On April 1, 2013, British Columbia (BC) and Prince Edward Island (PEI) are implementing changes to the GST/HST.
British Columbia Tax Changes
- Elimination of current HST (12%).
- Return to PST (7%) and GST (5%).
Contracts that are currently charged BC HST will be subject to GST only. Any invoices/statements prepared on or after April 1st will be subject to GST only.
Prince Edward Island Tax Changes
- Introduction of HST (14%) where provincial portion is 9% and GST portion is 5%.
Contracts currently charged GST and the governing law provision in the contract is PEI, will be subject to HST at 14%. Any invoices/statements prepared on or after April 1st will be subject to HST.
Source: SunLife Focus update #383 – February 28, 2013.
For further information, please contact ENCOMPASS.
