HST transition period begins Saturday
Posted April 29, 2010 9:00 am.
This article is more than 5 years old.
TORONTO, Ont. – For those who think they have until July 1 to beat the Harmonized Sales Tax, they are mistaken.
A month before the new HST transition cheques go in the mail, people could find themselves paying the new tax.
Even though the HST doesn’t take affect until July 1, any services people will be using as of that day will be subject to the new tax as of Saturday, May 1 — the start of the HST transition period.
The transition period was announced by the government when the HST legislation was passed, but many people have forgotten about it or were not aware.
What that means is that starting Saturday and over the next two months, people will pay the full 13 per cent tax on things used after July 1.
For example, those booking a flight or hotel in Canada for a holiday after July 1, they will be taxed at 13 per cent from Saturday onwards.
This also applies to other purchases, such as theatre tickets for a performance after July 1, contracts for services, magazine subscriptions and gym memberships, etc.
Those who make the purchases before Saturday, they will still only pay the five per cent GST.
However, the HST transition period does not apply to funeral plans.
