Tom Sweeney

It's a coming of age tale….

HST and You….

Posted by sweens on May 19, 2010


Starting July 1st, 2010, the federal GST in Ontario and British Columbia will be combined with the PST to be a value added harmonized tax (HST). Under the new HST, most goods and services will be subject to 13% tax in Ontario and 12% tax in British Columbia.

What does this mean?

Where the service is being provided in a non-harmonized province or a province which is already harmonized (i.e. NS, NB and NFLD), there will be no impact to your current process.

In order to ensure that the correct tax rate is used, please use the following as a guideline:

If the goods/services are supplied before July 1st and the service is being provided in ON or BC:

  • Please be sure to submit all hours and appropriate authorized paperwork (if applicable) worked up to June 30, by July 5
  • Please submit all expenses reports incurred for June or prior by July 5. Do not include any receipts post June 30th.

If the goods/services are supplied on or after July 1st and the service is being provided in ON or BC:

  • Your invoice date should be no earlier than July 1st
  • the “GST or HST Amount” on any invoice submitted should reflect 13% HST for ON or 12% HST for BC

What do I need to do?

Businesses that are registered for the GST would automatically be registered for the HST and, as a result, would continue to use their current GST/HST account number for HST. There would be no need to provide any new documentation for your current contract with Procom.

For full details and more information please click on the following:

http://www.cra-arc.gc.ca/gncy/hrmnztn/menu-eng.html

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