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HST On July 1st the Provincial Sales Tax (PST) will be eliminated and the 7% British Columbia PST will be added to the 5% Goods and Services Tax (GST) forming the single Harmonized Sales Tax (HST) at a rate of 12%. The HST will be applied to most supplies and goods and services made in British Columbia. Having only one set of GST/HST rules, and one tax remittance and audit process should reduce the administrative burden for businesses. However, businesses will need to consider the financial, information technology and cash flow implications of the HST. Businesses in British Columbia that are registered for the GST are required to collect the HST and report their HST according to their current GST filing frequency. Retailers and service-providers should begin to upgrade their point-of-sale, cost and accounting systems as early as possible to ensure that they meet the implementation date of July 1, 2010. A reminder to businesses — you must start collecting British Columbia’s new harmonized sales tax (HST) on payments made or invoices issued on or after May 1, 2010 for supplies of goods and services made in British Columbia that will be provided on or after July 1, 2010 (i.e., prepayments). The HST transitional rules specify technical details about paying the HST in the period around July 1, 2010. Overall, the HST will apply to goods and services purchased on or after July 1, 2010. Businesses supplying goods and services across Canada will need to understand the new HST place of supply rules to determine whether the GST or HST applies. Businesses will have to determine whether BC, Ontario, or Atlantic HST, GST or GST and PST/QST will have to be collected. Effective January 4, 2010, changes to the GST/HST reporting requirements were announced. Under the proposed changes, most GST/HST registrants would be required to file their GST/HST returns electronically for all reporting periods that end on or after July 1, 2010. Under proposed changes, a rebate for some of the provincial part of the HST paid for certain newly constructed or substantially renovated housing will be available. In certain circumstances a retail sales tax, or provincial sale tax transitional new housing rebate will be available as well. The government will provide point-of-sale rebates of the provincial part of the HST payable on sales of certains designated items. For more information regarding the Institute's position on the HST, please contact Kerri Brkich, Manager of Public Affairs at 604-488-2625 or brkich@ica.bc.ca. We have gathered some resources available to help members with the implementation and transition to the HST. Institute Links
HST Planning for the Harmonization – PD Course
Ten Things You Need to Know about HST in B.C.:
Preparing for the HST – CICA Webinar Series
Report on Industry – Special Addition: Focus on Harmonized Sales Tax
Institutes efforts to support the implementation of the HST in BC: External LinksBC Government
Includes detailed information on the how the HST works, basic information, application of the HST and assistance with the implementation and transition process. Canada Revenue Agency (CRA)
Useful forms, publications, filing requirements and other HST resources.
New HST/GST reporting requirements.
Place of supply rules.
Point of sales rebates. The CRA is currently conducting seminars across the province to help BC businesses prepare for the transition to the HST. Information about the seminars and webinars can be found online, http://www.cra-arc.gc.ca/vnts/hrmnztn/bc/menu-eng.html and http://www.cra-arc.gc.ca/vnts/hrmnztn/wbmnrs-eng.html |
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