Harmonized Sales Tax – What you need to know about the HST
What is HST?
The Harmonized Sales Tax is a single 13 per cent sales tax. It combined the existing eight per cent Provincial Sales Tax and the five per cent federal Goods and Services Tax.
The HST came into effect on July 1, 2010.
Did you know?
- About 83 per cent of products and services purchased by consumers did not see new tax.
- You will not pay the provincial portion of the HST on:
- Newspapers
- Children's clothing and footwear
- Children's car seats and car booster seats
- Diapers
- Feminine hygiene products
- Books (including audio books)
Helping Consumers Transition to the HST
To help ease the transition to the HST, some transition rules took effect May 1.
- As of May 1, if you paid for something that you're going to use on or after July 1, the HST would generally apply.
- You should not be charged HST for any goods received or services performed before July 1.
Important exemptions while transitioning to the HST
- You should not be charged HST if you paid before July 1, 2010 for:
- Magazine subscriptions
- Prepaid funerals if the contract is entered into in writing before July 1, 2010
- Most transportation services if the journey begins before July 1
List of taxable and non-taxable items under the HST
For a comprehensive list of taxable and non-taxable items under the HST, visit www.Ontario.ca/taxchange.
