Just a reminder that HST deadline is fast approaching. It is definitely not a joyful occasion since we would all have to pay more taxes. At least you have an opportunity to make some savings before the deadline, which is July 1, 2010. For that, you will need to examine the table to come up with your shopping list. The extra taxes should help pay for the G20 Summit.
HST Changes
| GST-taxable before July 1,2010 | PST-taxable before July 1,2010 | Is there a change to the amount of tax payable under the HST? | ||
|---|---|---|---|---|
| Clothing and Footwear | ||||
| Children Footwear | 5% | No PST if $30 or less | No for footwear up to size 6 (remains 5%) | |
| Dry Cleaning Service | 5% | No PST | Yes (changes to 13%) | |
| Food and Beverages | ||||
| Alcoholic Beverages | 5% | 10-12% | HST 13%[1] | |
| Home Services | ||||
| Home Service Calls by Electrician/Plumber/Carpenter to Maintain or Repair Furnace, Leaky Faucets, Bathtub, Toilet, Electrical Wiring, etc. | 5% | No PST | Yes (changes to 13%) | |
| Landscaping, Lawn-Care and Private Snow Removal | 5% | No PST | Yes (changes to 13%) | |
| Accommodation, Travel and Passenger Transportation Services | ||||
| Air travel originating in Ontario and terminating in the U.S.[2] | 5% | No PST | No (remains 5%) | |
| Air travel originating in Ontario and terminating outside of Canada and the U.S.[3] | No GST | No PST | No HST | |
| Hotel Rooms | 5% | 5% | Yes (changes to 13%) | |
| Taxis | 5% | No PST | Yes (changes to 13%) | |
| Campsites | 5% | No PST | Yes (changes to 13%) | |
| Domestic Air, Rail and Bus Travel originating in Ontario | 5% | No PST | Yes (changes to 13%) | |
| Around the House | ||||
| Magazines Purchased by Subscription | 5% | No PST | Yes (changes to 13%) | |
| Home Renovations | 5% | No PST | Yes (changes to 13%) | |
| Motorized Vehicles | ||||
| Private Resale of Car (including Registration) | No GST | 8% | Yes[4] (changes to 13%) | |
| Gasoline/Diesel | 5% | No PST | Yes (changes to 13%) | |
| Home Purchases | ||||
| New Homes up to $400,000 | 5% | No PST | No change[5] | |
| New Homes over $400,000 | 5% | No PST | Yes[5A] | |
| Real Estate Commissions | 5% | No PST | Yes (changes to 13%) | |
| Health Products and Services | ||||
| Audiologist Services | No GST | No PST | No HST if offered by a practitioner of the service. | |
| Chiropractor Services | No GST | No PST | No HST if offered by a practitioner of the service. | |
| Physiotherapist Services | No GST | No PST | No HST if offered by a practitioner of the service. | |
| Massage Therapy Services | 5% | No PST | Yes (changes to 13%) | |
| Vitamins | 5% | No PST | Yes (changes to 13%) | |
| Memberships, Entertainment and Sports Equipment | ||||
| Admissions to Professional Sporting Events | 5% | 10% | Combined rate going down to 13% from current 15% | |
| Movie Tickets | 5% | 10% | Combined rate going down to 13% from current 15% | |
| Green Fees for Golf | 5% | No PST | Yes (changes to 13%) | |
| Gym and Athletic Membership Fees | 5% | No PST | Yes (changes to 13%) | |
| Ballet, Karate, Trampoline, Hockey, Soccer Lessons, etc. | 5% | No PST | Yes[6] (changes to 13%) | |
| Tickets for Live Theatre with Less Than 3,200 Seats | 5% | No PST | Yes[7] (changes to 13%) | |
| Leases and Rentals | ||||
| Hockey Rink and Hall Rental Fees | 5% | No PST | Yes (changes to 13%) | |
| Professional and Personal Services | ||||
| Fitness Trainer | 5% | No PST | Yes (changes to 13%) | |
| Hair Stylist/Barber | 5% | No PST | Yes (changes to 13%) | |
| Esthetician Services (e.g. Manicures, Pedicures, Facials) | 5% | No PST | Yes (changes to 13%) | |
| Funeral Services | 5% | No PST | Yes (changes to 13%) | |
| Legal Fees | 5% | No PST | Yes (changes to 13%) | |
| Tobacco | ||||
| Cigarettes and Other Tobacco Purchases | 5% | No PST | Yes (changes to 13%) | |
| Nicotine Replacement Products | 5% | No PST | Yes (changes to 13%) | |
| Ontario Government Services | ||||
| Hunting and Fishing Licences | 5% | No PST | Yes (changes to 13%) |
[1] Although sales tax on alcohol is decreasing, other alcohol fees and taxes are changing to continue to support social responsibility.
[2] Includes air travel terminating in the French islands of St. Pierre and Miquelon but does not include air travel terminating in Hawaii.
[3] Includes air travel terminating in Hawaii but does not include air travel terminating in the French islands of St. Pierre and Miquelon.
[4] HST does not apply; however, Ontario will maintain the PST on private transfers of used vehicles at a rate of 13 per cent to help ensure a level playing field between sales by dealerships and private sales.
[5] The new housing rebate will be 75 per cent of the Ontario component of the HST, up to a maximum of $24,000. The rebate will ensure that buyers of homes priced up to $400,000 will, on average, pay no more tax than under the PST system. However, applicable PST on building supplies is embedded in the price of the home.
[5A] New homes purchased as primary residences, valued at $400,000 or more will be eligible for the maximum new housing rebate of $24,000.
[6] HST-taxable, although some could be HST-exempt if provided by a public service body to children age 14 and under and underprivileged individuals with a disability.
[7] HST-taxable, although some could be exempt if maximum admission charged by a public service body is $1 or less, if the admissions are made in the course of the fund-raising events where charitable receipts for income tax purposes may be issued, or admissions are to amateur performances.
[8] Residential condo fees charged to residents are exempt; however, purchases by condominium corporations will be subject to HST, if applicable.
For more information, you can also contact the Canada Revenue Agency (CRA). Visit the CRA website at cra.gc.ca/harmonization.
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