Facts About the HST
Q: What does HST stand for?HST stands for Harmonized Sales Tax.Q: What is the HST?On July 1st, 2010 the provinces of Ontario and British Columbia will implement the HST (Harmonized Sales Tax) to replace the existing GST (Goods & Services Tax) and PST (Provincial Sales Tax).Q: Why are they changing the tax?Presently businesses remit the GST collected to the Federal Government and the PST collected to the Provincial Government, after June 30th both taxes will be collected as the HST and submitted to the Federal Government.Q: Is the percentage or rate of tax going to change?No. Presently PST collected is 8% and GST collected is 5% totaling 13%. After June 30th 2010 the HST collected will be 13%.Q: If the tax rate is not changing why is everyone in a panic to buy certain items such as windows and doors before July 1st, 2010?Though the rate is not changing the new tax will apply to a number of items that are presently exempt from PST.Q: What kinds of items were exempt?There are a number of items such as your gas and hydro bills but the biggest change will be for services provided when you buy a product that is PST exempt.Q: Can you give me an example of this?Supply OnlyIf you purchase windows and doors from Pro Certified before July 1st, 2010 and decided not to have the installation completed by us, you would pay both PST & GST totaling 13% on the products you buy. If you purchase windows and doors after June 30th, 2010 under the same conditions you will still pay 13% but it will be charged HST. Example before July 1st, 2010:
Example after June 30th, 2010:
Supplied and Installed What will change however is the tax charged on services such as the service or installation of products that you purchase and have completed before July 1st, 2010. If you were to buy windows from Pro Certified and decided to have us install them into your home before July 1st, 2010 you would only be charged GST for your purchase or 5% tax. After June 30th, 2010 the same purchase will be charged HST or 13%. Example before July 1st, 2010:
Example after June 30th, 2010:
Q: But I have heard that the Government believes prices will actually be less expensive after the HST is implemented?It is unlikely that purchases will cost less after June 30th, 2010. There will be some credits and rebates available to businesses which will help to offset the impact of the HST. It will be up to each business to decide how much of the new tax they can absorb to keep price down.At Pro Certified Windows & Doors we are working hard to minimize the impact of the HST. We invite you to call us for a free in home estimate for your window and door needs. We believe that the government credits and rebates available to us should be passed on to you the customer. We also believe that you should not be pressured to buy windows and doors because of a deadline. If you have received a quote or are getting a quote from Pro Certified before July 1, 2010 and decide to order from us we will honor the price given to you regardless of when it is installed. Though our invoice after July 1st, 2010 will show HST the bottom line price that you pay will not change. Unlike our competitors our in-home estimates are free. Honesty, integrity and service; three more reasons why at Pro Certified we are the most Preferred the most Referred. For more information on the HST, including information on what is taxable under the HST and what is not, please visit www.ontario.ca/taxchange and www.rev.gov.on.ca/en/taxchange/taxable.html. |
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Toll-Free: 1 (800) 755 0352 Phone: (519) 622 6830 Fax: (519) 622 9134 Email: info@procertified.ca |