Freight originates in Ontario and is prepaid going to multiple jurisdictions that all have different HST rates. How is something like this charged out ie freight destined for PQ, NB, NS, prepaid from Ontario. Does anyone know what our glorious government regulations would be?
Hst charges on multiple jurisdictions
- Thread starter ctsi
- Start date
30
The rate of HST, or GST for provinces that haven't combined, is determined by where the shipment is finally delivered. In your example,
PQ - 5% GST, NB - 13% HST, NS - 15% HST. Where it originates doesn't matter, prepaid or collect, unless it is from the US when no GST or HST is applicable. Fun eh?
PQ - 5% GST, NB - 13% HST, NS - 15% HST. Where it originates doesn't matter, prepaid or collect, unless it is from the US when no GST or HST is applicable. Fun eh?
30
I do remember this thread, quite a few had great input at the time:
http://www.insidetransport.com/payment-terms-credit-history/6817-hst-loads.html
To answer your question directly - from the seminar I attended including a speaker from CRA (it was an NTBA gathering). For multiple drops on the same truck, I understood the legislation was vague in that you are required to charge (and remit) the tax for the 'portion of the shipment per delivering province'. Of course, how do we allocate this? Mileage, weight, footage, what is the benchmark?
The seminar I attended was several months before the HST came into force, hopefully it's been clarified since!
Keep well,
Mike
http://www.insidetransport.com/payment-terms-credit-history/6817-hst-loads.html
To answer your question directly - from the seminar I attended including a speaker from CRA (it was an NTBA gathering). For multiple drops on the same truck, I understood the legislation was vague in that you are required to charge (and remit) the tax for the 'portion of the shipment per delivering province'. Of course, how do we allocate this? Mileage, weight, footage, what is the benchmark?
The seminar I attended was several months before the HST came into force, hopefully it's been clarified since!
Keep well,
Mike
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2
Wait a second! is each drop collect or prepaid? I would assume that the HST payable would be based on what province the paying party is located in.
See this article:
Businesses that Sell Goods Must Charge HST Based on Delivery : The HST Blog
See this article:
Businesses that Sell Goods Must Charge HST Based on Delivery : The HST Blog
30
No, it is the province where the goods are delivered that determines the tax rate. Collect or prepaid refers only to who is paying the freight charges and does not influence the tax rate. As per the web site you provided, the transfer of ownership (when the buyer takes actual possession) is the key. In other words, does the buyer take ownership of the goods when they are removed from the sellers dock, or when they arrive at his dock?