Saskatchewan Sales Tax for Contractors: 6% PST & 5% GST Guide (PST-12)

Short answer: Saskatchewan sales tax for contractors is 6% provincial PST plus 5% federal GST (11% combined on the pre-tax subtotal). Unlike British Columbia or Manitoba, Saskatchewan Information Bulletin PST-12 treats construction, repair, renovation, and real property services as taxable services: you must register for a PST vendor’s licence, collect 6% PST on the total contract charge (both labour and materials), show PST on a separate invoice line, and quote your vendor’s licence number to buy incorporated contract materials PST-exempt.

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That is the opposite of what many contractors expect, because in most PST provinces the contractor pays the tax on materials and never charges it on labour. The current rules are in the province’s Information Bulletin PST-12, Services to Real Property (revised July 2024). Other provinces’ rates are in GST, HST and PST rates by province, and the federal side is in how to register for GST/HST.

What is the sales tax rate for contractors in Saskatchewan?

6% PST and 5% GST, charged separately, each on the pre-tax price.

Tax	Rate	Administered by	Applies to contractor labour?
GST	5%	Canada Revenue Agency	Yes, once you are registered
PST	6%	Saskatchewan Ministry of Finance, Revenue Division	Yes, on services to real property

The Government of Saskatchewan describes PST as a six per cent tax on taxable goods and services consumed or used in the province. PST is calculated on the price before GST, and GST is not charged on the PST: a $1,000 taxable job is $1,000 + $60 PST + $50 GST = $1,110.

Is labour taxable in Saskatchewan?

Yes, for services to real property. PST-12 lists taxable services to real property as construction, alteration, repair, erection, demolition, remodelling or improvement of real property or a building or structure on it, or any other service in relation to real property. The contractor must collect PST on the total charge for the service, including labour, materials, transportation, insurance, permits, service fees and any tax, levy or duty other than the GST.

In practice that covers most trade work on a building: framing, roofing, plumbing, electrical, HVAC, painting, flooring, windows and doors, fences and decks. Goods count as real property when they are permanently attached, for example sunk into, cemented into, bolted to, built or framed into, plumbed or wired into the land or building. The bulletin’s own examples include windows, doors, light fixtures, furnaces, central air conditioners, railings, underground sprinklers, fences and plumbing materials.

Worked example. A bathroom renovation in Regina priced at $8,000, with $2,500 of that being materials. The invoice shows $8,000, PST at 6% on the whole $8,000 ($480), and GST at 5% on $8,000 ($400), for $8,880 in total. You bought the tile, fixtures and drywall exempt by quoting your vendor’s licence number, so there is no PST buried in your material cost.

Charge	Amount
Labour and materials	$8,000.00
PST (6%)	$480.00
GST (5%)	$400.00
Total	$8,880.00

Which services to real property are exempt from PST?

PST-12 lists services that are exempt when they are provided separately and not billed as part of a taxable service to real property. They include:

• snow clearing and snow removal;
• lawn and yard care such as mowing, aeration, thatching and fertilizer application (irrigation installation and repair stay taxable);
• tree and shrub trimming and pruning (planting, tree removal and stump grinding stay taxable);
• pest control;
• septic tank pumping and routine grease-trap cleaning (unclogging or repairing drains stays taxable);
• debris and garbage removal that does not alter the land and is not part of landscaping or demolition.

For these exempt services you do not collect PST, but you pay PST on the equipment, materials and consumables you use to provide them. Check the full list in the bulletin before relying on an exemption, because several come with conditions or start dates.

What do contractors pay PST on themselves?

Your own equipment and consumables. PST-12 says contractors must not use a vendor’s licence number to buy goods for their own use, and lists examples: equipment and hand tools, blades and drill bits, sandpaper and abrasives, brushes, rollers and tape, extension cords, gloves, safety glasses and coveralls, tarps and blankets. Rented and leased equipment is taxable too. If a supplier did not charge PST on those items, you self-assess it on your PST return.

What you can buy exempt are contract materials: materials resold as part of the contract, nails, screws and fasteners, and lumber or plywood used on site for bracing or forms on a particular job. If you paid PST on materials that end up in a job where you collect PST, the bulletin allows a credit, subject to audit.

