Hst

[Anynym]

Thanks for the link but we knew all that. And yes, the point about materials being used in the construction of the exhibit is RST exempt and we had the certificate for just that purpose.

One of the trick aspects of this is: construction and delivery of an exhibit, to a customer based in Ontario, but they take first delivery of it in the US. LOL. We did that many times and never really did figure it out.

Since you are exporting the finished goods, yes, you would not charge PST. But if your customer is importing the goods into Ontario and not paying sales tax (self-declared, on all imported goods) they could be subject to prosecution and penalties, putting them out of business.

And that sort of illegal tax evasion (in the scenario outlined) costs all taxpayers.

 

[tboy]

Since you are exporting the finished goods, yes, you would not charge PST. But if your customer is importing the goods into Ontario and not paying sales tax (self-declared, on all imported goods) they could be subject to prosecution and penalties, putting them out of business.

And that sort of illegal tax evasion (in the scenario outlined) costs all taxpayers.

Exactly. Which is why we (almost continuously) got into disagreements with our customers when they checked with their accounting people and their accounting people said "since you're taking delivery of the item out of country no pst is applicable". They never could understand that while the physical initial delivery was out of country, it was really sold to them in Canada and would come back here to be stored and prepped for the next show. In effect, since their final payment was received by us before it left the loading dock, they really took "ownership" of the exhibit here in Canada.

This was one of the questions that our controller called RevCan about and on 3 occasions, got different answers....

 

[guelph]

The PST was exempt previously (by companies filing a PST Exemption Certificate with their suppliers, or getting the PST refunded), for any business larger than a Hobby.

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This is not correct the end user paid PST on goods. I goods were bought for resale then they were exempt, but if a business bought something to use in the business -- office supplies, furniture, computers, cars, trucks etc

They paid the PST making it more expensive to do business

Under HST businesses will be getting a refund of the taxes paid on these item through input tax credits

 

[Cobra Enorme]

hst doesnt mean shit of a difference. take off your foil hats.