing it later is where disputes start.
Tax is calculated on the price after discounts, not before them.
Contractors must register and charge tax once they pass the small supplier threshold, and the threshold counts revenue, not profit.
Getting this wrong costs money twicethe contractor remits tax that was never collected, and the client is left holding an invoice they did not agree to.

Who sets the tax rules

Sales tax on a roofing job is set by the federal government and the province, not by the municipality. A city issues the building permit and inspects the work. It does not decide whether you charge HST.

Ontario vs BC Roofing Tax

Ontario

Tax structure: One 13% HST
Provincial rate: 8% inside HST
Quote shows: Single tax figure
Administered by: Canada Revenue Agency

British Columbia

Tax structure: 5% GST + 7% PST
Provincial rate: 7% PST separate
Quote shows: Two tax lines
Administered by: Province plus CRA

In Ontario, the Canada Revenue Agency administers the 13% Harmonized Sales Tax, which combines the federal 5% and the provincial 8% into one line. Ontario has no separate provincial sales tax on roofing. The federal Excise Tax Act, Part IX, governs GST/HST.

British Columbia runs a different system. The province charges 7% PST on top of 5% GST. The BC Ministry of Finance administers PST under the Provincial Sales Tax Act. The British Columbia PST rules explain the rules for real-property contractors there; do not assume that BC treatment applies to an Ontario quote.

What triggers tax on a roofing job

A written quote is not a tax document. The invoice is. Under GST/HST timing rules, tax generally becomes payable when the consideration is paid or becomes due; the contract and invoice timing matter.

What Triggers Tax on a Job

Ontario

Roof replacement: 13% HST on whole price
Labour of installing: Taxable at 13%
Repair: Same as replacement
Residential rate: No reduced rate
Cash payment: No exemption

British Columbia

Roof replacement: PST on materials only
Labour of installing: Generally no PST
Repair: Granular treatment
Residential rate: No reduced rate
Cash payment: No exemption

A roof replacement is usually a single supply of a service with materials included. In Ontario, the whole price attracts 13% HST. The BC comparison in the table is a reminder that tax treatment differs by province; Ontario has no separate PST.

The Provincial Sales Tax page gives general background. For a BC roofing quote, use the BC Ministry of Finance guidance for real-property contractors; Ontario roofers should not add a separate PST line.

A repair is treated the same way as a replacement in Ontario. There is no reduced rate for residential roofing, and no exemption for a homeowner who pays cash.

Which line items are taxable

Ontario HST

Tear-off labour: Taxable at 13%
Shingles and underlayment: Taxable at 13%
Flashing and vents: Taxable at 13%
Disposal and dump fees: Taxable at 13%
Permit fee paid to the city: Taxable at 13% when re-billed

BC GST plus PST

Tear-off labour: GST taxable, PST generally not applied to labour
Shingles and underlayment: GST taxable, PST applies to materials
Flashing and vents: GST taxable, PST applies to materials
Disposal and dump fees: GST taxable, PST depends on the service supplied
Permit fee paid to the city: GST taxable when re-billed

In Ontario, tear-off labor, shingles and underlayment, flashing and vents, and disposal and dump fees are taxable as part of the roofing supply. A permit fee is a cost the contractor pays and passes on. When it is re-billed as part of the contract price, it is part of the taxable supply.

A quote that says "plus tax" and an invoice that says "tax included" are two different contracts. Pick one and keep it.

How to invoice correctly in CAD

Show the subtotal in Canadian dollars and mark the currency if the client is outside Canada.
Apply any discount before you calculate tax, never after.
Show the tax as a separate line with its rate; if registered, include your GST/HST registration number.
State the payment terms and the deposit already received.
Keep the quote, the signed acceptance and the invoice together for six years.

The Invoice page covers the components a tax authority expects to see on a business document. Treat deposits and holdbacks carefully: HST generally applies when an advance payment is received, while a genuine refundable security deposit generally is not consideration until applied to the contract. Track holdbacks separately and confirm when they become due under the contract and applicable Ontario Construction Act requirements.

Roofing work outside Ontario

For work on property in another province, place-of-supply rules generally look to where the real property is located. Check the CRA rules before choosing a rate; the contractor's or customer's address alone may not determine the tax treatment.

What happens if you get it wrong

Under the Excise Tax Act, the Canada Revenue Agency can assess tax that a contractor failed to collect, along with applicable interest and penalties. The contractor may owe that amount, not the homeowner. If you undercharged HST on a completed job, you cannot simply go back and demand the difference from a client who already paid the quoted amount.

The amount at stake depends on the taxable work and the tax that was not collected, along with any applicable interest and penalties. Review the tax treatment before sending the quote rather than relying on a general estimate of the possible cost.

There is a second consequence. A homeowner who receives an invoice higher than the quote can file a complaint with Consumer Protection Ontario, and the contractor carries the reputational cost even when the tax treatment was technically correct.

Where the quote and the tax meet

Build tax into the quote from the first estimate rather than bolting it on at the end. A quote that shows the pre-tax price and the tax line separately gives the client a clear picture and protects you if the rate or the rules change before the work starts.

Ontario roofers who also work across provincial lines should check CRA place-of-supply rules before applying Ontario's rate. The overview of how Canadian roofers quote GST and HST provides broader context. Alberta contractors face a different set of questions, and hail-belt economics in Alberta shows how storm claims change what appears on the invoice.

For first-time registrants, the Canada Revenue Agency's RC4022, General Information for GST/HST Registrants, covers registration and GST/HST obligations, including input tax credits.