Monday, June 21, 2010

HST and You: Understanding the Harmonized Sales Tax

In his special report for Masthead "The HST in Ontario and British Columbia: What it means for magazines," David Perri answers the questions that will likely arise with the implementation of the harmonized sales tax (HST) in Ontario and British Columbia on July 1, 2010. Included below are a few highlights from these useful FAQs:

What is the HST?
The HST will replace the government sales tax (GST) and provincial sales tax (PST) in both Ontario and British Columbia on July 1, 2010. Previously, the two taxes were administered separately by the federal and provincial governments. After July 1, the taxes will be blended and the Canada Revenue Agency will administer the HST for both provinces, along with Nova Scotia, New Brunswick and Newfoundland and Labrador, which have already implemented the combined tax. Québec also has a blended sales tax, but it is administered by Revenu Québec.

How will the HST affect magazines’ newsstand prices in Ontario and B.C.?
In Ontario there will be no price change for single-copy magazine sales, which are already taxed by both the GST and PST. However, magazines on B.C. newsstands have a PST exemption, but will be hit with the full HST after July 1, adding seven percent to their price for consumers.

How will the HST affect magazine subscription prices in Ontario and B.C.?
Magazine subscriptions are currently exempt from PST in both provinces. However, starting July 1 the HST will be applied to subscriptions, raising their cost by eight percent in Ontario and seven percent in B.C.

Learn more about HST online