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Part of the CCH Canadian GST webinar series

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Part of the CCH Canadian GST webinar series Powered By Docstoc
					Part of the CCH Canadian GST/HST webinar series
Presenter


  Sheila Wisner, CA
  Advisor and Trainer, Author-CCH Suite of GST
  Products
         AGENDA
1.   Updates
2.   Transitional
3.   Preparation
4.   Mid-Webinar Break
5.   Place of Supply
6.   Government Publications
7.   Questions
          UPDATES
•   Infosheets, Regulations
•   June 9 – Draft HST Regulations
•   June 17 - Amendments to Regulations
            - Electronic Filing Regulations
            - Other Regulations Amended
•   June 30 - New Release 2010-062
            - Interment Rights
            - Streamlined Accounting rates
                 UPDATES
Financial Institutions

•     June 30 Draft Regulations
•     May 19 – DoF Release, Backgrounder
•     June 30 News Release 2010 – 062
              (cservice@cch.ca)
TRANSITIONAL
   RULES
   Transitional Rules

• Real Property

• Tangible Personal Property

• Intangibles

• Services

• Other
            TRANSITIONAL RULES
•Key Dates:
   –Transitional Release Date
       -October 14, 2009 – BC & Ont
       -April 6, 2010 - NS
   –Implementation date – July 1, 2010
   –Specified pre-implementation date – May 1, 201
   –Housing grand-parenting date
       -June 18, 2009 – Ontario
       -November 19, 2009 – BC
       -April 6, 2010 – Nova Scotia
           TRANSITIONAL RULES
               REAL PROPERTY
• Ownership or possession
• Non-residential real property
• Commercial Parking Passes
• Residential Real Property
               ONTARIO

•Residential Real Property new housing
rebate
   –8% PHST minus 2% embedded PST = 75%
                  8% PHST
             75% x PHST paid =
           75% x 8% x $400,000 =
                $24,000 max
          BRITISH COLUMBIA

•Residential Real Property new housing
rebate
   –7% PHST minus 2% embedded PST = 71.43%
                  7% PHST
            71.43% x PHST paid =
          71.43 % x 7% x $525,000 =
                $26,250 max
            NOVA SCOTIA
      First Time Home Buyers Rebate

      Price x 10% = Provincial Portion

      P.P. x 18.75% = Rebate

      Rebate maximum = $1,500




(administered by Service Nova Scotia)
         TRANSITIONAL RULES

     TANGIBLE PERSONAL PROPERTY

• Transfer of ownership or possession
• Prepayments
• Installment contracts
• Lease or license
                   SALE OF EQUIPMENT - WHEN WILL HST APPLY?
Delivered
Before July 1




                invoice                                 invoice


                                       * July 1, 2010




                 No                                               No
                 HST                                              HST
                                                                                      Delivered on or
    SALE OF EQUIPMENT - WHEN WILL HST APPLY?                                          after July 1




invoice             invoice                     invoice                  invoice


            * October 14, 2009            * May 1, 2010           * July 1, 2010




     No                  Supplier                    Supplier                       Supplier
     HST                Does not                       must                           must
                        collect HST                 collect HST                    collect HST




                   Customer may have to
                   self-assess
                        LEASE OF TPP OR REAL PROPERTY
                 Portion of lease interval before July (see
                 Invoices above line)


Invoice no HST         Invoice no HST                Invoice no HST                 Invoice no HST


                  * October 14, 2009               May 1, 2010                 July 1, 2010




     invoice                   invoice                              invoice
    no HST                     no HST                            supplier to
                                                                 collect HST
                                                                 on portion
                                                                                              Part of lease
                                                                                              interval on or
                                                                                              after July 1 (see
                                                                                              invoices below
                                                                                              line)
      Transitional Rules - Subscriptions

  Magazines, newspapers, other
  periodicals
• No HST on payments made before
      July 2010
          TRANSITIONAL RULES

               INTANGIBLES

• When consideration due
• Time of transfer irrelevant
• Special Rules:
   –memberships, admissions, rents, royalties
     Transitional Timing - Purchase of Intangibles

                Only relevant issue is invoice date, other factors irrelevant,
                such as the time of use, date of ownership, etc.



invoice                                                               invoice


                                      * July 1 , 2010




          No                                                 HST
          HST                                               applies




                                                                SPECIAL EXCEPTION - If entire contract is 90%
                                                                complete by July 1, then no HST
                                                                throughout
                                                Transitional - Memberships

                                  Is more then 10% of the membership period on or after July 1, 2010?

