By Ijeoma Ross, YourMoney.ca
The harmonized sales tax goes into effect in Ontario and British Columbia July 1. Instead of GST and a provincial sales tax being added to your purchases at the cash registered, there will only be one combined tax.
In Ontario the tax will be 13% – 5% GST plus 8% provincial retail tax. In B.C., the HST will be 12% because the provincial sales tax is 7%.
B.C. and Ontario join Nova Scotia, New Brunswick and Newfoundland as HST provinces.
Who will be affected?
All residents of B.C. and Ontario and companies based in those provinces.
How does it work?
The HST is collected by the federal government and will charged on most things on which you currently pay GST. There are some exemptions including basic groceries, children’s clothes and shoes, diapers and feminine hygiene products that will not have HST applied to them.
