As of April 2013, the 5% Federal GST and 7% provincial PST are collected separately.

The former HST used a value-added tax structure that allowed most businesses to claim input tax credits (ITC) on the 12% HST paid. This was unlike the PST which applies to many purchases made by a business and is not refunded, leaving the PST embedded in the price of the finished goods and services as a cost to the business. One of the purposes of the HST was to take away the hidden tax as well as lower administrative costs incurred by businesses.

In controlling related costs we can assist your company in the compilation of information and preparation of government agencies' tax returns such as PST and GST.

As always, it is up to you to decide to do the work the easy way or the hard way. In any case, we are always available to answer your questions. Feel free to contact me.