                            YES                                                                     NO

 Does any part of the amount for the membership                          GST applies to the full amount for the membership
 become due or is paid without having become due                         regardless of when an amount becomes due or is paid
 on or after May 1, 2010?                                                without having become due.

       YES                                           NO

                            Does any part of the amount for the membership become due or is paid without having
GST applies to any          become due after October 14, 2009, and before May 2010?
amount that relates to
the portion of the
                                      YES                                                                         NO
membership period
that Is before July 2010.
                                  GST applies but certain
HST applies to any                non-consumers have to
amount that relates to            self-assess the provincial
the portion of the                part of the HST on the portion                                          GST applies
membership period                 of the membership period that
that is on or after               is on or after July 1, 2010.
July 1, 2010.
                                                      Transitional - Admissions

                                   Does more than 10% of the event take place on or after July 1, 2010?

                          YES                                                                             NO

 Does any part of the amount for admission become                          GST applies to the full amount for the admission
 due or is paid without having become due on or                            regardless of when an amount becomes due or is paid
 after May 1, 2010?                                                        without having become due.
       YES                                            NO


                                Does any part of the amount for the admission become due or is paid without having
GST applies to any              become due after October 14, 2009, and before May 2010?
part of the amount for
the portion of event
                                       YES                                                                            NO
that takes place before
July 2010.
                                   GST applies but certain
HST applies to any part            non-consumers have to
of the amount for the              self-assess the provincial
portion of event that              part of the HST on the portion                                              GST applies
takes place on or after            of the event that takes place
July 1, 2010.                      on or after July 1, 2010.
          TRANSITIONAL RULES

                   SERVICES

• When payment due
  – Override if 90% performed pre July

• Prepayment
           Transitional - Services

• Funeral and Cemetery Services
• Passenger Transportation Services
• Freight Transportation Services
• Continuous Supply
                               Transitional – Passenger Transportation
                                Does the passenger transportation service begin on or after July 1, 2010?



 Does any part of the amount for the passenger                            GST applies to the full amount for the service
 transportation service become due or is paid                             regardless of when an amount becomes due or is paid
 without having become due on or after May 1, 2010?                       without having become due.



HST applies to any part
of the amount that            Does any part of the amount for the
becomes due or is paid        Transportation service become due or is
without having become         paid without having become due after
due on or after               October 14,2010 and before May 2010?
May 1, 2010.



                GST applies, but certain
                non-consumers have to
                                                                GST applies
                self-assess the provincial
                part of the HST,
           Other Transitional Rules
• Direct Sellers
• Continuous Supplies
• Budget Payment Arrangements
• Combined Supplies
• Progress Payments / Holdbacks
                 Transitional Rules
               Winding Down PST
• General Rules
• Disclosure Requirements
• Final Returns
• Refunds and Rebates
• Assessment, Objections, Appeals and Enforcement
• Transitional Real Property Contracts
• Returns and Exchanges
                ONTARIO

• Insurance
• Private vehicle transfers
• Tourism
• Alcohol
                 B.C. – Other Measures

1.   ICE and SEF Levies (ICE)       6.    Liquor Mark-ups
2.   Battery Levy                   7.    Used Vehicles Private Sales
3.   Passenger Vehicle Rental Tax   8.    Hotel Room Tax
     (PVRT)                         9.    Vancouver Parking Sales Tax
4.   Motor Vehicle Surtax           10.   Income tax
5.   Propane Motor Fuel Tax
 PREPARING FOR
HARMONIZATION
Preparing for Harmonization

Sales
• Contracts
• Pricing
• Invoice Coding
• Sales to Provincial Ministries
• Point of Sale Invoicing
                                Sales Invoices Sales Tax Charges
                                       as at July 1, 2010
                                     Services                     Goods                Intangibles
British Columbia                     HST @12%                   HST @12%              HST @12%
Alberta                              GST @5%                    GST @ 5%              GST @5%
Saskatchewan                        GST1 @5%               GST @ 5%, PST @ 5%        GST1 @5%
Manitoba                            GST1 @5%               GST @ 5%, PST @ 7%        GST1 @5%
Ontario                             HST2 @13%                   HST @ 13%             HST @13
Quebec                          GST @ 5%,QST3 -7.5%                     3
                                                           GST @ 5%, QST @ 7.5% GST @ 5%, QST3 @ 7.5%
New Brunswick                        HST @13%                   HST @ 13%             HST @13%
Nova Scotia                          HST @15%                   HST @ 15%             HST @15%
Prince Edward Island                GST1 @5%                            3
                                                           GST @ 5%, PST @ 10%       GST1 @5%
Newfoundland & Labrador              HST @13%                   HST @ 13%             HST @13%

