BC and Ontario: Getting Ready for the HST,Posted: April 14, 2010
A quick post on how to make sure you are prepared for the changes from Provincial Sales Tax (PST) in Ontario and British Columbia when invoicing your clients:
The change over to HST, takes place on July 1, 2010 (though there is a transitional period you should be aware of). You can find more info on the transition here: http://www.cra-arc.gc.ca/gncy/hrmnztn…
To prepare for the change in myTooq.com is pretty simple. All you need to do is add a sales tax for the provincial portion of the HST (7% in BC and 8% in Ontario) and then create a new sales tax rule that uses this new sales tax and your existing GST.
If you have invoices that the transitional rules apply, but they are the exception not the norm, you can update the sales tax rule that is applied to the item or service as you add it to the invoice.
And while I don’t expect it will be required very often, you can see on this simple test invoice that Tooq can track the HST, GST and PST on the invoice very easily.
I will note, that if you prefer to have the HST displayed as an all-in-one tax, you can create a new sales tax with combined rate and a new rule that uses the single sales tax. While I don’t suspect that there will be any issues with using a single sales tax and rate for HST, the government has been known to pull the unexpected in the past.
When the change over to HST is complete, you can then update the default sales tax rules on your items and clients to use the HST rules moving forward and your transactions will use the applied rule each time.
I hope this has been helpful. Be sure to touch base with your accountant or bookkeeper about the transitional rules if you are unclear and let me know if you have any questions about how Tooq will handle the HST.
All the best!