HST (Harmonized Sales Tax) proposed to commence in BC on July 1, 2010. This tax will replace the existing provincial sales tax on goods and will be governed by the same legislation that governs GST. Transitional rules will be invoked, as will credits for various parties (e.g. low income, home purchase, etc.) and exemptions for certain items, such as fuel. The existing provincial sales tax only covers goods, whereas the proposed HST covers services. For example, commercial lease payments will be subject to HST, so leases will have to be reviewed.
For professional advice on HST or any other related issue, please contact us. Kim Johnson is available for media commentary on the HST.