                      Notes
                              1 Certain exceptions apply. Some services and intangibles are subject to PST.
                              2 Ontario PST will apply on insurance
                              3 Quebec QST and PEI PST are calculated on the GST-included price.


* the purchase or rent of buildings or land (such as office rent) is not addressed herein
The chart below shows the provinces which will pay the GST/HST, effective July 1, 2010.




                                   Which Provinces Will Pay HST?
                               The chart below shows the provinces that will pay GST/HST,
                               effective July 1, 2010.

                          PROVINCE / TERRITORY                                       PAY GST/HST as of
                                                                                     July 2010
                          British Columbia                                                  yes
                          Alberta
                          Saskatchewan
                          Manitoba
                          Ontario                                                           yes
                          Quebec
                          New Brunswick                                                     yes
                          Nova Scotia                                                       yes
                          Prince Edward Island                                              yes
                          Newfoundland & Labrador                                           yes
                          Northwest Territories
                          Nunavut                                                           yes
                          Yukon Territory
                       Provincial Ministry Certification
 This is to certify that the property and/or services ordered/purchased hereby are being purchased by
 Name of Provincial/Territorial Government Department or Institute
 with Crown funds, and are therefore not subject to the Goods and Services Tax.
                                                             Signature of Authorized Official


The certificates can only be used for purchases made in the name of the province.
They may not be used for purchases by employees in their own name, even while
on travel in the course of official provincial business. In these cases, the employee
will be considered the final consumer, and, even if the province reimburses the
employee for any business-related purchases, no special relief will be available.
Point-of-Sale Invoicing – OPTION 1
Point-of-Sale Invoicing – OPTION 2
  Preparing for Harmonization

Purchases

   • Large Business ITC Restrictions
   • Vendors Payable Coding
   • Expense Reports
   • PSB Rebate System
Large Business temporary ITC restrictions

• Energy
• Telecommunications
• Road Vehicles
• Fuel
• Food, beverages and entertainment
                                   Energy
Ontario & British Columbia
Energy expenditures with restricted ITCs (RITCs) include electricity, gas, fuel,
   steam, and incidental costs such as delivery charges or regulatory fees.
   The RITC does not include energy included in a commercial rental lease.

Quebec QST
Energy expenditures with restricted ITRs include electricity, gas, fuel, steam,
   and incidental costs such as delivery charges or regulatory fees. The
   restrictions do not apply to energy included in a commercial rental lease.
                     Telecommunication services
Ontario & British Columbia
Telecommunication services with restricted ITCs (RITCs) include telephones charges,
    long distance charges, cellular phone charges, email and data transmission
    charges, cable and pay TV, satellite TV and radio, facsimile services, and monthly
    flat fees for such telecommunications. The RITC does not include internet access
    services; web-hosting services; and toll-free telephone services.
Quebec QST
Telecommunication services with restricted ITRs (RITRs) include telephones charges,
    long distance charges, cellular phone charges, email and data transmission
    charges, cable and pay TV, satellite TV and radio, facsimile services, and monthly
    flat fees for such telecommunications. The restrictions do not apply to internet
    access services; web-hosting services; and toll-free telephone services.
                                 Vehicles
Ontario & British Columbia
Vehicles with restricted ITCs (RITCs) include vehicles that are purchased or
   leased (even if the purchase happened or the lease commenced before
   July 1, 2010). It also includes parts acquired within 12 months of
   acquisition of a vehicle, such as the installation of an anti-theft system.
   The RITC requirement does not apply to vehicle parts and services
   acquired for the routine repair or maintenance of a vehicle.
Quebec QST
Vehicles with restricted QST ITRs include vehicles that are purchased or
   leased.
                                       FUEL
Ontario
The RITC requirement applies to fuel for use by a vehicle subject to RITCs.


BC
No restriction.


