Ontario And British Columbia Announce HST Transitional Rules

Copyright 2009, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Tax, October 2009

The governments of Ontario and British Columbia recently released transitional rules that will apply for transactions that straddle the July 1, 2010 implementation date for the new harmonized sales tax (HST). The rules will determine whether the existing provincial sales tax (PST) or HST will apply. The Ontario HST rate will be 13% (5% federal component and an 8% provincial component); the B.C. HST rate will be 12% (5% federal component and a 7% provincial component). The transitional rules for both provinces are substantially the same to help facilitate a smooth transition.