HST in effect July 1, 2010

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Flickr / D Sharon Pruitt

Recognizing that HST comes into effect tomorrow, we’ve turned the blog over to our accountant Neville. Here’s an overview of HST and how it affects you.

Harmonized Sales Tax (HST)

Effective tomorrow, July 1, 2010, through enacted legislature, both the provinces of British Columbia and Ontario will be charging harmonized sales tax (HST)

If your offices are located in British Columbia, a HST rate of 12% will apply to your invoice, or if your offices are located in Ontario a HST rate of 13% will apply to your invoice.

If your business has a GST number, you may now claim the full HST portion as an Input Tax Credit (ITC) (previously only 5% of the GST was allowable as an ITC claim). Filing of the new HST will be made on your existing GST Return.

The following table shows the sales tax rates across Canada as of July 1, 2010.

Province HST Rate GST Rate PST Rate
British Columbia 12% n/a n/a
Ontario 13% n/a n/a
Nova Scotia 15% n/a n/a
New Brunswick 13% n/a n/a
New Foundland and Labrador 13% n/a n/a
Alberta n/a 5% n/a
Saskatchewan n/a 5% 5%
Manitoba n/a 5% 7%
Quebec n/a 5% 7.5%
PEI n/a 5% 10%

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2 Responses to “HST in effect July 1, 2010”

  1. Lisa Says:

    Hey there — my chartered accountant says that BC companies invoicing Ontario clients need to charge them 13%. This is true for all provinces. According to HST laws, because everything is mitigated federally, companies will owe the HST rate charged in their own place of business.

  2. fairwarepromo Says:

    Lisa, We’ll check in with our accountant and see what’s up – thanks for the prompt!

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