FBC UPFRONT » Happenings
THE
HST
A new tax threatens
our industry in already
challenging times.
BY DON LONGWELL
tax (HST) across the country when attendance at a major budgetary session where Minister Flaherty announced that the HST would eventually be applied to provinces and territories which did not currently have the tax. The HST is a single tax which com-
F
bines both the goods and services tax (GST) and the provincial service tax
12 Fitness Business Canada July/August 2009
itness Business Canada fi rst re- ported on Finance Minister Jim Flaherty’s intentions to imple-
currently being charged on services such will be charged. The HST has been in place in
separate agreement with the federal gov- ernment and administers it provincially. The Canada Revenue Agency (CRA) ad- ministers the HST on behalf of all prov- Ontario made radical changes to its
tax structure in its 2009 provincial bud- get. Included in the budget is a shift from which combines the 5% GST and existing
After the three maritime HST provinc-
es, Ontario would be the fourth province to implement the HST. For fi tness businesses in provinces cur-
rently charging GST only, this means a change in tax procedures. No longer will personal training and gym membership
THE GOOD
Input tax credits for the full HST can be
claimed on HST-taxable supplies through the GST system – a cost saving because pro- vincial sales tax is largely unrecoverable. An HST registrant is entitled to an in- put tax credit equal to the amount of tax
AND FITNESS FACILITIES
Provincial GST/HST/PST % Rates
Province
GST/HST Rate (%)
Alberta 5
British Columbia 5 Manitoba
5
New Brunswick 13 13
Newfoundland & Labrador
Northwest Territories
Nova Scotia Nunavut Ontario
Prince Edward Island
Quebec
Saskatchewan Yukon Territory
5
13 5 5
5 5
5 5
PST Rate (%)
no PST 5 7 7
12 12
no PST 13 no PST 13
no PST 5 no PST 13
no PST 5 8
10 * 7.5 *
5 13 15.5 *
12.875 * 10
no PST 5
* The GST is included in the provincial sales tax in Quebec and Prince Edward Island. PST is charged on GST, hence the higher combined rate.
Combined Rate (%)
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