HST Contractor Information by 1mIa41V

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									                         HST- Information Bulletin for Procom Contractors

Starting July 1st, 2010, the federal GST in Ontario and British Columbia will be combined with the PST to
be a value added harmonized tax (HST). Under the new HST, most goods and services will be subject to
13% tax in Ontario and 12% tax in British Columbia. Additionally, Nova Scotia will increase their existing
HST by 2% for a total of 15% in that province.

What does this mean?

Where the service is being provided in a non-harmonized province or a province which is already
harmonized (i.e. NS, NB and NFLD), there will be no impact to your current process.

In order to ensure that the correct tax rate is used, please use the following as a guideline:

If the goods/services are supplied before July 1st and the service is being provided in Ontario or British
Columbia:

                                Please be sure to submit all hours and appropriate authorized
                                 paperwork (if applicable) worked up to June 30, by July 5
                                Please submit all expenses reports incurred for June or prior by July 5.
                                 Do not include any receipts post June 30th.

If the goods/services are supplied on or after July 1st and the service is being provided in Ontario or
British Columbia:

                                Your invoice date should be no earlier than July 1st
                                the "GST or HST Amount" on any invoice submitted should reflect 13%
                                 HST for Ontario or 12% HST for British Columbia

What do I need to do?

Businesses that are registered for the GST would automatically be registered for the HST and, as a result,
would continue to use their current GST/HST account number for HST. There would be no need to
provide any new documentation for your current contract with Procom.

We recommend that you talk to your business accountant as he/she may be able to provide you more
context.

For full details and more information please click on the following:

http://www.cra-arc.gc.ca/gncy/hrmnztn/menu-eng.html

								
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