As of September 20, 2010, Wikipedia states that Canada’s Goods and Services Tax “is a multi-level value added tax introduced in Canada on January 1, 1991.”
A sales tax is “a tax levied on the sale of goods and services that is usually calculated as a percentage of the purchase price and collected by the seller.”
A value added tax is “an incremental excise that is levied on the value added at each stage of the processing of a raw material or the production and distribution of a commodity and that typically has the impact of a sales tax on the ultimate consumer.”
From the Canada Revenue Agency’s “How GST/HST works,” no mention is made of it being a value added tax.
Confusion may arise, however, with businesses having to pay the GST/HST on most of their purchases. However, it states:
“They can claim an input tax credit, to recover the GST/HST paid or payable on the purchases they use in their commercial activities.”
Even without the rebate, it still wouldn’t be a value added tax, since the full tax is applied, not an incremental amount.