Tax· 6 min
GST and QST on construction work: what to know
Understanding how taxes apply to construction contracts, and the traps to avoid.
Construction taxes are a place where small errors cost real money. Here's the baseline.
GST (5%) and QST (9.975%) apply to the total before tax. The taxes-included total on a $10,000 bid is therefore $11,497.50.
Residential renovations have special rules. Some personal-use renovations are exempt; others qualify for a partial rebate.
Lump-sum vs. cost-plus contracts. Lump-sum taxes the final amount; cost-plus taxes each pass-through transaction. That can add up to a significant difference at reconciliation.
This post isn't accounting advice — talk to your accountant for your specific situation.