Starting July 1, 2010, Ontario is harmonizing its provincial sales tax with the federal sales tax. The current retail sales tax (RST) will be replaced with a more modern, value-added tax that will be combined with the federal goods and services tax to create a harmonized sales tax (HST).
The HST is part of a comprehensive tax package to make Ontario’s businesses more competitive and get people back to work. In addition to the HST, the package is delivering tax relief of $4.5 billion to business and $10.6 billion to people over three years.
Here’s where to find important information:
Please share this information with members of your associations, organizations and local businesses.
Benefits for Ontario Businesses:
Increased Competitiveness = Greater Investment, More Jobs
Cuts to Business Taxes
Reduced Business Costs
Lower Compliance Costs
What do businesses have to do right now to get ready?
To help your business prepare for the HST, general transitional rules for the HST are available. Transitional rules have also been released for new housing. Information on temporarily restricted input tax credits is also available for large businesses and certain financial institutions.
To receive regular updates about the HST sign-up for the Ministry of Revenue e-alerts service at http://www.rev.gov.on.ca/en/alerts.html.
Select harmonized sales tax under the Taxes and Charges section.
To learn more about how your business will benefit and what you need to do to get ready for the HST visit www.ontario.ca/taxchange. You can also call 1 800 337-7222, teletypewriter (TTY): 1 800 263-7776.
Canada Revenue is your source for the latest information on how the transitional rules apply and how to get ready for the HST. Visit the CRA's "Are You HST Ready" Website at www.cra.gc.ca/harmonization or call 1 800 959-5525.
Did you know: The current RST adds a $4.5 billion annual burden to businesses in Ontario by generally taxing business purchases at every stage of production. That’s a big competitive disadvantage. Moving to the HST eliminates this burden through input tax credits, generally reimbursing business for the HST they pay on business purchases, resulting in savings that can be passed on to consumers.