Quebec QST
The RITR requirement applies to fuel for use by a vehicle subject to RITRs.
                         MEALS & ENTERTAINMENT

Ontario & British Columbia
•   This category of RITCs includes food / beverages and entertainment, to the extent
    that the expenditure is subject to the existing (generally 50%) income tax
    restriction and GST ITC restriction. Meals and entertainment subject to the RITC
    requirement does not include:
     – meals or entertainment acquired for certain events where all employees from
         a particular location areinvited (e.g., an office Christmas party); and
     – meals or entertainment for an employee in situations where the expenses are
         required to be included in the employee’s income as a taxable benefit for
         income tax purposes.
Quebec QST – same as above
BRITISH COLUMBIA                      GST Paid   BCHST Paid   RITC-BCp       RITC-BCf     PST-BC paid
                                       ##-###      ##-###       ##-###        ##-###         ##-###
                                                              7/12 of HST   5/12 of HST

                        Expenditure

Energy
Utilities                                                          X             X
Telecommunications
Telephone/Communications                                           X             X
Cellular/pager mobile                                              X             X
E-mail                                                             X             X
Communications Network                                             X             X
Vehicles
Auto Lease Charge                                                  X             X
Food, Bev, Entertainment
Travel & Entertainment                                             X             X
Business Meals/Entertainment                                       X             X
Most other expenses                                  X
ALBERTA                                  GST Paid

                                          ##-###



                           Expenditure

Energy
Utilities                                    X
Telecommunications
Telephone/Communications                     X
Cellular/pager mobile                        X
E-mail                                       X
Communications Network                       X
Vehicles
Auto Lease Charge                            X
Fuel
Auto Repairs / maintenance                   X
Food, Bev, Entertainment
Travel & Entertainment                       X
Business Meals/Entertainment                 X
All other expenses                           X
SASKATCHEWAN                       GST Paid   PST-SASK Paid
                                    ##-###         ##-###


                     Expenditure

Energy
Utilities                              X             X
Telecommunications
Telephone/Communications               X             X
Cellular/pager mobile                  X             X
E-mail                                 X             X
Communications Network                 X             X
Vehicles
Auto Lease Charge                      X             X
Fuel
Auto Repairs / maintenance             X             X
Food, Bev, Entertainment
Travel & Entertainment                 X             X
Business Meals/Entertainment           X             X
Most other expenses                    X             X
MANITOBA                               GST Paid   PST-MAN Paid
                                        ##-###        ##-###


                         Expenditure
Energy
Utilities                                  X            X
Telecommunications
Telephone/Communications                   X            X
Cellular/pager mobile                      X            X
E-mail                                     X            X
Communications Network                     X            X
Vehicles
Auto Lease Charge                          X            X
Fuel
Auto Repairs / maintenance                 X            X
Food, Bev, Entertainment
Travel & Entertainment                     X            X
Business Meals/Entertainment               X            X
Most other expenses                        X            X
  ONTARIO                      GST Paid   OHST Paid    RITC-Op       RITC-Of      PST-O paid
                                ##-###      ##-###       ##-###        ##-###       ##-###
                                                      8/13 of HST   5/13 of HST

                 Expenditure
Energy
Utilities                                                  X             X
Telecommunications
Telephone/Communications                                   X             X
Cellular/pager mobile                                      X             X
E-mail                                                     X             X
Communications Network                                     X             X
Vehicles
Auto Lease Charge                                          X             X
Fuel
Auto Repairs / maintenance                                 X             X
Food, Bev, Entertainment
Travel & Entertainment                                     X             X
Business Meals/Entertainment                               X             X
Most other expenses                           X
     QUEBEC                           GST Paid   QST paid   QST - RITR Paid
                                       ##-###     ##-###          ##-###


                        Expenditure

Energy
Utilities                                 X                          X
Telecommunications
Telephone/Communications                  X                          X
Cellular/pager mobile                     X                          X
E-mail                                    X                          X
Communications Network                    X                          X
Vehicles
Auto Lease Charge                         X                          X
Fuel
Auto Repairs / maintenance                X                          X
Food, Bev, Entertainment
Travel & Entertainment                    X                          X
Business Meals/Entertainment              X                          X
other expenses                            X          X
NEW BRUNSWICK                     GST Paid   NBHST Paid
                                   ##-###      ##-###


