What is HST
As of July 1, 2010, Ontario harmonized its retail sales tax with the GST to implement the HST at the rate of 13% and British Columbia harmonizedW its provincial sales tax with the GST to implement the HST at the rate of 12%. Also, as of July 1, 2010, Nova Scotia increased its HST rate from 13% to 15%. HST refers to Harmonized Sales Tax. In certain provinces of Canada like Newfoundland and Labrador, New Brunswick, and Nova Scotia the Harmonized Sales Tax (HST) merge the Goods and Services Tax with Provincial Sales Tax to form a singular sales tax. The earliest attempt to create a Harmonized Sales Tax took place in Saskatchewan almost immediately after the Goods and Services tax was introduced in the year 1991. This was mainly done to make collection of tax more easy and convenient for merchants. However, the attempt at harmonization did not prove to be that popular. Thus the HST was seen as some kind of tax grab. The government made a promise for reversing the harmonization. In … [Read More...]
What’s Taxable Under the HST and What’s Not?
Most items have no new tax Most of the goods and services we buy every day have no new tax. That's because there are many items on which we already paid the previous Ontario provincial sales tax (PST) and the federal goods and services tax (GST) before the new harmonized sales tax (HST) came into effect on July 1, 2010. For many things, such as cable and phone services, new cars and adult clothing, there hasn't been a change. However, since July 1, 2010, instead of paying 13 per cent sales tax to two governments (eight per cent to Ontario and five per cent to the federal government), there is one sales tax – still 13 per cent – collected by the federal government. No PST before July 1, 2010, no HST now There are some other items that have never been subject to sales tax, such as basic groceries, municipal transit and prescription drugs. No HST is charged on these items. Point-of-sale rebate Other products are eligible for a point-of-sale rebate for the Ontario part … [Read More...]