What's Taxable Under the HST and What's not?

nospam@example.com (RV Team) — Thu, 01 Jul 2010 06:00:00 -0500

Here are examples of common products and services and how they will be affected by the HST.

HOME PURCHASES:

	GST-taxable before July 1, 2010	RST-taxable before July 1, 2010	Is there a change to the amount of tax payable under the HST?
New Homes up to $400,000	5%	No RST	No change*
News Homes over $400,000	5%	No RST	Yes**
Resale Homes	No GST	No RST	No HST
Real Estate Commissions	5%	No RST	Yes (changes to 13%)

The new housing rebate will be 75 per cent of the Ontario component of the HST, up to a maximum of $24,000. The rebate will ensure that buyers of homes priced up to $400,000 will, on average, pay no more tax than under the RST system. However, applicable RST on building supplies is embedded in the price of the home.
** New homes purchased as primary residences, valued at $400,000 or more will be eligible for the maximum new housing rebate of $24,000.

HOME SERVICES:
93 per cent of all homes sold
in Ontario, on average, will not be subject to an additional tax amount
under HST.(The comprehensive tax
package provides Ontarians with $11.8 billion in tax relief over three
years.)

GST-taxable

before July 1,
2010

RST-taxable

before July 1,
2010

Is there a change to

the
amount of tax payable

under the HST?

Cable Television Services 5% 8% No (remains 13%)

Cell Phone Services 5% 8% No (remains 13%)

Electricity and Heating (e.g., Natural Gas/Oil for Home) 5% No RST Yes (changes to 13%)

Home Maintenance Equipment 5% 8% No (remains 13%)

Home Insurance No GST 8% No (remains 8%)

Home Phone Services 5% 8% No (remains 13%)

Home Service Calls to Repair Free-Standing Appliances such as Stoves, Refrigerators, Washers, Dryers, and Televisions 5% 8% No (remains 13%)

Home Service Calls by Electrician/Plumber/Carpenter to Maintain or Repair Furnace, Leaky Faucets, Bathtub, Toilet, Electrical Wiring, etc. 5% No RST Yes (changes to 13%)

Internet Access Services 5% No RST Yes (changes to 13%)

Landscaping, Lawn-Care and Private Snow Removal 5% No RST Yes (changes to 13%)

Municipal Water No GST No RST No HST

BANKING AND INVESTMENTS:

(In Atlantic Canada, investment in machinery and equipment rose
by more than 12 per cent following the move to a harmonized sales tax.)

GST-taxable

before July 1, 2010

RST-taxable

before July 1, 2010

Is there a change to

the amount of tax payable

under the HST?

Mortgage Interest Costs No GST No RST No HST

Most Financial Services No GST No RST No HST

AROUND THE HOUSE:

GST-taxable

before July 1, 2010

RST-taxable

before July 1, 2010

Is there a change to

the amount of tax payable

under the HST?

Home Renovations 5% No RST Yes (changes to 13%)

Household Furniture 5% 8% No (remains 13%)

Barbeques, Lawnmowers, Snowblowers, Sprinklers 5% 8% No (remains 13%)

Building Materials (e.g., Lumber, Concrete Mix) 5% 8% No (remains 13%)

Refrigerators and Freezers

5% 8% No (remains 13%)

Books (including Audio Books) 5% No RST No (remains 5%)

Cleaning Products 5% 8% No (remains 13%)

Crafting Supplies 5% 8% No (remains 13%)

Newspapers 5% No RST No (remains 5%)

Magazines Purchased at Retail 5% 8% No (remains 13%)

Magazines Purchased by Subscription 5% No RST Yes (changes to 13%)

Landscaping Materials
Including Sod, Seeds, Plants 5% 8% No (remains 13%)

Laundry Detergent, Fabric Softeners 5% 8% No (remains 13%)

Linens (e.g., Blankets, Towels, Sheets) 5% 8% No (remains 13%)

Office Supplies, Stationary 5% 8% No (remains 13%)

Outdoor Play Equipment
(e.g., Swing Set, Sandbox, Slides) 5% 8% No (remains 13%)

Patio Furniture

5% 8% No (remains 13%)

Pre-packaged Computer Software

5% 8% No (remains 13%)

Tents, Sleeping Bags, Camping Supplies 5% 8% No (remains 13%)

Tools 5% 8% No (remains 13%)

Toys (e.g., Puzzles, Games, Action Figures, Dolls,
Playsets) 5% 8% No (remains 13%)

LEASES AND RENTALS:

GST-taxable

before July 1, 2010

RST-taxable

before July 1, 2010

Is there a change to

the amount of tax payable

under the HST?

Condo Fees No GST* No RST* No HST*

Residential Rents No GST No RST No HST

Hockey Rink and Hall Rental Fees 5% No RST Yes (changes to 13%)

Residential condo fees charged to residents are exempt; however, purchases by condominium corporations will be subject to HST, if applicable.

ACCOMMODATION AND TRAVEL

CLOTHING AND FOOTWEAR

ELECTRONICS

FOOD AND BEVERAGES
(6.6 million families and individuals in Ontario will receive sales tax transition benefits in three instalments over one year beginning in June 2010.)

HEALTH PRODUCTS AND SERVICES

MEMBERSHIPS, ENTERTAINMENT AND SPORTS EQUIPMENT

MOTORIZED VEHICLES

PROFESSIONAL
AND PERSONAL SERVICES

TOBACCO

To learn more about the benefits of HST visit www.ontario.ca/taxchange. You can also call 1 800 337-7222, teletypewriter (TTY) 1 800 263-7776.
For more information, you can also contact the Canada Revenue Agency. Visit the CRA website at www.cra.gc.ca/harmonization or call 1 800 959-5525.

	GST-taxable before July 1, 2010	RST-taxable before July 1, 2010	Is there a change to the amount of tax payable under the HST?
Cable Television Services	5%	8%	No (remains 13%)
Cell Phone Services	5%	8%	No (remains 13%)
Electricity and Heating (e.g., Natural Gas/Oil for Home)	5%	No RST	Yes (changes to 13%)
Home Maintenance Equipment	5%	8%	No (remains 13%)
Home Insurance	No GST	8%	No (remains 8%)
Home Phone Services	5%	8%	No (remains 13%)
Home Service Calls to Repair Free-Standing Appliances such as Stoves, Refrigerators, Washers, Dryers, and Televisions	5%	8%	No (remains 13%)
Home Service Calls by Electrician/Plumber/Carpenter to Maintain or Repair Furnace, Leaky Faucets, Bathtub, Toilet, Electrical Wiring, etc.	5%	No RST	Yes (changes to 13%)
Internet Access Services	5%	No RST	Yes (changes to 13%)
Landscaping, Lawn-Care and Private Snow Removal	5%	No RST	Yes (changes to 13%)
Municipal Water	No GST	No RST	No HST

Thi Dang - Professional Realtor®

What's Taxable Under the HST and What's not?