Harmonization of the Sales Tax in Ontario and British Columbia (03/02/2010)
The Government of Canada and the provinces of Ontario and British Columbia have signed Memoranda of Agreement that provide the framework for introducing the Harmonized Sales Tax (HST) in Ontario and B.C. The HST is proposed to come into effect in these provinces on July 1, 2010, at a rate of 13% in Ontario and 12% in B.C. The HST will use the same tax base and structure as the GST, with some exceptions. Please note that the draft legislation to implement the HST in Ontario and B.C. has not yet been passed.
What this means for you
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The proposed HST rates, including the provincial and federal portions, would be:
Breakdown B.C. Ontario Provincial portion 7% 8% Federal portion (GSD) 5% 5% Combined HST rate 12% 13% - All Ontario and B.C. registrants would need to update their accounting and point-of-sale systems to accommodate the change in rate and new point-of-sale rebates for the implementation date of July 1, 2010.
- The harmonization of the sales tax in Ontario and B.C. may affect the filing requirements of registrants outside of these two provinces.
- Registrants will report their HST according to their current GST filing frequency.
- As a result of harmonization, there will be changes to the rebates for housing and public service bodies.
More information will be released as it becomes available. Visit the CRA Web site often, at www.cra.gc.ca/harmonization, for the most up-to-date information on the harmonization of the sales tax and how it may affect you.
To subscribe to the electronic mailing list to receive the quarterly publication, Excise and GST/HST News, go to www.cra.gc.ca/lists.
Did you know that you can simplify your GST/HST filing obligations by using the CRA's electronic filing options? For more information, go to www.cra.gc.ca/gsthst-filing.
To learn more about electronic services available to you in the CRA's My Business Account, including viewing account balances and transfer payment options, go to www.cra.gc.ca/mybusinessaccount.