How to read CGL invoices across Canadian provinces (excluding Quebec)

This reference summarizes which provincial taxes are charged to the policyholder on Commercial General Liability (CGL) premiums by province in Canada (explicitly excluding Quebec), and shows how to gross‑up a base premium to the total amount due. Rates and rules are taken from provincial finance/tax authorities and the Canada Revenue Agency as of November 6, 2025.

GST/HST: Premiums for insurance are generally an exempt financial service, so GST/HST is not charged on the insurance premium itself. See CRA GST/HST Memorandum 17‑16 and 17‑9 for the treatment of insurance and broker services.
Provincial retail sales taxes (RST/PST) on insurance: Only certain provinces tax insurance premiums paid by the insured (listed below). Where applicable, this tax is shown as a separate line on the invoice.
Provincial premium taxes paid by insurers: All provinces/territories levy an insurance premium tax on insurers (e.g., AB 3%/4%, BC 4%/4.4%, NS 3%/4%), but this is paid by the insurer and typically embedded in premium, not shown as a separate tax line to the insured. Examples: Alberta Insurance Premiums Tax, BC Insurance Premium Tax Act s.3–5, Nova Scotia Insurance taxes.

Provincial taxes the insured pays on CGL premiums (ex‑Quebec)

Jurisdiction	Tax on CGL premium paid by insured	Notes for invoicing and common exemptions
British Columbia	No PST/RST on premiums from licensed insurers	Premium tax is paid by the insurer. If insurance is placed with an unlicensed insurer, the insured must self‑assess 7% insurance premium tax on the BC‑portion of the risk.
Alberta	No PST/RST on insurance premiums	Insurer pays 3% (life/health) or 4% (other) premium tax; not a separate invoice line to insured.
Saskatchewan	PST 6% applies to most property & liability premiums (incl. CGL)	Life/health and many agri lines are exempt; PST on other insurance remains.
Manitoba	RST 7% on taxable insurance premiums (incl. CGL)	RST is imposed on insurance under s.4.1 of the RST Act.
Ontario	RST 8% on taxable insurance premiums (incl. CGL)	Individual life/health and compulsory auto are RST‑exempt; most commercial P&C (e.g., CGL) is taxable.
New Brunswick	No PST/RST on insurance premiums	Insurer pays premium tax (2% life/accident/sickness; 3% other).
Nova Scotia	No PST/RST on insurance premiums	Insurer pays premium tax (3% life/accident/sickness; 4% other).
Prince Edward Island	No PST/RST on insurance premiums	Insurer pays premium tax (3.75% life/A&S; 4% other).
Newfoundland & Labrador	RST 15% on taxable insurance premiums	Several exemptions apply (e.g., accident & sickness, life, auto; certain personal property lines). CGL is generally taxable.

Notes

Quebec is intentionally excluded from this page per scope and Summit’s service areas.
In all provinces, premiums from licensed insurers do not attract GST/HST; insurance is an exempt financial service under the Excise Tax Act.

Gross‑up examples from a base premium

Illustrative examples for common scenarios (ex‑Quebec). Each assumes a CGL base premium of $1,000 with no other surcharges; taxes are applied to the premium portion attributable to that province.

Ontario (8% RST): Total due = $1,000 + (8% × $1,000) = $1,080. RST basis and exemptions per Ontario Ministry of Finance.
Saskatchewan (6% PST): Total due = $1,000 + (6% × $1,000) = $1,060. PST applies to property/liability classes; life/health exempt.
Manitoba (7% RST): Total due = $1,000 + (7% × $1,000) = $1,070.
Newfoundland & Labrador (15% RST): Total due = $1,000 + (15% × $1,000) = $1,150.
British Columbia (licensed insurer): Total due = $1,000 (no PST/RST on premium when placed with a licensed insurer). If placed with an unlicensed insurer, the insured must self‑assess 7% IPT on the BC‑portion of risk.
Alberta (licensed insurer): Total due = $1,000 (no PST/RST on premium). Insurer‑level IPT (4% on most P&C) is not separately invoiced to the insured.

Tip: For national policies, allocate the premium by province of risk first, then apply each province’s insured‑level tax to its allocated premium share.

Broker compensation and client‑paid fees (tax treatment)

How Summit is compensated: Summit generally earns insurer‑paid commissions and may negotiate a client‑paid fee for complex programs. All compensation is fully disclosed before binding. See Summit's How We Get Paid page for details.
GST/HST on broker services: “Arranging for” an insurance policy is generally an exempt financial service, so commissions are not subject to GST/HST. Administrative services that are not “arranging for” may be taxable and, if charged separately (e.g., a document or admin fee), would attract GST/HST at the applicable rate for the client’s province. References: CRA 17‑9 Insurance agents and brokers, CRA News No. 115 on intermediaries.

Other taxes you might encounter (not usually shown on the invoice)

Federal 10% excise tax on premiums paid to non‑resident (unlicensed) insurers: If a Canadian insured buys coverage from a foreign insurer, the insured may need to file and pay a 10% federal excise tax on the premium (Form B243), unless an exemption applies (e.g., class of insurance unavailable in Canada). For more information, consult the CRA and accounting advisory sources for updates and compliance notes.

Practical invoicing checklist (for clients and AP teams)

Confirm province(s) of risk and premium allocation per province.
Apply insured‑level provincial tax where applicable: ON 8% RST; SK 6% PST; MB 7% RST; NL 15% RST. No insured‑level tax in BC, AB, NB, NS, PEI.
Verify whether any separately charged administrative fee is taxable for GST/HST purposes; do not apply GST/HST to the insurance premium itself.
If the policy involves an unlicensed insurer or cross‑border placement, assess self‑assessment obligations (e.g., BC 7% unlicensed IPT; federal 10% excise on non‑resident premiums).

Change log and effective date

Rates and interpretations confirmed from provincial sources as of November 6, 2025. Provinces may update tax bulletins and exemptions; confirm current rules before invoicing or remittance.