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 Governments of Canada and Ontario. The HST will be applied on most supplies of goods and services made in Ontario at a rate of 13%, consisting of the 5% federal portion and an 8% provincial portion.
Businesses in Ontario 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.
For additional information on Ontario’s sales tax reform, visit the Ontario Ministry of Revenue Web site.
