HST and Porsche imports from U.S.
#1
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Does anyone know if the HST will change the way GST and PST are collected on Porsches we import from the U.S.? In B.C. we currently pay 5% GST and 6.1% duty when you bring the car over the border, and 7% PST when you actually register the car. After July 1, would the GST go from 5% to the 12% HST? In B.C. the plan is to also increase the PST from 7% to 12% on July 1 on all registrations so the sales through private parties are the same as through dealers. Could we be facing 12% at the border, and 12% at registration?
My guess is that somehow the GST at importation remains at 5%, with some sort of credit against the 12% PST when you go to register, but I'd like to confirm this, and how it actually works. The maritimes have had the HST for a few years, so hopefully this has come up in the past. Can anyone offer any input?
My guess is that somehow the GST at importation remains at 5%, with some sort of credit against the 12% PST when you go to register, but I'd like to confirm this, and how it actually works. The maritimes have had the HST for a few years, so hopefully this has come up in the past. Can anyone offer any input?
#2
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there is no reason why you would pay more tax after HST, since you are already paying both taxes when importing (pst and gst) (unless you live in Alberta and then you just have to face cold weather).
Do you think the Province can justify charging twice for the same tax?????
what are you importing?
Do you think the Province can justify charging twice for the same tax?????
what are you importing?
#3
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I bet there isnt one Revenue Canada employee who can answer any HST questions right now. Everyone is really confused as to how HST will affect many different businesses. We are a few months away and our government has not made any efforts to educate us. Typical, though.
#4
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I get reports from my accountant and everything seems very clear.
anything delivered after July 1 gets hst. what is so confusing?
this HST is a really bad idea.
anything delivered after July 1 gets hst. what is so confusing?
this HST is a really bad idea.
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The uncertainty mainly has to do with the items/services that where previously PST and/or GST exempt. Like some medical devices, for example. Untill now, I have only paid GST to my wholesale suppliers/providers and did not charge the end user any taxes, since these items/services used to be exempt from taxes. I would then claim the GST back. Now, my accountant still can not explain to me how the "circle" of taxes would work with the new HST in place. Will I now have to pay HST to my wholesalers on everything? Do I add HST to the patient"s bill? Can I claim HST back? In full (13%) or just the GST part of it?
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#8
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My understanding of HST is that if you are a business, then you will be able to claim the entire HST as an input credit. Meaning you can 'write off' the GST and PST as before you were only able to claim back the GST portion. So businesses benefit, but the consumer pays more. Ultimately, the consumer has less money to spend... Driving the underground economy...
#9
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Tenzin is right - business can claim HST input credits on anything they would have previously paid GST on, including things they paid PST on. So now when my business pays my cell phone bill of $100, instead of paying out $113 and getting $5 of it back as a GST input credit, with $8 of it lost to PST, we can now claim back the entire $13. With PST-paid expenses of over $30K a year, this represents a pretty nice savings to my company. And considering much of that is things that we might pay out of pocket if I weren't self-employed, it's a personal bonus as well.
But for the average consumer, it sucks big hairy donkey *****. It's a stupid idea in hard economic times. Particularly for new home sales. One level of gov't introduces a tax credit because they know the building/reno industry is hurting badly, another level of gov't introduces a massive new tax on it because... well, I'm lost there. I'm no fan of Harper whatsoever, but McGuinty is outshining him in stupidity really fast.
BTW, there's tons of info at the Ministry of Finance website.
http://www.rev.gov.on.ca/en/taxchange/index.html
But for the average consumer, it sucks big hairy donkey *****. It's a stupid idea in hard economic times. Particularly for new home sales. One level of gov't introduces a tax credit because they know the building/reno industry is hurting badly, another level of gov't introduces a massive new tax on it because... well, I'm lost there. I'm no fan of Harper whatsoever, but McGuinty is outshining him in stupidity really fast.
BTW, there's tons of info at the Ministry of Finance website.
http://www.rev.gov.on.ca/en/taxchange/index.html
#11
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