                    Expenditure
Energy
Utilities                                        X
Telecommunications
Telephone/Communications                         X
Cellular/pager mobile                            X
E-mail                                           X
Communications Network                           X
Vehicles
Auto Lease Charge                                X
Fuel
Auto Repairs / maintenance                       X
Food, Bev, Entertainment
Travel & Entertainment                           X
Business Meals/Entertainment                     X
Most other expenses                              X
NOVA SCOTIA                            GST Paid   NSHST Paid
                                        ##-###      ##-###


                         Expenditure

Energy
Utilities                                              X
Telecommunications
Telephone/Communications                               X
Cellular/pager mobile                                  X
E-mail                                                 X
Communications Network                                 X
Vehicles
Auto Lease Charge                                      X
Fuel
Auto Repairs / maintenance                             X
Food, Bev, Entertainment
Travel & Entertainment                                 X
Business Meals/Entertainment                           X
Most other expenses                                    X
PEI                                   GST Paid   PST-PEI Paid
                                       ##-###        ##-###


                        Expenditure

Energy
Utilities                                 X            X
Telecommunications
Telephone/Communications                  X            X
Cellular/pager mobile                     X            X
E-mail                                    X            X
Communications Network                    X            X
Vehicles
Auto Lease Charge                         X            X
Fuel
Auto Repairs / maintenance                X            X
Food, Bev, Entertainment
Travel & Entertainment                    X            X
Business Meals/Entertainment              X            X
Most other expenses                       X            X
Nfld & LABRADOR                     GST Paid   NFLHST Paid
                                     ##-###        ##-###


                      Expenditure

Energy
Utilities                                            X
Telecommunications
Telephone/Communications                             X
Cellular/pager mobile                                X
E-mail                                               X
Communications Network                               X
Vehicles
Auto Lease Charge                                    X
Fuel
Auto Repairs / maintenance                           X
Food, Bev, Entertainment
Travel & Entertainment                               X
Business Meals/Entertainment                         X
Most other expenses                                  X
     11
2/1 and 12/1
2 5% 12
     12/1
     12
3/1 and 13/1
3 9% 13
     4/10
     4
 10 and 5/10
     3% 5
 5/1 7.5/1
7.5 07.5
     and
 1 4.7 7.5/1
     % 07.5
     14/1
     14
5/1 and 15/1
5 11% 15
     12/1
     12
3/1 and 13/1
3 9% 13

   4/10
   4
10 and 5/10
   3% 5




                                    EMPLOYEE EXPENSE RATIOS

                                    CANADIAN SALES TAXES - RATIOS
                                                       (effective July 1, 2010)
                                            Employee            Employee              Employer Remittance    Employee
                                       Reimbursement            Allowance               Employee Benefit      Rebates
                                                                                              (auto)


               BC                   11/111             12/112                     11/111 and 5%             12/112
               Ontario              12/112             13/113                     12/112 and 9%             13/113
               Quebec - GST         4/104              5/105                      4/104 and 3%              5/105
               Quebec - QST         7/107 or 4.1%      7.5/107.5 or 4.1%          7.5/107.5 and 4.7%        7.5/107.5
               NS                   14/114             15/115                     14/114 and 11%            15/115
               NB,Nfld              12/112             13/113                     12/112 and 9%             13/113
               Alta,Sask,Man, PEI   4/104              5/105                      4/104 and 3%              5/105
          Meals Reimbursement                       Mileage claim

Meal             100                      Km driven = 100
HST               13                      allowance per km = 52¢
tip               17                      province = Ontario

Reimbursement amount =           130.00   Mileage claim amount =          52.00
Proxy HST paid                            Proxy HST paid
           ratio      12/112                         ratio   13/113
           amount                 13.93              amount                5.98
Federal component                         Federal component
           ratio       5/13                          ratio     5/13
           amount                  5.36              amount      A         2.30
           denied ITC      50%     2.68   Provincial component
           net ITC        A        2.68              ratio     8/13
Provincial component                                 amount      B         3.68
           ratio       8/13
           amount         B        8.57
ITC claim =               A        2.68   ITC claim =              A       2.30

Restricted ITC to be reported             Restricted ITC to be reported
                          B        8.57                            B       3.68
                    Federal & Provincial PSB Rebates
PSB                    BC    Ont    NB       NS      NFLD   Fed

Municipalities                     57.14%   57.14%
                       75%   78%                     0%     100%

Univ & Colleges
                       75%   78%    0%      67%      0%     67%

School Boards
                       87%   93%    0%      68%      0%     68%

Hospitals
                       58%   87%    0%      83%      0%     83%

Charities & Q N-P
                       57%   82%   50%      50%      50%    50%
Preparing for Harmonization


