Julianna
In two weeks time the harmonized sales tax (HST) will replace the existing provincial sales taxes (PST) and the federal goods and services tax (GST) in the province of British Columbia.
As you know, Webnames.ca is located in Vancouver; this means that BC’s adoption of the HST will impact you, our customers.
What Does the HST Mean for Webnames.ca Customers?
The HST will be applied on all Webnames.ca services at a rate of 12%, consisting of the 5% federal portion and a 7% provincial portion, beginning Thursday, July 1, 2010.
Hosting, Web Builder, Email
Because Hosting, Web Builder and Email are already subject to 12% taxes due to the nature of these services, there will be no changes to your invoices or receipts for these items.
Domain Registrations, Domain Renewals, SSL Certificates
Domain registrations, renewals, SSL certificates and special program fees will become subject to HST as of July 1, 2010. This means your invoices and/or bills for these items will increase by 7% for a total of 12% taxes above the retail price.
* Customers who wish to purchase or renew domain or SSL services before July 1, 2010 will realize a savings of 7%.
Webnames.ca invoices and receipts have been updated to show the HST and will take effect July 1, 2010.
Claiming the HST as a Business
While it is hard to get excited about a new tax, the HST does have advantages for businesses. The move to HST now means that businesses can claim 12% taxes, an increase of 7% over the GST.
As with the GST, if you are operating a Canadian business you can claim back the HST you’ve paid out during a particular reporting period by claiming it through Input Tax Credits (ITCs) on your HST return.
Additional HST Information and Resources
For general HST information, including how to apply for an HST account and HST credits/rebates, we recommend visiting Canada Revenue Agency’s GST/HST Topics page and the “Information for Consumers” section of the HST for British Columbia page.
Outside of the CRA, About.com’s Small Business Canada portal is the most comprehensive resource for information on all things HST, including information specific to BC and Ontario. If you have additional HST questions, you will be able to find answers here.