GST is a tax charged on most goods and services purchased in British Columbia. GST is charged on the gross sale price of the item or service before PST. A Business also gets to claim as input tax credit (“ITC”), the GST it pays out in operating its business. For example, GST paid on rent, computers, business cards, accounting fees, etc. are all refunded back to the business when it calculates its net GST owing to CRA every reporting period.
In British Columbia, a service business with total sales of $200,000 or less, inclusive of HST, qualifies to use the Quick Method of remitting HST to Canada Revenue Agency (CRA). In general, the Quick Method allows a business that provides taxable services to collect the 12% HST as required under the Excise Tax Act but remit a lower rate to CRA. The trade off is that the business is not entitled to claim Input Tax Credit (ITC) on its expenses when remitting the HST collected. However, the ... Read More
HST in British Columbia – General Comments HST is not a new tax that will make goods and services 12% more expensive. HST replaces the GST and the PST. Effective July 1, 2010, GST and PST no longer exist in the province of British Columbia and both have been replaced by the HST For example, if you purchased a pair of walking shoes for $100 on June 30, 2010, you would have paid $5 in GST and $7 in PST, the final cost coming to $112. If you purchased the same pair of shoes for $100 on July 1, ... Read More