Harmonized Sales Tax -
Tax Tip
2
Published: February 2010
Content last reviewed: February 2010
ISBN:
978-1-4435-2111-6 (Print), 978-1-4435-2113-0 (PDF), 978-1-4435-2112-3 (HTML)
Notice to the reader: On July 1, 2010 the 13 per cent Harmonized Sales Tax (HST) took effect in Ontario and is administered by the Canada Revenue Agency (CRA). For up-to-date information about the HST, visit the CRA website or call 1 800 959-5525.
This publication was archived and kept for historical purposes. Use caution when you refer to it, since it reflects the law in force at the time it was released and may no longer apply.
As announced in the 2009 Ontario Budget, the Retail Sales Tax will be replaced with a more modern, value-added tax that will be combined with the federal Goods and Services Tax (GST) to create a Harmonized Sales Tax (HST) for Ontario, effective July 1, 2010.
The provincial portion of the HST will be eight per cent and the federal portion will be five per cent, for a combined HST rate of 13 per cent.
GST/HST registrants will need to let customers know if HST is being applied to their purchases.
The disclosure and invoicing requirements for the HST for Ontario will follow the existing rules for the GST/HST.
The Canada Revenue Agency has a number of publications that discuss disclosure and invoicing requirements. Please visit the Canada Revenue Agency's website at www.cra-arc.gc.ca. These publications include:
The Canada Revenue Agency administers the HST. Visit their website at www.cra.gc.ca/gsthst or call 1 800 959-5525 for more information.
