| |
 Your Money
Matters
June
2010 Issue
What’s Taxable Under the HST and What’s Not?
Here
are examples of common products and services and how they will be
affected by the HST.
 |
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?
|
|
Adult Clothing |
5% |
8% |
No (remains 13%) |
|
Children’s Clothing |
5% |
No RST |
No (remains 5%) |
|
Shoe Repair Service |
5% |
8% |
No (remains 13%) |
|
Children’s Footwear |
5% |
No RST
if $30 or less |
No for footwear up to size 6 (remains 5%) |
|
Tailoring Services |
5% |
8% |
No (remains 13%) |
|
Dry Cleaning Service |
5% |
No RST |
Yes
(changes to 13%) |
FOOD AND
BEVERAGES:
Did You Know?
6.6 million
families and individuals in Ontario will receive sales tax
transition benefts in three instalments over one year beginning in June 2010.
 |
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?
|
| Basic
Groceries (e.g., Dairy, Meat, Vegetables, Canned goods) |
No GST |
No RST |
No HST |
|
Snack
Foods (e.g., Chips, Pop) |
5% |
8% |
No (remains 13%) |
| Qualifying Prepared Food and
Beverages Sold for $4.00
or Less |
5% |
No RST |
No (remains 5%) |
| Restaurant Meals for More than $4.00 |
5% |
8% |
No (remains 13%) |
|
Alcoholic Beverages |
5% |
10-12% |
HST 13%1 |
| |
|
|
|
1 |
|
Although sales
tax on alcohol is decreasing, other alcohol fees and taxes are
changing to continue to support social responsibility. |
| |
|
|
HOME SERVICES:
Did You Know?
93 per cent of all homes sold in Ontario, on
average, will not be subject
to an additional tax amount under HST.
 |
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%) |
|
Municipal Water |
No GST |
No RST |
No HST |
|
Home
Maintenance Equipment |
5% |
8% |
No (remains 13%) |
|
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 Insurance |
No GST |
8% |
No (remains 8%) |
Electricity and Heating
(e.g.,
Natural Gas/Oil for Home) |
5% |
No RST |
Yes
(changes to 13%) |
|
Internet Access Services |
5% |
No RST |
Yes
(changes to 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%) |
|
Landscaping, Lawn-Care and Private Snow Removal |
5% |
No RST |
Yes
(changes to 13%) |
|
ACCOMMODATION
AND TRAVEL: |
 |
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? |
|
Luggage, Briefcases, Bags, etc. |
5% |
8% |
No (remains 13%) |
|
Municipal Public Transit |
No GST |
No RST |
No HST |
|
GO Transit |
No GST |
No RST |
No HST |
| Air
travel originating in Ontario and terminating in the
U.S.2 |
5% |
No RST |
No (remains 5%) |
| Air
travel originating in Ontario and terminating outside of
Canada and
the U.S.3 |
No GST |
No RST |
No HST |
| Rail, boat and bus travel originating
in Ontario and terminating
outside of Canada |
No GST |
No RST |
No HST |
|
Hotel Rooms |
5% |
5% |
Yes
(changes to 13%) |
|
Taxis |
5% |
No RST |
Yes
(changes to 13%) |
|
Camping Sites |
5% |
No RST |
Yes
(changes to 13%) |
|
Domestic air, rail, boat and bus travel originating in
Ontario |
5% |
No RST |
Yes
(changes to 13%) |
| |
|
|
|
2 |
|
Includes air travel terminating in
the French islands of St. Pierre and Miquelon but does not
include air travel terminating in Hawaii. |
| |
|
|
|
3 |
|
Includes air travel terminating in
Hawaii but does not include air travel terminating in the
French islands of St. Pierre and Miquelon. |
AROUND THE HOUSE:
Did You Know?
