|
The
provinces of Ontario and British Columbia
have agreed to implement the harmonized
sales tax (HST), which would replace existing
provincial sales taxes and the federal
goods and services tax in those provinces
beginning July 1, 2010 and would be administered
by the Canada Revenue Agency. Legislation
to enact the HST has been passed into
law by the Governments of Canada and Ontario.
Legislation
to enact the harmonized sales tax (HST)
has been passed by the Government of Canada
and is expected to be introduced soon
in the province of British Columbia. The
HST would be applied on most supplies
of goods and services made in British
Columbia at a rate of 12%, consisting
of the 5% federal portion and a 7% provincial
portion.
Businesses
in British Columbia that are registered
for the GST would be required to collect
the HST and would 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.
The
Canada Revenue Agency (CRA) announced
on March 9, 2010 the signing of a Human
Resources Agreement with British Columbia.
This represents a significant step in
the move toward federal administration
of the harmonized sales tax (HST) in this
province. In accepting the task of administering
the HST, the federal government has agreed
that a number of provincial employees
currently administering sales taxes in
British Columbia will transition to the
CRA.
The
CRA recognizes the valuable skills and
expertise that these employees will bring.
Together with the expertise of existing
CRA staff, they will help the CRA meet
its enhanced business needs.
The
Canada Revenue Agency has announced proposed
changes to electronic filing requirements
for goods and services tax/harmonized
sales tax (GST/HST) registrants beginning
July 1, 2010. For more information, see
New
GST/HST Reporting Requirements.
To
provide clarity for businesses, transitional
rules are required to determine which
tax - the existing provincial retail sales
tax or the provincial part of the HST
- would apply to transactions that straddle
the implementation date. For more information,
see Transitional
rules for personal property and services.
Forms
and publications
B-103,
Harmonized Sales Tax - Place of supply
rules for determining whether a supply
is made in a province
NOTICE246
Harmonized Sales Tax for British Columbia
- Questions and Answers on Housing Rebates
and Transitional Rules for Housing and
Other Real Property Situated in British
Columbia
NOTICE247
Harmonized Sales Tax for Ontario and British
Columbia - Questions and Answers on General
Transitional Rules for Personal Property
and Services
NOTICE249
Questions and Answers on the New Reporting
Requirements for GST/HST Registrants
|
