Harmonized Sales Tax HST

W

whatiship

Well-Known Member
Feb 6, 2008
640
462
63
20
Has anyone recieved a clear answer on how this will effect us? Will it be the same as GST where all international or interline transactions are exempt?
Will it apply when a carrier bills a broker??
In theory fuel will be slightly cheaper since we now pay GST on the PST which is included in the pump price.
Anyone heard anything that we should know about??
For such a big change in our provincial tax system I have heard hardly anything, good or bad about it.
 
Hst-gst

The HST rules applies the same as the GST, it is exactly the same thing.
It is better for companies because you will get all the tax back, for example when you buy a computer for your company, now you only get the 5% back, when the HST comes in you will get the 13% back. If you look at a GST remittance form at the top it says GST/HST remittance form. The best way to remember, is to understand that the PST no longer exists and GST is now 13% and apply is the same way you did the 5%. HST Is the same rules, same everything as the GST 5%.:)
 
The only difference is instead of paying 5% on repairs and parts etc, we'll be paying 13%, and then wait for reimbursement.
 
Hst

Friendly Broker, That is correct you just change the amount to 13% and the same rules apply for remittance as the 5%, you turn the whole 13% in.

It is also true that you will now pay more upfront for parts, but you also will collect more. And you will benefit by being able to claim all your business related expenses and getting the full 13% back instead of only the 5%. IT is good, if you have a business.
 
Last edited by a moderator:
Here is what you need to know:

When invoicing your customer, it is the province in which the consignee is located, not where the shipper is or where the payor resides , that determines the GST or HST applied:

Ex Ontario to:

BC 12% HST July 1, 2010
AB 5% GST
SK 5% GST
MB 5% GST
ON 13% HST July 1, 2010
QC 5% GST
PE 5% GST
NB 13% HST
NS 13% HST
NF 13% HST

Can't help you on IRP issues.
 
IRP and HST

This is an article published last year. The site is
Ontruck.org | Bradley Hails New HST Legislation

David Bradley was talking about the HST, MJVT, etc:

Bradley Hails New HST Legislation
OTA Lobby Effort Creates No Exit Tax Policy As Part of Elimination of MJVT​
(Toronto) – OTA President David Bradley welcomed the introduction in the Ontario Legislature today of legislation enacting the government’s proposed new harmonized tax system. “For the Ontario trucking industry the fact that the government has moved forward on its budget commitment to harmonize the provincial sales tax (PST) with the federal goods and services tax (GST) starting next year is extremely good news”, Bradley said. “OTA has been seeking this announcement for a number of years and it’s been a key recommendation of virtually every OTA pre-budget submission this decade. The introduction of the legislation today is great news for the industry.”

Bradley was particularly pleased to note that according to the Government's background material, as part of the transition to the HST and wind-down of the RST, the Multi-Jurisdictional Tax (MJVT) will also be wound down and that under the transition rules the MJVT would simply no longer apply to renewals or new registrations under the IRP on or after July 1, 2010. In addition, trucks would no longer be subject to RST (exit tax) when they cease to be registered under the IRP on or after July 1, 2010. "OTA has had the opportunity to work closely with the government on the transition rules and we had made the case that the fairest way to wind down the MJVT was to do so without imposing any exit tax on those vehicles already in the MJVT system. We're extremely pleased that the government was receptive to our point of view and that the legislation introduced today eliminates the MJVT without imposing an exit tax", Bradley said. "This is a huge win for the OTA and the trucking industry; it will save fleets with trucks registered in IRP about $2000 per vehicle.”

Bradley explained OTA’s strong support for the HST saying, “For far too long the trucking industry has been living with a business input tax system that is outdated, archaic, uncompetitive, administratively burdensome and discriminatory. In a low margin industry like trucking, taxes on business inputs, which a company must pay whether it is generating a profit or not, are regressive and a drag on investment in newer technologies. Trucking, more than most other industries in Ontario, has had to endure a situation where the more they invest in equipment that is more efficient, more productive, safer and more environmentally-friendly, the more tax they have had to pay.”

Bradley concluded by saying that, “While there is no doubt that any tax change of the magnitude of sales tax harmonization will be difficult, the unavoidable fact is that the status quo is dysfunctional for industries like trucking. With the current economic crisis upon us, we can no longer afford an unfair, inefficient, and regressive sales tax regime. The question therefore becomes not one of should we avoid the challenging task of reforming our sales tax regime out of fear of change, but one of how do we craft a simpler, fairer, harmonized system that applies sales tax in a more appropriate manner that minimizes inequities and opens the way for economic growth based on a fairer tax regime. Simply defending the status quo is no longer an option if we're going to make Ontario more competitive as we move out of the current economic crisis.”

Early in the new year OTA will be hosting webinars with the appropriate government officials regarding transitional rules impacting members and tax filing requirements under the HST post July 1, 2010.

Not sure if this helps...
 
SCAM CHASER said:
When invoicing your customer, it is the province in which the consignee is located, not where the shipper is or where the payor resides , that determines the GST or HST applied:

Ex Ontario to:

BC 12% HST July 1, 2010
AB 5% GST
SK 5% GST
MB 5% GST
ON 13% HST July 1, 2010
QC 5% GST
PE 5% GST
NB 13% HST
NS 13% HST
NF 13% HST

Can't help you on IRP issues.
Click to expand...

So to be clear... If the shipper is in ON... and the load is going to AB then 5% GST is the only tax applied?

And if said 'product' is processed and returned from AB to ON it then becomes subject to 13% HST?
 
I am quite sure, that in the next few days we should be hearing about seminars or meetings organized by the OTA or the NTBA, that willl address the HST issue and how it applies to transportation providers.
 
Oops

I am now led to believe it is where the payor is located. This is so confusing. Rumour has it that the NTBA is having someone from CRA speak at a dinner meeting May 6 - contact info@ntba-brokers.com for details.
 
6 pages gives me a headache

You read that over and you are even more confused.

Did I see an answer to this kind of question?

[1] shipment from Toronto to Vancouver

[2] If freight prepaid, what rate?

[3] If shipment collect, what rate?

[4] If shipment paid by purchaser of goods and located in AB, what rate?

It states that certain non-consumers must self assess the tax purchase amounts on their GST/HST returns and indicate the provincial tax portions. Note it reads "purchases" not sales, so if you bill someone in BC, they have to split the fed/prov portions, not you.

So tell me why anyone who reads this forum shouldn't be making a beeline to the NTBA's e-mail address to reserve a seat for May 6th.
 
You must log in or register to reply here.
Top Bottom