BC-HST is Coming Are You Ready?

BC's Controversial Harmonized Sales Tax (HST) comes into full affect on July 1, 2010 replacing the former PST-GST combination.

Here are some key items for all customers to remember:

1. Consult with your accountant BEFORE committing to any transaction that you are unsure of.  There is a tremendous amount of mis-information regarding this tax and the consequences for being "offside" are expensive.  Do not risk your financial future on urban legends. Canada Revenue Agency (CRA) has a number of detailed links to assist you: HST for British Columbia Transitional Rules New GST/HST Reporting and much more.
2. Product ordered after May 1st, 2010 for delivery after June 30, 2010 will be subject to HST even if they are invoiced before July 1st, 2010.
3. GST/HST is national.  This means that a GST/HST registrant in BC is required to collect the tax based on the rate in effect in the province they are shipping to.  E.g. An Alberta vendor is required to collect 12% when selling and shipping directly to a BC Customer. Similarly a BC vendor is required to collect 5% when selling and shipping directly to an Alberta customer. Again, consult with your professional accountant to confirm any special circumstances that apply to your transaction.

We wish all of our customers the best during these transitional times. Feel free to contact your sales representative if we can be of any assistance whatsoever.