HST

Attended a seminar on the coming HST in Ontario yesterday. Had one question to find answer out and got it quite easily. I needed to know the answer, as I am relocating to a province that doesn't have a HST and sounds like it is in no hurry to get one. I run a small income tax preparation business and have clients in several provinces.

My new understanding is as a GST registrant, I will automatically be a HST registrant. I will have to collect HST if a client resides in (as of July 1, 2010) BC, Ontario, New Brunswick, Nova Scotia, and Newfoundland. If a client lives in Alberta, Saskatchewan, Manitoba, Quebec, or Prince Edward Island, or the territories I have to collect GST only.

My understanding is that the type of service I provide is not a taxable (provincially) service in the non-HST jurisdictions and even if it is, I am not obliged to collect it. Of course that could change if other provinces sign on to an HST type agreement with the federal government.

Elsewhere I have indicated my own views on the HST - a 'necessary evil' whose regressive impact needs to be 'cushioned' by credits/grants paid to low and moderate income earning individuals/families. I am also alarmed at the anti-tax coalition against the HST. I find the anti-tax coalitions are composed of unholy alliances made up of what are frankly 'opportunists'.