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| Harmonized Sales Tax
HST is Coming to BC and Ontario in July 2010
Effective July 1, 2010, Ontario PST and B.C. PST will be changed to a Federal Harmonized Sales Tax (HST).
Check out this Masthead article on what it means for magazines.
Here is how it will impact upon magazines:
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Current
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1-Jul-10
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ONT
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Subscription
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Newsstand
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Subscription
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Newsstand
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GST
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5%
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5%
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PST
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0%
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8%
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HST
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13%
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13%
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Total
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5%
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13%
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BC |
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GST
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5%
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5%
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PST
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0%
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0%
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HST
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12%
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12%
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Total
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5%
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5%
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The harmonization of the sales tax will affect all companies' operations (billing systems, issuance of invoices and purchase orders, accounting systems, payments to suppliers, reimbursements of employees’ expenses and tax reporting requirements).
Ensure that the harmonization tax be in place for the following areas:
- All subscription offers (including web orders)
- All external agencies' orders
- Customer Service Department to handle inquiries
- Cost savings in payments of supplier invoices (ON HST and BC HST will be fully refundable while currently the PST is included in expenses)
- Subscribers will have to pay more for their subscriptions (see above chart) in both provinces
- In BC, the cost to purchase newsstand copies will also be higher as newsstand copies sold in BC are currently exempted for PST
Please keep in mind that July 1, 2010 is the official date that the new HST will be in place. However, there will be specific rules to be followed to ensure compliance with respect to agreements entered before July 1, 2010 pertaining to services/goods (full or portion) sold or performed after June 30, 2010.
Ontario issued HST transitional rules in October.
Last Update: Friday, April 30, 2010 |
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