GST Rate Reduction

As previously announced on October 30, 2007 a reduction has been proposed to change the rate from 6% to 5%. The proposed effectivity date of the change is January 1, 2008.

The CRA has since issued a GST/HST Notice to its website which includes a set of questions and answers about the proposed reduction to the GST rate. The CRA will be implementing a similar approach for this reduction as with the reduction of the GST which occured in 2006.