yankeeinontario
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The thread discusses the current GST and PST rates in Ontario, particularly in relation to a customer's inquiry about the correctness of the charges on an order. Participants share their understanding of the tax rates and any changes that may have occurred.
Views differ regarding the timing of any tax changes, with some participants recalling a reduction in 2008 while others are uncertain about changes in 2009.
The discussion centers on tax rates applicable in Ontario and the confusion surrounding them, particularly in relation to customer inquiries.
Consultants in Ontario who are navigating customer questions about tax rates may find this discussion relevant.
No, the GST in Ontario was changed in 2009. The federal Goods and Services Tax (GST) was reduced to 5% on January 1, 2008, and Ontario implemented the Harmonized Sales Tax (HST) on July 1, 2010, which combined the provincial sales tax with the GST.
The current Harmonized Sales Tax (HST) rate in Ontario is 13%. This includes the 5% federal GST and an 8% provincial portion.
Ontario stopped using the 8% provincial sales tax on July 1, 2010, when the HST was introduced, combining both the provincial and federal taxes into a single rate.
The HST affects direct sales businesses in Ontario by requiring them to charge the 13% tax on sales. Businesses must also register for a HST number if their taxable sales exceed the threshold set by the Canada Revenue Agency.
Yes, there are certain exemptions from the HST in Ontario. Some goods and services, such as basic groceries, prescription drugs, and certain medical devices, are exempt from HST. However, most consumer goods and services, including those sold by direct sales companies like Pampered Chef, are subject to the tax.