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New HST for Ontario & British Columbia, Effective July 1, 2010

New HST for Ontario & British Columbia, Effective July 1, 2010

The provinces of Ontario and British Columbia have each enacted legislation to implement the harmonized sales tax (HST), which will come into effect beginning July 1, 2010 and will be administered by the Canada Revenue Agency.

The 13% HST comes into effect on July 1, 2010 in Ontario. The Provincial Sales Tax (PST) will be replaced with a more modern, value-added tax that will be combined with the federal Goods and Services Tax (GST) to create a Harmonized Sales Tax (HST) for Ontario, effective July 1, 2010. 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.

The 12% HST comes into effect on July 1, 2010 in British Columbia. The HST will 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.