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? |
|
Cleaning Products |
5% |
8% |
No (remains 13%) |
|
Laundry
Detergent, Fabric Softeners |
5% |
8% |
No (remains 13%) |
|
Household Furniture |
5% |
8% |
No (remains 13%) |
|
Refrigerators and Freezers |
5% |
8% |
No (remains 13%) |
|
Pre-packaged Computer Software |
5% |
8% |
No (remains 13%) |
|
Books
(including Audio Books) |
5% |
No RST |
No (remains 5%) |
|
Newspapers |
5% |
No RST |
No (remains 5%) |
|
Magazines Purchased at Retail |
5% |
8% |
No (remains 13%) |
|
Offce Supplies, Stationary |
5% |
8% |
No (remains 13%) |
| Landscaping Materials
Including Sod, Seeds, Plants |
5% |
8% |
No (remains 13%) |
| Linens
(e.g., Blankets, Towels, Sheets) |
5% |
8% |
No (remains 13%) |
| Tents,
Sleeping Bags, Camping Supplies |
5% |
8% |
No (remains 13%) |
|
Tools |
5% |
8% |
No (remains 13%) |
|
Patio Furniture |
5% |
8% |
No (remains 13%) |
| Barbeques, Lawnmowers, Snowblowers,
Sprinklers |
5% |
8% |
No (remains 13%) |
| Toys
(e.g., Puzzles, Games, Action Figures, Dolls, Playsets) |
5% |
8% |
No (remains 13%) |
Outdoor Play Equipment
(e.g.,
Swing Set, Sandbox, Slides) |
5% |
8% |
No (remains 13%) |
|
Crafting Supplies |
5% |
8% |
No (remains 13%) |
|
Building Materials (e.g., Lumber, Concrete Mix) |
5% |
8% |
No (remains 13%) |
| Magazines Purchased by Subscription |
5% |
No RST |
Yes
(changes to 13%) |
|
Home Renovations |
5% |
No RST |
Yes
(changes to 13%) |
 |
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? |
|
Vehicle Parts |
5% |
8% |
No (remains 13%) |
|
Short-Term Auto Rentals |
5% |
8% |
No (remains 13%) |
|
Lease of a Vehicle |
5% |
8% |
No (remains 13%) |
|
Child
Car Seats and Booster Seats |
5% |
No RST |
No (remains 5%) |
|
Auto Insurance |
No GST |
No RST |
No HST |
|
Labour
Charges to Repair Vehicle |
5% |
8% |
No (remains 13%) |
|
Oil Change |
5% |
8% |
No (remains 13%) |
|
Tires |
5% |
8% |
No (remains 13%) |
|
Window Repair |
5% |
8% |
No (remains 13%) |
|
Purchase of Vehicle from Dealer |
5% |
8% |
No (remains 13%) |
|
Boats |
5% |
8% |
No (remains 13%) |
|
Snowmobiles |
5% |
8% |
No (remains 13%) |
|
Recreational Vehicles |
5% |
8% |
No (remains 13%) |
|
Private Resale of Vehicles |
No GST |
8% |
Yes4
(changes to 13%) |
|
Gasoline/Diesel |
5% |
No RST |
Yes
(changes to 13%) |
| |
|
|
|
4 |
|
HST does not apply; however,
Ontario will maintain the RST on private transfers of used
vehicles at a rate of 13 per cent to help ensure a
level-playing feld between sales by dealerships and private
sales. |
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
change5 |
|
New Homes over $400,000 |
5% |
No
RST |
Yes5A |
|
Resale Homes |
No
GST |
No
RST |
No
HST |
|
Real Estate Commissions |
5% |
No
RST |
Yes (changes to 13%) |
| |
|
|
|
5 |
|
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. |
| |
|
|
|
5A |
|
New homes purchased as primary
residences, valued at $400,000 or more will be eligible for
the maximum new housing rebate of $24,000. |
|
HEALTH
PRODUCTS AND SERVICES: |
 |
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? |
|
Audiologist Services |
No GST |
No RST |
No HST if offered by a
practitioner of the
service. |
|
Chiropractor Services |
No GST |
No RST |
No HST if offered by a
practitioner of the
service. |
|
Physiotherapist Services |
No GST |
No RST |
No HST if offered by a
practitioner of the
service. |
|
Pharmacist Dispensing Fees |
No GST |
No RST |
No HST |
|
Over-the-Counter Medications |
5% |
8% |
No (remains 13%) |
|
Prescription Drugs |
No GST |
No RST |
No HST |
| Some Medical Devices
Includes walkers, hearing
aids |
No GST |
No RST |
No HST |
|
Prescription glasses/contact lenses |
No GST |
No RST |
No HST |
|
Feminine Hygiene Products |
5% |
No RST |
No (remains 5%) |
|
Adult
Incontinence Products |
No GST |
No RST |
No HST |
|
Diapers |
5% |
No RST |
No (remains 5%) |
|
Cosmetics |
5% |
8% |
No (remains 13%) |
| Hair
