HST Information

Effective July 1, 2010, the HST will be implemented in Ontario and will be administered by the Canada Revenue Agency (CRA). In general, the HST will follow the same rules as the Goods and Services Tax (GST).

It is our understanding that HST will generally apply to goods sold to the extent the goods are delivered and ownership is transferred on or after July 1, 2010. HST will generally apply to services performed on or after July 1, 2010 and RST would apply to services performed before July 1, 2010. The exception being, if substantially all (90% or more) of the service is performed before July, HST would generally not apply. It is our understanding that this would include real estate commissions where the purchase and sale agreement has been finalized before July 1, 2010. You may refer to this website for additional information on this topic.

For more detailed information about the HST contact the CRA at 1-800-959-5525 or visit their website at www.cra-arc.gc.ca/harmonization.