HST Checklist


Is your business ready for the HST?  This new tax replaces provincial and federal sales taxes and takes effect on July 1, 2010 in Ontario and British Columbia. 

How the HST affects your customers:

Current sales taxes Harmonized Sales Tax (July 1, 2010)
ONTARIO

Restaurant meals are subject to the 5% GST plus 8% PST. 

Restaurant transactions $4.00 and under are exempt from the 8% PST.

Beer, wine or spirits purchased from a licensee are taxed at 5% GST and 10% provincial LST.

The GST and PST are replaced by the 13% Harmonized Sales Tax (HST). 

Restaurant transactions $4.00 and under are exempt from the provincial portion of the HST and taxed at 5%.

Beer, wine or spirits purchased from a licensee are taxed at 13% (HST).

BRITISH COLUMBIA

Restaurant meals are subject to the 5% GST, but they are exempt from the 7% PST.

Beer, wine or spirits purchased from a licensee are taxed at 5% GST and 10% provincial LST.

The GST and PST are replaced by the 12% Harmonized Sales Tax (HST).  The HST will apply to all restaurant meals.

Beer, wine or spirits purchased from a licensee are taxed at 12% (HST).

 

Transition issues:

The transitional rules for BC and Ontario were published by the Canada Revenue Agency (CRA) on Oct. 14, 2009.  You must be a registered business with the CRA by May 1, 2010 to be eligible for small business transition funding.  Cheques will be issued automatically based on 2009 sales volumes. 

As of May 1, 2010, HST applies on the consideration for certain property and services provided by business on or after July 1, 2010.  Service contracts must have been signed before May 1 to avoid paying the HST. 

As of May 1, if you are booking events or services to be provided at a future date, ensure your pricing reflects the liquor and tax price changes that take effect July 1, 2010.

 

HST Checklist:

 

Tools for Ontario

CRFA has put together tools to help you assess how the HST will affect your business and menu prices.

News: Ontario licensees saved from $24 million in extra costs
CRFA calculators: Wine   Beer   Spirits
Ministry of Finance: Charts showing tax savings (PDF)
Embedded tax savings list (PDF)
Canada Revenue Agency: POS rebate for meals $4 and under (PDF)  
Ontario Ministry of Revenue: Tax tips on POS rebate for meals $4 and under (PDF)
Beer taxes calculator
Government of Ontario: HST impact on goods and services used by restaurants (PDF)
ServiceOntario: Ordering the beer tax card

 

Resources for B.C.

Liquor Distribution Branch:  Beverage alcohol pricing implications for HST (PDF)

Liquor Distribution Branch calculators: Wine   Beer   Spirits

Click here for further details on the HST in British Columbia.

 

Need more information?

Click here to visit the Canada Revenue Agency’s website or call 1-800-959-5525 (toll-free) for more information on the HST in Ontario and B.C.