Be Prepared for the HST

The Canada Revenue Agency is taking steps to ensure your members are aware of the harmonized sales tax in Ontario July 1, 2010. For example, we recently included an information piece in packages that were sent to GST registrants. The insert provided general information related to harmonization and informed them of where to find additional information.

The CRA has developed dedicated Web pages to provide information on the transition to HST which can be found at www.cra.gc.ca/harmonization. These pages contain the most current information relating to the transition to HST for Ontario, and they are updated regularly as information is released. The Web pages also include a listing of free information seminars being conducted throughout the province, with details about dates, times, locations and how to register. The seminars are entitled "The Proposed Transition to Harmonized Sales Tax - Information for Businesses." Visit the Web site often as new locations are posted frequently at (http://www.cra-arc.gc.ca/vnts/hrmnztn/menu-eng.html).

Another source of information is the Ontario Ministry of Revenue’s Web site which offers a number of resources, tax tips and information on the wind down of the RST. To find out more or sign up for its e-mail alerts, visit ontario.ca/taxchange.

More Updates:

Getting Ready for the Harmonized Sales Tax (HST)

Starting July 1, 2010, Ontario is harmonizing its provincial sales tax with the federal sales tax. The current retail sales tax (RST) will be replaced with a more modern, value-added tax that will be combined with the federal goods and services tax to create a harmonized sales tax (HST).

From www.ontario.ca/taxchange Benefits for Ontario Businesses:

Increased Competitiveness = Greater Investment, More Jobs

Cuts to Business Taxes

Reduced Business Costs

Lower Compliance Costs

Important dates:

March 31, 2010 – RST Vendor compensation ends
May 1, 2010 – For transactions on or after this date, suppliers may be required to collect HST under transitional rules
July 1, 2010 – HST comes into effect
July 23, 2010 – Final RST return due
November 23, 2010 – Final supplemental RST return due

What do businesses have to do right now to get ready?

To help your business prepare for the HST, general transitional rules for the HST are available. Transitional rules have also been released for new housing. Information on temporarily restricted input tax credits is also available for large businesses and certain financial institutions.

E-Alerts

To receive regular updates about the HST sign-up for the Ministry of Revenue e-alerts service at http://www.rev.gov.on.ca/en/alerts.html.

Select harmonized sales tax under the Taxes and Charges section.

More Information

To learn more about what you need to do to get ready for the HST visit www.ontario.ca/taxchange. You can also call 1 800 337-7222, teletypewriter (TTY): 1 800 263-7776. Canada Revenue is your source for the latest information on how the transitional rules apply and how to get ready for the HST. Visit the CRA's "Are You HST Ready" Website at www.cra.gc.ca/harmonization or call 1 800 959-5525.

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Be Prepared for the HST