What You Need To Know About HST (Harmonized Sales Tax)
As most of us are aware, the provinces of British Columbia and Ontario will be implementing Harmonized Sales Tax on July 1, 2010. This NEW TAX will combine the current PST and GST into one tax, and some items that were previously taxed with only GST will now be taxed with HST.
The government is careful to note that of all taxable goods, only 17% will see an increase in price while the other 83% maintain the same status. However, there are quite a few changes that the average consumer will want to be aware of!
Here's a list of products and services that will see a bump from 5% tax (GST alone) to 12% or 13% tax (HST) after July 1, 2010.
| Home & Garden | Travel & Entertainment |
|---|
|
- Utilities (heating/hydro/electricity/natural gas; in BC there will be provincial rebates for residential energy costs)
- Internet service
- Landscaping
- Dry Cleaning
- Carpet Cleaning
- Christmas Trees
- Electrical and Plumbing services
- Snowplowing
- Bicycles
- Labour costs related to home renovation
- Motor vehicle services (towing, car washing)
- New homes over $400,000
- Commercial property rentals and leases (but not rent payments)
| - Golf green fees and ski resort lift tickets
- Most admissions to live theatres
- Taxi fares
- Conferences and seminars
- Hotels
- Overnight summer camps
- Domestic air travel, domestic rail travel, bus tickets (municipal public transportation is exempt)
- Admission fees under $4 (swimming pool, skating rink, etc), admission to live theatre performances
|
| Gas & Grocery | Services |
|---|
|
- Gasoline (Ontario only)
- Tobacco
- Vitamins
- Postal stamps and courier fees
| - Veterinary care
- Personal services (hair stylist, massage, cosmetology, etc)
- Professional services (lawyers, accountants, web page design, etc)
- Mutual fund management fees
- Membership fees (gyms, clubs, etc)
- Real estate commissions
- Funeral costs
- Doctor fees not covered by OHIP; Dentist fees
- Advertising in newspapers, magazines and other media
|
THE HST PDF LINK BELOW PROVIDES ADDITIONAL PERSPECTIVES ON CHANGES YOU SHOULD BE AWARE OF.
