Financial Friday: Harmonized Sales Tax – Ready or Not, Here it Comes.

Friday, June 18, 2010  //  0 Comments  //  Ask Hilary, Blog, Finances, Financial Friday

Starting July 1st the GST will replaced by the HST. Is your business ready?

If your business is GST registered, you simply start collecting 13% on July 1st and keep track of your ITC’s (Input Tax Credit) or HST paid on goods and services used by your business, in the same way you did for the GST. Your business will no longer collect or remit the PST. Make sure your point-of-sale, invoicing and recordkeeping systems are updated appropriately. Your business will have to pay the difference out-of-pocket if you don’t.

Businesses with revenues of less than $30,000 in any consecutive four quarters still have the option of not registering and therefore not collecting the HST. However, if your business is not registered it cannot claim ITC’s.

Still have questions about your business and the HST? Contact Hilary for more specific information related to your business.

Hilary L. McDonald, Accountant

www.hilarymcdonald.ca or 905-656-9226