To all those business owners, home buyers, real estate investors and residents of Vancouver Island,British Columbia – Here is a great article on “The proposed transitional rules for the elimination of HST in B.C and the switch back to GST has been released.”
As well, the legislation for PST received Royal Assent on May 31, 2012.
Return for GST:
The proposed transitional rules specify how and when the B.C component of the HST would cease to apply to transactions that straddle March 31, 2013. The effective date for the transition for the HST to the GST on taxable supplies made in B.C would be April 1, 2013.
Effective April 1, 2013, the 12% HST would no longer apply on taxable supplies of personal property or services made in British Columbia or to personal property or services imported or brought into British Columbia. Instead, as of that date, the 5% GST would apply to such taxable supplies and importations.
For most taxable supplies made before April 1, 2013, the rate of tax would be determined by the date of GST/HST becomes payable or is paid. If GST/HST becomes payable or is paid before April 1, 2013, the HST rate is 12% would apply. Otherwise, the 5% GST would apply if the tax becomes payable on or after April 1, 2013, or is paid on or after April 1, 2013, without having become payable before that day.
Return to PST:
Consumers will pay PST only on those goods and services that were subject to the tax before July 1, 2010. Consumers will again not pay PST on purchases like food, restaurant meals, bicycles, gym memberships, movie tickets, and others, nor for personal services like haircuts.
Online registration for businesses to register for PST will begin in January 2013.
New measurements to improve the PST include:
New online access for businesses, including the ability to register, update their account, and make payments.
The due date for tax remittance and returns will be moved to the last day of the month to match GST remittances, simplifying administration for business.
The hotel room tax (8% as it was before July 2010) will now be incorporated into the PST – no more separate registration, remittance or returns, reducing paperwork.
The businesses can register with their federal business number, making registration easier.
Retailers will be allowed to refund tax to customers in a broader range of circumstances.
As previously announced, the return to PST will also see:
B.C HST Credit eliminated.
B.C Sales Tax Credit re-implemented
Basic Personal Amount Tax Credit enhancement reversed.
Tobacco Tax Rates adjusted to keep prices levels consistent.
Continuation at 12% of the tax on private sales of vehicles, boats and aircraft.
The PST rate of 10% on liquor will be reinstated with the re-implementation of PST.
Liquor mark-ups will be reduced to generally keep shelf prices constant.
The tax on propane will be re-implemented. The tax rate will be 2.7 cents per litre, the same rate as prior to the implementation of the HST.
Link to Legislations – First Reading
Businesses that collect and remit tax will again receive commission for up to $198 per reporting period (typically monthly).
The Government of British Columbia released a tax information notice concerning enhancements to the B.C new housing rebates and new residential rental property rebates, as well as transitional rules for supplies of residential real property in B.C.
Article supplied by Church Pickard Chartered Accountants.