HST - Frequently Asked Questions
There are many different types of business operations and processes within Western and specific application of the HST rules and requirements can be very detailed, depending on the nature of your business. Please direct specific inquiries to hst@uwo.ca and we will then either answer the query, or direct you to where the query is already answered (such as the Canadian Revenue Agency Frequently asked questions area).
The following questions have been collected from various members of the campus community.
• What are the HST rebate amounts for Universities?
• I charge tax on goods and services using third-party software systems. What do I need to do?
• I manage Research Accounts. What impact will HST have on these accounts?
Q - What are the HST rebate amounts for Universities?
A - HST is charged at 13%. The rebates are: 67% of the 5 % GST portion, and 78% of the 8% PST portion of the HST, for a combined net rebate of 73.77% on 13%.
Q - I charge tax on goods and services using third-party software systems. What do I need to do?
A - Please contact your software vendor and determine if they are aware of the (Ontario) HST implementation for July 1, 2010 and ensure their system is capable of handling the changes. Please cc hst@uwo.ca on this correspondence.
Q - I currently issue invoices for items that are GST applicable. What tax rate should I use on future invoices?
A - HST becomes applicable on July 1, 2010. If you are selling goods and services that will not be delivered until after July 1, HST at 13% will be applicable and must show on invoices issued after May 1. The CRA has also confirmed that HST should be shown as a single line item on receipts. The Ontario Ministry of Revenue recently released a Tax Tip – Preparing for Ontario’s HST: #2 Invoicing Requirements, which explains that the HST amount shown on an invoice should follow the existing GST/HST rules.
Q - I currently pay GST only on Goods and Services. What tax rate can I expect to pay after the HST is implemented on July 1, 2010?
A - Gas and Utilities and Professional Services will now have an 8% Ontario portion of HST applied, so the tax charged will be 13% instead of 5%. After rebates, the net tax cost will be 3.41% instead of 1.65%
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Q - I currently pay both GST and PST on Goods and Services. What will the tax rate be after HST is implemented?
A - When HST is implemented for Goods and services received after July 1, there will be a rebate on both the GST and PST portions of the HST. Currently there is no rebate on PST, so you may wish to consider holding off on purchasing such items until after July 1, 2010, as they will effectively be cheaper at that time. (Current net tax cost = 9.65% versus new net tax cost = 3.41%)
Q - I manage Research Accounts. What impact will HST have on these accounts?
A - Effective July 1, 2010, HST will apply to all research equipment purchases. With the new rebates for universities, this 13% tax will be reduced to an effective rate of 3.41% (up from 1.65% for current ORST exempt research goods). Please budget accordingly.
Q - I sell subscription services and/or advertising for inclusion in printed materials, journals, etc. What do I need to do?
A - Please email hst@uwo.ca with Subject Line: Subscriptions and printed materials, as there are very specific rules that apply to your business. Electronic journals and eBooks are not specifically identified within the GST/HST documentation and the rebate for printed books, as further outlined in GST/HST Memoranda Series 13.4, only makes reference to books in a tangible form.
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Q - I am currently taking payments or have paid for goods and services which are not received until after July 1,st 2010. What do I need to do?
A - Please email hst@uwo.ca with Subject Line: Prepaid goods and services
Also from this web page:
Questions?
Email: hst@uwo.ca
Communication
Western HST Bulletins
General Impact of HST (PDF, 106KB)
Research Funded Purchases (PDF, 90KB)
Presentations
HST and Western Purchasing - March 1, 2010 (PDF, 1.7MB)
HST and Western Administrative Officers - February 24, 2010 (PDF, 537KB)
HST and Western Ancillary Operations - February 3, 2010 (PDF, 676KB)
HST - Getting Ready! Issues for The University of Western Ontario - January 26, 2010 (PDF, 315KB)
HST - Getting Ready! Issues for The University of Western Ontario - December 22, 2009 (PDF, 389KB)
FAQ
Specific application of the HST rules and requirements can be very detailed, depending on the nature of your business... [Learn more]
Resources
Tax status chart (PDF, 147KB)
