On March 26, 2009, Ontario Finance Minister, Dwight Duncan announced that, starting July 1, 2010, Ontario would harmonize its provincial retail sales tax with the federal goods and services tax (“GST”). On July 23, 2009 Premier Gordon Campbell announced that B.C. would also be harmonizing its provincial sales tax on July 1, 2010. In Ontario, the Harmonized Sales Tax (“HST”) rate will be 13%, the current 5% federal GST, plus the new 8% provincial tax (“OVAT”). In B.C. the HST rate will be 12%, the GST at 5% plus the new 7% B.C. tax. In both provinces the new provincial portion of the HST is the same as the current rate of provincial sale tax (“PST”).

type Tax Law Bulletin – August 2009 – HST on the Home Front: Ontario and British Columbia