HST Defeated in BC

BC announced on August 26, it will reinstate the combined 12 per cent PST and GST tax system after its citizens voted to cancel the HST. An 18-month action plan was outlined for the transition process from HST to PST at 7%. The HST will remain in effect during that time, and the 5% GST system will also remain.

Some of the transitional rules of note in the background information released include:

• The return of the funding received from the federal government for adopting the HST.
• Provincial PST transition rules to mirror federal HST transition rules will be developed.
• The provincial government will register approximately 100,000 businesses as tax collectors before the PST is re-implemented and provide information and training on the tax application, collection, compliance and reporting rules related to the PST. By the time the PST is re-implemented, there will be an estimated 30,000 new businesses in B.C. with no PST experience. These businesses will need to be registered and provided with detailed information and training to enable them to comply with the tax law.
• Businesses will need to change their own electronic and manual systems and processes to assess, collect, report and remit the PST and other related taxes to the provincial government.

For more information see: http://www.hstinbc.ca/moving-forward/

ADDITIONAL EDUCATION RESOURCE; Evergreen Explanatory Notes, Advanced Bookkeeping for Selected Business Profiles