HST and Your Navigata Invoice

Starting July 1, 2010, the governments of British Columbia and Ontario will be implementing a new Harmonized Sales Tax (HST) to replace the federal Goods and Services Tax (GST) and Provincial Sales Tax (PST).  The government of Nova Scotia will also be increasing their current rate for HST from 13 to 15 percent. The HST will impact the charges you will see on your Navigata invoice for services delivered in Ontario, British Columbia and Nova Scotia on or after July 1st.

Changes to your Invoice

The tax changes for implementation of the HST will be reflected on your Navigata invoice for the period starting July 1, 2010.  You will see a charge for HST listed at the bottom of the “Current Charges” section of your Navigata invoice replacing the previous charges for GST and PST.

Overview of Harmonized Sales Tax

The new HST will replace the existing GST and PST in BC and Ontario and will apply to most consumer purchases and transactions.  HST is applied according to the same rules and tax base as the GST, therefore any charges previously subject to GST will now have HST applied.

The rate applied for HST beginning July 1st, will vary by province as follows:

 

Ontario

British Columbia

Nova Scotia

Provincial Portion
(Previous PST)

8%

7%

10%

Federal Portion
(Previous GST)

5%

5%

5%

Combined HST rate

13%

12%

15%

 

All invoice charges will be subject to the HST as most telecommunications services are not exempt goods and services.  GST/HST registrants may be eligible to claim a credit, called an input tax credit (ITC), on their GST/HST returns to recover the GST/HST paid or owed on purchases used in their commercial activities.

For more information on the implementation of the harmonized sales tax please visit:

Canada Revenue Agency
http://www.cra-arc.gc.ca/harmonization/

Government of Ontario Sites
http://www.rev.gov.on.ca/en/taxchange/transition.html
http://www.rev.gov.on.ca/en/taxchange/index.html

Government of BC Sites
http://hst.blog.gov.bc.ca/