  GST/HST Reporting

     • Cash Flow
     • Electronic Filing
     • Streamlined Accounting
ELECTRONIC FILING
     4.40      6.10 3.60
        %         % %




     3.30      5.00 2.50
        %         % %




     5.00      6.60 4.10
        %         % %




% remittance rate for
 o a credit on those sales as

 13% or 15% on
 GST on those




                                                                              STREAMLINED ACCOUNTING
                                                                        Remittance Rates - Quick Method of Accounting
                                                                                                   Supplies Made In

                                                                          Non-participating             ON, NB,             NS             BC
                                                                          provinces                     Nfld & Lab

                                i) Mainly Purchases of Goods
                                   for Resale
                                (Permanent Establishment in)

                                Non-partipating provinces                       1.80%                         8.80%              10.40%         8.00%

                                ON, NB, Nfld & Lab                             0.00% *                        4.40%                6.10%        3.60%
                                                                          (credit 2.8%)*

                                NS                                             0.00% *                        3.30%                5.00%        2.50%
                                                                          (credit 4.0%)*

                                BC                                              0.00% *                       5.00%                6.60%        4.10%
                                                                          (credit 2.3%)*

                                * Businesses who us the 0% remittance rate for eligible sales are entitled to a credit on those sales as they
                                generally pay HST at 12%, 13% or 15% on their inputs but collect 5% GST on those sales.
10.5   12.0 9.70
 0%     0% %



8.80   10.4 8.00
   %    0% %


8.40   10.0 7.60
   %    0% %


9.00   10.6 8.20
   %    0% %




                                                  STREAMLINED ACCOUNTING


                                                                      Supplies Made In

                                                  Non-participating       ON, NB,        NS            BC
                                                  provinces               Nfld & Lab

                   i) Mainly Provides Services

                   (Permanent Establishment in)

                   Non-partipating provinces          3.60%                  10.50%           12.00%        9.70%

                   ON, NB, Nfld & Lab                 1.80%                   8.80%           10.40%        8.00%

                   NS                                 1.40%                   8.40%           10.00%        7.60%

                   BC                                 2.10%                   9.00%           10.60%        8.20%
     4.40      6.10 3.60
        %         % %




     3.30      5.00 2.50
        %         % %




     5.00      6.60 4.10
        %         % %




% remittance rate for
 o a credit on those sales as

 13% or 15% on
 GST on those




                                Remittance Rates for Registrants That Provide a Point –of-Sale
                                 Rebate on Eligible Supplies When Using the Quick or Special
                                                     Method of Accounting

                                                                Supplies Made in Point-of-sale eligible participating province
                                 ( Type of Supplier)

                                 Business mainly purchases for resale                               1.80%

                                 Business mainly provides services                                  3.60%

                                 Municipality                                                       4.70%

                                 University of Public College (if supplies                          4.10%
                                 through vending machines account for
                                 at least 25% of total supplies)

                                 School authority                                                   4.40%

                                 Hospital authority, external supplier or                           4.50%
                                 facility operator.

                                 Specified facility operator,                                       3.60%
                                 Qualifying non-profit
                                 Organized or designated charity
 MID-WEBINAR
STRETCH BREAK
  2 MINUTES
                        CCH Smart Charts
A unique CCH innovation! Select options to receive answers in a quick reference chart.
Cross reference to legislation, commentary, and government documents.
PLACE OF SUPPLY
    RULES
    Place of Supply Rules
•     Real Property
•     Tangible Personal Property
•     Services
•     Intangible Personal Property
•     Imports
                   Place of Supply

Real Property
  – Where located
  – Separate supplies if on a provincial border
                   Place of Supply
Tangible Personal Property
  • Sale
    -Where delivered or made available
    -Deemed Delivery Rules
  •Lease
     •Short Term
     •Long-term
                 Place of Supply
Tangible Personal Property
  • Special Rules
     -Motor Vehicle
        • Sale
        • Short-term rental
        • Long-term lease
                 Place of Supply


Tangible Personal Property
  • Special Rules
     - Railcars
     - Photographic materials
                  Place of Supply
Services
  • New Rules for all provinces
     – BC, Ontario
     – NB, Nfld&L, NS
  • Services in relation to real/personal property
  • General Rule
     - Focus on address of recipient
     - Place of negotiation no longer relevant
                    PLACE OF SUPPLY OF SERVICES GENERAL RULE

