Canadian harmonized sales tax


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Certain Canadian provinces use the Harmonized Sales Tax (HST), which is a combination of the Goods and Services Tax (GST) and Provincial Sales Tax (PST), and which is paid to vendors when products are purchased. Certain portions of the HST can be recovered by public sector entities after having paid them to vendors, depending on what the purpose of the purchase is. The purpose of the purchase is designated by the financial dimension values and main account on the transaction document line (for example, purchase requisitions, purchase orders, or vendor invoices).