FlyerTalk Forums - View Single Post - Will residents of ON and BC buy flight passes before July 1, before HST is charged?
Old Feb 10, 2010 | 9:15 pm
  #9  
KathrynInCanada
 
Join Date: Aug 2006
Location: YOW
Programs: Aeroplan
Posts: 968
Originally Posted by RSWillson
If you file GST reports already, the HST change may only affect you on a short term basis. For our business, it is potentially positive, as I currently have to pay PST but it's simply a cost. Now I will be able to use the PST component as a credit.

Still waiting to see what the net affect is, but it should be neutral to positive.
Thanks for that point of view. Yes, we file for GST and since we do 90% of our business outside Canada, we almost always have a rebate.

So I guess it won't be as bad as I thought. I'm just focused on the money going out since 2009 had such a small amount coming in but the expenses didn't go down proportionally. Things are just starting to pick up but then I was seeing our costs go up by another 8% (after salaries, flights are the next greatest expense, then other travel expenses and then insurance.) The GST on most of our flights is only 50 cents since they are international, so the tax on flights won't be going up 8% and the other travel expenses are all outside Canada so exempt. I'm probably over-reacting.
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