Some transitional rules for HST
Last week, the Ontario government released transitional rules for HST, so businesses can start planning for the impending merger of GST and RST/PST. Remember businesses that collect HST also claim the 13% of HST ITC.
Special allowances for:
- Taxes & death: If you prepay funeral services before July 1, 2010, the HST would not apply.
- Knowledge & wisdom: Subscriptions to newspapers, magazines and other periodical publications will be exempted from the additional 8% too.
- Leisure & Recreation: Round trips that commerce before July 1, 2010 will also escape the RST portion.
- Property & wealth: A rebate will be available for RST embedded in construction materials purchased before July 1, 2010, but used in residential property on or after July 1, 2010.
General information and guidelines:
- If you purchase something before May 1, 2010, but take delivery after July 1, 2010, you do not pay HST.
- Overall, the HST would apply to goods and services purchased on or after July 1, 2010.
- Beware of the application of HST for prepayments made before May 1, 2010 relating to goods or services provided on or after July 1, 2010. This measure is supposed to create a level playing field for consumers and provide clarity for businesses as they transition to the HST.
For further information, please go to the Ontario Ministry of Revenue website:
- Details providing which tax would apply for transactions that straddle July 1, 2010 from the current Retail Sales Tax or the Ontario portion of the HST.
- Clarification on how the PST or RST will wind down.
- Other special transitional rules that apply.
It can be found at http://www.rev.gov.on.ca/en/