HST charged later

[spacyfoil]

Okay guys, I am only talking about eight dollars here. So no big deal.

But man am I pissed

See I got this Fitness membership from Mississauga on June 30.
The desk clark specifically told me NO HST since it was suppose to take into effect July 1st.

Well, I signed up, got the contract, have been working out (I look good btw

So today I got this letter from City of Mississauga that I owe the PST part ?? WTF ???

Trick or Trick ?? I did look around private gyms, and everyone was telling me sign now
and I would not have to pay HST.

My point is, in my case its only $8. But if anyone of you guys have purchased any services
commencing July 1st and were not charged PST...........Well be ready.

 

[Cassini]

Was PST ever charged for fitness memberships? I don't think so.

On the other hand, HST applies to everything including services to take effect in July, even if they were purchased in advance.

Make sure this is not a scam.

 

[spacyfoil]

No scam, just a trick to pay later.

The letter I got has my correct name, Client Barcode.

It quotes the correct amount I have paid. Plus it notes that amount included GST.

Then says I owe additional...........Please go to

www.connect2rec.ca which is Mississauga online.

So no scam. I'll scan and post if that'll help.

 

[Another_Mod]

As with any tax, there's tons of rules with respect to HST.
Basically its when the service is provided, not when payment is/was made.
In this case, the service that is provided after June 30th is subject to HST.

 

[thompo69]

What happened is the clerk either lied to you to close the sale or was too stupid to know that HST did apply. Where services are received after July 1st, you pay HST for the portion of the service received after that date, unless you paid for the services prior to May 1.

 

[CapitalGuy]

Stand up for it. Don't pay. Canadians always just bend over - don't do it this time. Its low risk - for $8 they aren't going to take you to court or send it to a collection agency. Just ignore the letter and see what happens.

 

[1HandInMyPocket]

I would pay it, but go back to your gym and see if they can deduct $8 from you next month's membership.

 

[Keebler Elf]

Were they telling you that you would never have to pay the HST or were you paying a year upfront or what? I'd be surprised if a gym was charging you a monthly fee and not charging you the HST. There's no way the government won't be coming after the HST for any fees post-July 1, 2010.

 

[spacyfoil]

 

[spacyfoil]

Were they telling you that you would never have to pay the HST or were you paying a year upfront or what?

Yes and Yes. This is a three month summer special. Not a long term (1-3) year contract. Once three months are over, I am done.

I'd be surprised if a gym was charging you a monthly fee and not charging you the HST.

Not making it up, see my letter above.

I have taken my name and address out of course.

 

[spacyfoil]

As with any tax, there's tons of rules with respect to HST.
Basically its when the service is provided, not when payment is/was made.
In this case, the service that is provided after June 30th is subject to HST.

Agreed. Just as my letter states.

But at the time of my signing the Clerk mislead me.

I am okay, will pay tomorrow. Just be aware, this could happen to anyone.
Maybe a bigger amount.

 

[i am one]

Where services are received after July 1st, you pay HST for the portion of the service received after that date, unless you paid for the services prior to May 1.

This is true.

I don't think the clerk misled you, but more that during the HST transition period there wasn't much information and a lot of companies were confused. Thus front line staff didn't have all the information they needed either to inform customers.

Anyways, the bottom line is that even if you had prepaid for the entire summer, any services consumed on and/or after July 1, 2010 are subject to HST. The only way you could've avoided this is if you had prepaid before May 1, 2010. May 1 to June 30 was the transition period where the public was being informed about what had HST and what didn't. The HST transition actually followed the Generally Accepted Accounting Principles. What's important is the time of usage of services regardless of if or when you had prepaid the entire amount -- and in this case it's July to September.

The most glaring issue during the HST transition was that companies weren't allowed to collect the HST before July 1, 2010 even for services that they knew would be used after HST was in effect. Thus companies were only allowed to charge GST and/or PST until June 30, and then collect the rest the next day.

So what the City of Mississauga and pretty much every other services company out there did was correct, but that doesn't mean that it isn't a huge hassle for everyone.

 

[Moraff]

Stand up for it. Don't pay. Canadians always just bend over - don't do it this time. Its low risk - for $8 they aren't going to take you to court or send it to a collection agency. Just ignore the letter and see what happens.

Since CRA is looking after the HST program I'm thinking what will happen is that there will be an offset put on his T1 account for the $8 and if not paid will be collected the next time there are setoffable credits posted to his account - ie T1 refund, GST/HST credit, OSTC credit.....

 

[Cobster]

I'm sure you spent $8 on more frivolous crap - ie cigarettes, overpriced drink at a bar.
Pay up and to relieve some stress, hit the gym doood.

 

[Mister K]

I had something like this happen when GST was introduced. I had purchased a mailbox from Canada Post, paying a year in advance. I was out of the country for five months when the GST was introduced, and on returning I found a notice from Canada Post to pay an additonal 7% per month dating back to the start of the tax. I spoke to someone within the post office location where my box was located and told him I wasn't going to pay for something retroactively. I told him that Canada Post could pay the tax, but they weren't going to get a dime from me. He nodded, took the notice and I never heard another word about it.