                          Is address of         YES
                                                            Supply in that
                          recipient known?                  Province

                               NO
                                                                               HST APPLIES
                         Is the service         YES         Supply in that     Supply in PP
                         performed in only                  Province               where
                         one province                                                %
                             (>90%)                                            performance
                                                                                is greatest
                                NO
                                                                                     or
Supply is in                                          YES
non-Participating                                                             If tied highest %
                            Is the percentage of
                                                                              of performance,
Province,                   performance in the                                supply is in tied
GST applies                 participating province                           prov. With highest
                    NO
                                (>50%)                                             HST rate
           PLACE OF SUPPLY OF SERVICES
                          Address Obtained

If one address obtained – that business address is P.o.S.

If two or more addresses (head office billing address and a branch)
          – PoS is the address most closely connected to the supply


     ** Note: Supplier’s address is irrelevant
             PLACE OF SUPPLY OF SERVICE
                          No Address obtained

• If Service Performed Primarily in Participating Provinces (> 50%)
       Province with greatest portion of service performed
       If equal portions, province with highest HST rate


• If Service not Performed Primarily in participating provinces
       P.o.S. is in non-participating province
               Place of Supply
Services – Special Rules
  – Freight Transportation
  – Passenger Transportation
  – Telecommunication Services
  – Postage
  – Repair Services
  – Computer / Internet
                  Place of Supply
Intangible Personal Property
   – If related to:
      • Real Property
      • TPP
   - General Rule
      • Wherever use permitted, ie, not restricted
       Division III, IV, IV.1 – IMPORTS
• Importing vs. Bringing Into a PP
• Imported Goods
• Imported Services
• Goods Brought into a PP
• Services and Intangibles
                 brought into a PP
Harmonization 2010
“When & Where”




            GOVERNMENT
           PUBLICATIONS ON
         HARMONIZATION 2010
          Place of Supply Publications – Federal

•   February 25, 2010, “Place of Supply, Self-Assessment and Rebates Rules for the Harmonized
    Sales Tax (HST)”
•   April 30, 2010, “Draft Regulations in Respect of the Place of Supply of Property & Services”
•   February 2010, GST/HST Technical Information Bulletin B-103, “Place of supply rules for
    determining whether a supply is made in a province”
•   June 9, 2010 – Final New Harmonized Value-added Tax System Regulations (Excise Tax Act)
•   CBSA: The Canada Border Services Agency's Implementation of the Ontario and British
    Columbia Harmonized Sales Tax
    Transitional Rules Publications – Info Sheets
•   GI-053, – “Freight Transportation Services”
•   GI-054, – “Passenger Transportation Services”
•   GI-055, – “Transportation Passes”
•   GI-056, – “Services”
•   GI-057, – “Memberships”
•   GI-058, – “Admissions”
•   GI-059, – “Intangible Personal Property”
•   GI-069, – “Direct Sellers”
•   GI-070, – “Goods”
•   GI-071, – “Tour Packages”
•   GI-073, – “Payment of the GST/HST by Ontario and B.C. Government Entities”
•   GI-074, – “Funeral Arrangements”
       Transitional Rules Publications – Federal
•   GST/HST Notice 244, Questions and Answers on Housing Rebates and Transitional Rules for
    Housing and Other Real Property Situated in Ontario
•   GST/HST Notice 246, Questions and Answers on Housing Rebates and Transitional Rules for
    Housing and Other Real Property Situated in British Columbia
•   GST/HST Notice No. 247 — Harmonized Sales Tax for Ontario and British Columbia —
    Questions and Answers on General Transitional Rules for Personal Property and Services
•   GST/HST Notice No. 249: Questions and Answers on the New Reporting Requirements for
    GST/HST Registrants
                HST Publications – Residential Housing
• GI-077/078 – “Purchasers of New Housing in Ontario/BC”
• GI-079/080 – “New Housing Rebate Ontario/BC”
• GI-081/082 – “Information on Owner-built Homes, Mobile Homes and Floating Homes in BC/Ontario”
• GI-083/084 – “Information for Builders of New Housing in Ontario/BC
• GI-085/086/087 – “Stated Price Net of GST > HST New Housing Rebates in Ontario/BC/NS”
• GI-088 - Stated Price Net of GST > HST New Housing Rebates and the Ontario RST Transitional New
 Housing Rebate
• GI-089 - Stated Price Net of GST > HST New Housing Rebates and the British Columbia PST Transitional
 New Housing Rebate
• GI-090 - Builder Disclosure Requirements in Ontario and British Columbia
• GI-093/094 – “New Residential Rental Property Rebate” Ontario/BC
                                 HST Publications - Other
• GI-063 – “Point-of-Sale Rebate on Children’s Goods”
• GI-065 – “Point-of-Sale Rebate on Books”
• GI-072 – “HST and First Nations in Ontario and British Columbia”
• GI-073 – “Payment of the GST > HST by Ontario and B.C. Government Entities”
• GI-074 – “Prepaid Funeral and Cemetery Arrangements and Interment Rights”
• GI-075 – “Returns and Exchanges”
• GI-076 – “Continuous Supplies and Budget Payment Arrangements”
• CRA: Tax Tip - The Canada Revenue Agency answers questions on the harmonized sales tax (HST)
• No. 254 - Collecting First Nations Taxes in a Participating Province
• B-104 - Harmonized Sales Tax – Temporary Recapture of Input Tax Credits in Ontario and British Columbia
• BC Finance: HST Notice #5 - Notice to Energy Suppliers Residential Energy Credit Program for British
 Columbia Harmonized Sales Tax (HST)
                                     Nova Scotia

