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May 10The HST and you.
On July 1, 2010 the Canadian government will implement the Harmonized Sales Tax(how can you use the word harmony with tax) anyway its coming and in fact its already here in some places. In my role as a entrepreneur I have to keep up on my taxes and how it will affect my ventures. I was doing some reading this morning and thought I would post a little something to inform my readers.
The HST is 13%.
One thing I find funny is that there is no tax on junk food under a certain price but gym memberships are taxed…kinda defeating isn’t it, I think it should be the other way around.
What’s Exempt From HST
Consumers will not have to pay HST on items that are currently exempt from PST such as groceries, child care, tutoring, prescription drugs and most financial services.
Nor will consumers have to pay the provincial portion of the HST tax on goods such as books (including audio books), feminine hygiene products, and children’s clothing, including footwear.
For more details visit the Ontario Tax Benefits for Consumers site.
http://www.rev.gov.on.ca/en/taxchange/consumers.html
HST and SMB
The Small Supplier Exception Continues
Ontario is leaving the Small Supplier exception in place, so if you are operating a small business that makes $30,000 or less annually, you are not required to register for or collect Ontario HST. However, you may voluntarily register your small business, enabling you to claim Input Tax Credits.
As a Small Supplier even though you may not do not have a legal obligation to register to collect GST/HST you can still choose to register voluntarily. The incentive here is that because you will be charging GST/HST on your services you will be able to “claim Input Tax Credits (ITC) for the GST/HST you paid or owe on purchases related to your business.