News for GST/HST Registrants

On October 19, 2010, CRA released the updated RC4022, "General Information for GST/HST Registrants, which provides information on several new developments on the GST/HST front. Advisors and their clients have been working through the introduction of the HST in BC, ON and Nova Scotia, on July 1, 2010. For the Province of Ontario the HST combines the retail sales rate (8%) with the G.S.T. (5%) for a combined HST of 13%. In British Columbia the retail sales tax (7%) harmonized with the GST (5%) for an HST of 12%. Nova Scotia increased its HST from 13% to 15% on July 1^st combining a 10% provincial sales tax with the 5% GST. Of note in the news:

• Electronic filing of GST/HST returns will be mandatory for most registrants and this document outlines several options for this. As of April 12, 2010, four-digit access codes will be assigned by CRA for all GST/HST registrants for e-filing purposes. Penalties will apply if you are required to file electronically and you fail to do so.
• The "place of supplyî rules determine whether suppliers must charge GST/HST. New rules as of May 1, 2010, use the location of the consumer of the supply rather than the location of the supplier. For example, if a resident of Nova Scotia purchases and receives delivery of an item from Ontario he will pay 15% HST. A resident of British Columbia purchasing the same product would pay 12%.
• There are new rules for financial institutions and simplified reporting for network sellers (direct sales).
• CRA now offers an installment calculator for businesses that can be accessed under "My Business Accountî www.cra.gc.ca/mybusinessaccount
• To view RC4022 in its entirety you can visit: http://www.cra-arc.gc.ca/E/pub/gp/rc4022/README.html

These changes will be discussed in detail at the Distinguished Advisor Workshops, one day CE workshops featuring November Year End Planning Strategies for business owners, coming to Winnipeg, Calgary, Vancouver, Toronto and Ottawa, November 3 to 9 . To register Click here