• NS Finance: Transitional Rules for the Nova Scotia HST Rate Increase, released April 6, 2010

• NS Finance: HST Tax Credits and Rebates

• NS Finance: General HST Backgrounder

• NS Finance: HST Information for Families

• Final Nova Scotia HST Regulations, 2010, April 29, 2010



.
       Transitional Rules Publications – Ontario
•   Harmonized Sales Tax Information Notice 2 — Helping Homebuyers and the Housing Industry
    with an Enhanced New Housing Rebate, a New Rental Housing Rebate and Transitional Rules
•   Harmonized Sales Tax Information Notice 3 — General Transitional Rules for Ontario HST
•   Harmonized Sales Tax Information Notice 4 — Additional Information for Homebuyers and
    the Housing Industry under Ontario HST
•   Harmonized Sales Tax Information Notice 5 — Temporary Recapture of Input Tax Credits
    Requirement
•   Harmonized Sales Tax Information Notice 6, Supplies of Taxable Property and Services to
    Ontario Government Entities
                                   Other - Ontario
• Harmonized Sales Tax Tip 1: Prepare for Ontario's HST: Restricted Input Tax Credits
• Harmonized Sales Tax Tip 2: Prepare for Ontario's HST: Invoicing Requirements
• Harmonized Sales Tax Tip 3 — Compensation for RST Vendors
• Harmonized Sales Tax Tip 4 — Insurance Premiums
• Harmonized Sales Tax Tip 5 – Public Service Bodies
• Harmonized Sales Tax Tip 7 — Small Business Transition Support
• Harmonized Sales Tax Tip 8 — Accounting and Systems Changes
• Harmonized Sales Tax Tip 9 – Point-of-Sale Rebates
• Harmonized Sales Tax Tip 11 – Point-of-Sale Rebate for Qualifying Prepared Food and Beverages
$4.00 and Under
• Harmonized Sales Tax ON Revenue: What’s Taxable Under the HST and What’s Not? (Answering your
questions about Ontario’s Harmonized Sales Tax)
                                     BC Notices
•   HST Notice #1 — General Transitional Rules for British Columbia HST
•   HST Notice #3 — Residential Housing – New Housing Rebates and Transitional Rules for
    British Columbia HST
•   HST Notice #4 — Temporary Recapture of Input Tax Credits Requirement
•   HST Notice # 6 —Suppliers of Taxable Property and Services to the BC Government
•   HST Notice #7 — HST Invoicing Requirements
•   HST Notice #8 — General PST Transitional Rules for Transitioning to British Columbia HST
•   HST Notice #9 — Hotel Room Tax Transitional Rules for Transitioning to British Columbia HST
        SUMMARY
1.   Publications
2.   Place of Supply Rules
3.   Preparation
4.   Transitional Rules
5.   Latest Updates
Thank-you, from
           Sheila Wisner
                                  &
                             CCH Canadian Limited


                  Please complete evaluation form


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Thank-you, from
           Sheila Wisner
                                  &
                             CCH Canadian Limited


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