Getting Ready For The Harmonized Sales Tax(HST)

The Government of Canada is committed to developing partnership agreements with the provinces to improve the competitiveness of their tax systems and deliver services on behalf of its federal, provincial, and territorial partners.

If legislation passes as proposed, the Canada Revenue Agency would be responsible for the administration of the harmonized sales tax (HST) in Ontario and British Columbia. The HST would replace existing provincial sales taxes and the Goods and Services Tax in those provinces beginning July 1, 2010.

In broad terms, the existing Ontario Retail Sales Tax (RST) will generally cease to apply and HST will begin to apply to:

  • Sales of goods where the goods are delivered, and ownership is transferred, on or after July 1, 2010;
  • Sales of services to the extent the services are performed on or after July 1, 2010;
  • Supplies of property by lease, licence or similar arrangement for the part of the lease interval on or after July 1, 2010;
  • Goods brought into Ontario or imported by a resident of Ontario on or after July 1, 2010; and
  • Sales of admissions, including season tickets, for entry to a place of amusement on or after July 1, 2010.

Transitional rules will apply to amounts that are paid or payable before July 1, 2010 for property or services that are delivered, performed or made available on or after July 1, 2010.

For more information on the transitional rules for the HST please visit Canada Revenue Agency

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