Do Saskatchewan contractors have to register for PST?

Yes. PST-12 says businesses providing services to real property must be registered with the Revenue Division as licensed vendors to collect and remit PST, and must also report tax on equipment, supplies and services bought for their own use. Contractors not already registered apply for a vendor’s licence. There is no small-business threshold in the bulletin that removes this requirement for contractors. Registration, filing frequencies and due dates are covered in Information Bulletin PST-5.

On long jobs with progress billing, PST is collectible on each progress payment on the earlier of the day it is paid or the day it becomes due, and on holdbacks on the earlier of the day the holdback is paid or the day the holdback period expires. That mirrors how GST works on progress payments.

When do you have to register for GST?

The federal rule is the same in every province: once your taxable revenue passes $30,000 in a single calendar quarter or over four consecutive calendar quarters, you must register and charge GST. Below that, registration is voluntary. The $30,000 is measured on revenue, not profit. Unlike PST, GST you pay on business inputs can be claimed back as input tax credits once you are registered. The CRA lists current rates on its GST/HST calculator and rates page, and how to calculate GST/HST has the formulas.

How should a Saskatchewan contractor’s invoice look?

Show your price, a PST line at 6%, a GST line at 5% if you are registered, your GST/HST number and your PST vendor’s licence number. PST-12 requires PST to be shown as a separate line item. If part of the job is an exempt service billed separately, put it on its own line without PST so the treatment is clear. The general layout is in the Canadian invoice template.

What records support your PST position?

Two sets. On the sales side, your invoices show PST collected on each job. On the purchase side, your receipts show which materials you bought exempt for a specific contract and which tools and consumables you paid PST on. An auditor checking exempt purchases will want to match materials to jobs. Self-employed expenses and receipts covers what a usable receipt shows and the CRA’s six-year rule.

…and where does Keel fit?

Keel: Invoice Generator, an app by Ilura Technology OÜ, keeps invoices, receipts and expenses together under the job they belong to. It is a record keeper, not a compliance tool: it does not register you for PST or GST, file returns, or connect to the CRA or the Saskatchewan Revenue Division.

There is no bank connection. Invoices can carry a payment-link QR code. Free to download on the App Store. Keel: Invoice Generator on the App Store.

Frequently asked questions

What is the sales tax in Saskatchewan for contractors?

6% PST plus 5% GST, charged as two separate taxes on the pre-tax price. Saskatchewan treats construction, repair and renovation of real property as taxable services, so contractors collect 6% PST on the total charge, labour and materials included, and 5% GST once registered. A $1,000 job becomes $1,110.

Do contractors charge PST on labour in Saskatchewan?

Yes. Under Information Bulletin PST-12, services to real property, including construction, alteration, repair, remodelling and demolition, are taxable in Saskatchewan. The contractor collects PST on the total charge, which includes labour, materials, transportation, permits and fees other than GST, and shows the PST on a separate line of the invoice.

Do I pay PST on materials as a Saskatchewan contractor?

Not on materials you incorporate into a job where you collect PST. You can buy them exempt by quoting your vendor’s licence number. You do pay PST on your own tools, equipment, rentals and consumables such as blades, sandpaper, tape, gloves and tarps, and you self-assess it if a supplier did not charge it.

Do I need a PST licence as a contractor in Saskatchewan?

Yes. Information Bulletin PST-12 says businesses providing services to real property must register with the Revenue Division as licensed vendors to collect and remit PST. The bulletin sets no small-business threshold that exempts contractors from this. Confirm your registration and filing details with the Saskatchewan Ministry of Finance.

Which contractor services are exempt from PST in Saskatchewan?

When billed separately from taxable work, the exempt list includes snow removal, lawn and yard care, tree trimming and pruning, pest control, septic pumping, routine grease-trap cleaning and some debris removal. Irrigation work, tree removal, stump grinding and drain repairs stay taxable. You still pay PST on the materials and equipment used for exempt services.

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This article is general information, not legal or tax advice. Rules change — confirm with the authority named above.