When will the HST apply?
- It will be implemented effective July 1, 2010
- HST = 13% ( a combination of 5% Federal and 8% Provincial tax )
HST will be applied to amounts paid or payable on or after this date for all Goods and Services that will be provided on or after this implementation date.
Transitional Rule for Services:
Example: A business provides consultation services from May to July 2010 and only 75% of the services is performed in the months of May and June, 2010. This means only 75% of the services is performed in May and June, 2010. The invoice is issued on May 31, 2010.
Answer: The HST will only apply to the remainder 25% of the service performed on or after July,2010. HST does not apply to the 75% of the services that was performed in May and June, 2010
For more information to the HST, you can refer to the link to the CRA website is : http://www.cra-arc.gc.ca/vnts/hrmnztn/menu-eng.html