Would you explain B.C.'s PST and HST to me
Feb 17, 2012, 4:40 pm
#1
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Would you explain B.C.'s PST and HST to me
Very confusing. Here's what I think I know. Before there was HST. Soon, there will be PST and GST, no HST because of a referendum last year.
What's the difference between PST and HST?
Is one not charged for restaurants?
HST not charged for building materials but for labour???
PST charged for building materials only???
What kind of consumer would be in favor of HST?
What kind of consumer would be in favor of GST and PST?
All this is confusing.
What's the difference between PST and HST?
Is one not charged for restaurants?
HST not charged for building materials but for labour???
PST charged for building materials only???
What kind of consumer would be in favor of HST?
What kind of consumer would be in favor of GST and PST?
All this is confusing.
Feb 17, 2012, 8:45 pm
#2
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For items requiring PST (7%) and GST (5%), there is no difference with HST (12%).
In restos, you will just be charged GST. As for all your other Q's, I'm too lazy to answer them.
Not sure why it's confusing as all other Provinces (except AB) had a GST/PST set-up before some of them went HST.
In restos, you will just be charged GST. As for all your other Q's, I'm too lazy to answer them.
Not sure why it's confusing as all other Provinces (except AB) had a GST/PST set-up before some of them went HST.
Feb 18, 2012, 2:24 am
#3
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I'll take a quick stab at it but I'm no accountant; just a lay person.
What's the difference between PST and HST?
Originally in BC, the provincially administered 7% sales tax (PST) was applied separately from the federally administered 5% good and services tax (GST). As they were administered separately, the range of what was taxed was different, with the GST generally encompassing more stuff as it covered services as well as goods.
When the feds struck a deal with the provincial govt to harmonize the two taxes, the combined 12% tax became known as the HST. The tax essentially combined the two tax rates and followed the GST's tax scheme.
Due to the referendum, the BC govt is reverting back to the old PST and GST scheme.
Is one not charged for restaurants?
The PST was not applied to restaurant meals, though there was a special provincial liquor tax.
The GST did apply to restaurant meals and now the HST applies to restaurant meals.
Diners with the HST "lose" on their meals because they are now paying 12% versus 0%+5%.
Drinkers with the HST "win on their drinks because the 12% is less than the combined provincial liquor tax (I forget how much it was but it was over 7%) and GST.
I could be wrong here on these next points but...
HST not charged for building materials but for labour???
The HST is charged for building material but if you're a manufacturer using that material for a final product that you'll be selling, you'd get a HST rebate or credit.
PST charged for building materials only???
The PST was charged against the sale of most products, regardless of where it is in the manufacturing stream and generally not for services.
I think a good read is to understand the difference between a sales tax (which the PST was) and a value added tax (which the GST/HST is).
What kind of consumer would be in favor of HST?
Well in theory, everyone since prices are supposed to go down overall because the costs of the manufacturers are supposed to go down and they should be passing those savings onto the end consumers. In reality, I suspect consumers probably wouldn't see the net effect for a number of years as manufacturers likely initially take the savings as profit.
What kind of consumer would be in favor of GST and PST?
I'd say anyone that is normally buying stuff that wasn't PST taxable like junk food, restaurant meals, bicycles, etc. The provincial government set its own tax policies and exempted a number of items.
What's the difference between PST and HST?
Originally in BC, the provincially administered 7% sales tax (PST) was applied separately from the federally administered 5% good and services tax (GST). As they were administered separately, the range of what was taxed was different, with the GST generally encompassing more stuff as it covered services as well as goods.
When the feds struck a deal with the provincial govt to harmonize the two taxes, the combined 12% tax became known as the HST. The tax essentially combined the two tax rates and followed the GST's tax scheme.
Due to the referendum, the BC govt is reverting back to the old PST and GST scheme.
Is one not charged for restaurants?
The PST was not applied to restaurant meals, though there was a special provincial liquor tax.
The GST did apply to restaurant meals and now the HST applies to restaurant meals.
Diners with the HST "lose" on their meals because they are now paying 12% versus 0%+5%.
Drinkers with the HST "win on their drinks because the 12% is less than the combined provincial liquor tax (I forget how much it was but it was over 7%) and GST.
I could be wrong here on these next points but...
HST not charged for building materials but for labour???
The HST is charged for building material but if you're a manufacturer using that material for a final product that you'll be selling, you'd get a HST rebate or credit.
PST charged for building materials only???
The PST was charged against the sale of most products, regardless of where it is in the manufacturing stream and generally not for services.
I think a good read is to understand the difference between a sales tax (which the PST was) and a value added tax (which the GST/HST is).
What kind of consumer would be in favor of HST?
Well in theory, everyone since prices are supposed to go down overall because the costs of the manufacturers are supposed to go down and they should be passing those savings onto the end consumers. In reality, I suspect consumers probably wouldn't see the net effect for a number of years as manufacturers likely initially take the savings as profit.
What kind of consumer would be in favor of GST and PST?
I'd say anyone that is normally buying stuff that wasn't PST taxable like junk food, restaurant meals, bicycles, etc. The provincial government set its own tax policies and exempted a number of items.
Feb 18, 2012, 1:31 pm
#4
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I heard that GST+PST in BC is going to affect the housing market now that HST is ending. I forgot why.
Maybe it is because GST+PST on new construction is lower than HST? Something is different. The change from HST to GST + PST was reported to cause people to delay plans until HST was fully dead.
Maybe it is because GST+PST on new construction is lower than HST? Something is different. The change from HST to GST + PST was reported to cause people to delay plans until HST was fully dead.
Feb 18, 2012, 5:15 pm
#5
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New houses only required GST. With HST, you're paying an extra 7% - which comes out to be big $$ when you're buying a $1M home (avg price of home in Vancouver).
And, most industry association support the HST (even if they were against it in the beginning). The reduction in paperwork and the easier ability to credits are cited to be the biggest benefits.
And, most industry association support the HST (even if they were against it in the beginning). The reduction in paperwork and the easier ability to credits are cited to be the biggest benefits.
Feb 19, 2012, 8:43 am
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My boss did like getting CC points on HST that he paid for his business, and then got credited back by the government.
Feb 19, 2012, 8:17 pm
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Feb 21, 2012, 11:37 am
#8
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Nice to see a Tax roll back....."Finance Minister Kevin Falcon recently announced that April 1, 2013, would be the day the province returns to the provincial sales tax system"....unfortunately Ontario voters don't have the stones to do the same. The HST kills consumer spending and feeds the cash-no reciept economy.
Feb 21, 2012, 11:40 am
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Feb 27, 2012, 4:52 pm
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If my boss was using a cashback card then absolutely, it would be taxable. But he uses the RBC Visa Infinite (not the Avion, but the one that costs $599)