The Harmonized Sales Tax or HST is one of the two kinds of sales taxes in Canada, the other being Provincial Sales Tax.
HST is a value-added tax, which means that it functions on an input-and-output system. When you buy something, you pay the input tax, and if you sell something, you collect the output tax from the buyer. As a taxpayer, you must deduct input from output taxes and then remit the difference to the CRA. The HST tax rate in all provinces is 15%, except Ontario. In Ontario, the rate is 13%.
As with most tax-related matters, HST can become complicated for businesses, especially for self-employed individuals and small companies operating nationwide or across several provinces (online or otherwise). You have to manage and deal with inconsistencies in tax rates, whether your customer is based on a PST or HST province.
Sounds overwhelming? We have a tax accountant who is ready to take care of everything HST and assist you with other tax-related matters. Whether you’re preparing for tax season, grappling with self-employed tax, or needing guidance on filing a final tax return after death, our team at G&P Accounting Services will work closely with you and provide tailored solutions that can simplify the process and eliminate errors.