Care Products (e.g., Shampoo, Conditioner, Styling
Products) |
5% |
8% |
No (remains 13%) |
| Dental Hygiene Products
(e.g., Toothpaste,
Toothbrushes) |
5% |
8% |
No (remains 13%) |
|
Massage Therapy Services |
5% |
No RST |
Yes
(changes to 13%) |
|
Vitamins |
5% |
No RST |
Yes
(changes to 13%) |
|
MEMBERSHIPS,
ENTERTAINMENT AND SPORTS EQUIPMENT: |
 |
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? |
| Admissions to Professional Sporting Events |
5% |
10% |
Combined rate going down to 13% from current 15% |
|
Movie Tickets |
5% |
10% |
Combined rate going down to 13% from current 15% |
|
Music Lessons |
No GST |
No RST |
No HST |
|
Skis and Snowboards |
5% |
8% |
No (remains 13%) |
|
Hockey Equipment |
5% |
8% |
No (remains 13%) |
|
Golf Clubs |
5% |
8% |
No (remains 13%) |
|
Green Fees for Golf |
5% |
No RST |
Yes
(changes to 13%) |
|
Gym and
Athletic Membership Fees |
5% |
No RST |
Yes
(changes to 13%) |
|
Ballet,
Karaté, Trampoline, Hockey, Soccer
Lessons, etc. |
5% |
No RST |
Yes6
(changes to 13%) |
| Tickets
for Live Theatre with 3,200 Seats or Less |
5% |
No RST |
Yes7
(changes to 13%) |
|
|
|
|
|
6 |
|
HST taxable, although some could
be HST-exempt if provided by a public service body to children
14 and under and underprivileged
individuals with a disability. |
|
|
|
|
|
7 |
|
HST taxable, although some could
be exempt if maximum admission charged by a public service
body is $1 or less, if the admissions are made in the course
of the fundraising events where charitable receipts for income
tax purposes may be issued, or admissions are to amateur
performances. |
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 GST8 |
No
RST8 |
No
HST8 |
|
Residential Rents |
No GST |
No
RST |
No
HST |
|
Hockey Rink and Hall Rental Fees |
5% |
No
RST |
Yes (changes to 13%) |
|
|
|
|
|
8 |
|
Residential condo fees charged to
residents are exempt; however, purchases by condominium
corporations will be subject to HST, if applicable. |
ELECTRONICS:
 |
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? |
|
TVs |
5% |
8% |
No (remains 13%) |
| DVD and
Blu-ray Players and Accessories |
5% |
8% |
No (remains 13%) |
|
MP3 Players |
5% |
8% |
No (remains 13%) |
|
Cell Phones, Smart Phones |
5% |
8% |
No (remains 13%) |
|
Cell phone service |
5% |
8% |
No (remains 13%) |
|
CDs,
DVDs and Blu-ray discs |
5% |
8% |
No (remains 13%) |
PROFESSIONAL AND PERSONAL SERVICES:
Did You
Know?
Approximately 2.8 million
families and individuals would beneft from the
proposed Ontario Energy and
Property Tax Credit, which would provide over $1.2 billion
annually in energy and property tax relief.
 |
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? |
|
Child Care Services |
No GST |
No RST |
No HST
|
|
Legal Aid |
No GST |
No RST |
No HST
|
|
Coffns and Urns Purchased
Separately from a Package of Funeral Services |
5% |
8% |
No
(remains 13%) |
|
Fitness Trainer |
5% |
No RST |
Yes (changes to 13%) |
|
Hair Stylist/Barber |
5% |
No RST |
Yes (changes to 13%) |
Esthetician Services
(e.g. Manicures, Pedicures, Facials) |
5% |
No RST |
Yes (changes to 13%) |
|
Funeral Services |
5% |
No RST |
Yes (changes to 13%) |
|
Legal Fees |
5% |
No RST |
Yes (changes to 13%) |
TOBACCO:
 |
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? |
|
Cigarettes and Other Tobacco Purchases |
5% |
No RST |
Yes
(changes to 13%) |
|
Nicotine Replacement Products |
5% |
No RST |
Yes
(changes to 13%) |
BANKING AND INVESTMENTS:
Did You Know?
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 |
Still Have Questions?
To learn more
about the benefts 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.
Theresa Wever and the Money
Concepts Team.
Commissions, trailing commissions, management fee and expenses all
may be associated with mutual fund investments. Please read the
prospectus before investing. Mutual funds are not guaranteed,
their values change frequently and past performance may not be
repeated. |
