HST added to certificate services as of July 1, 2010
Posted on: Wednesday, June 9, 2010
The Harmonized Sales Tax (HST) applies to certificate services, and takes effect July 1, 2010. Please familiarize yourself with the following information on billing dates and HST.
- If the first date of service and the last date of service on a lawyer’s account is pre-July 1st, GST (5%) will apply.
- If the first date of service and the last date of service on a lawyer’s account is post-June 30th, HST (13%) will apply.
- If the first date of service and the last date of service on an account spans the transition period (e.g., June 26 to August 13) a GST/HST flag will appear Online. GST is applicable if 90% or more of the services billed were rendered before July 1st. In all other cases, HST is applicable.
- In order to comply with the GST/HST CRA Transition Rules, the Online flag will ask a lawyer whether 90% or more of the services were rendered before July 1st. If the answer is yes, GST will apply. If the answer is no, HST will apply. Lawyers must ensure that the selection is as accurate as possible; accounts may be subject to audit.
- To ensure the correct application of GST/HST to an account, in some circumstances a pop up message will appear notifying a lawyer that the system is modifying the account date.
- Services provided on reserves by panel members are HST exempt.
For further information
If you have any questions, or require further information, please contact:
Lawyer Service Centre
416-979-9934 or 1-866-979-9934
Monday to Friday 8:00 a.m. to 5:00 p.m. EST
For more information regarding HST, please consult the Canada Revnue Agency (CRA).