GST Reduction July 1, 2006

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Just a reminder … GST/HST Info Sheet about the Reduction of GST/HST ..

For those of you who will not be hiring technical support to change the rates in your Cash Registers .. you only have 35 days left to learn how to do it! So, you may as well start looking for those manuals soon!

The General Transition Rule states on Page 1:

Generally, the new rates of tax apply to the supply of taxable (other than zero rated) goods and services in the following circumstances:

* If the GST/HST becomes payable on or after July 1, 2006, without having been paid before that day, the rate of 6% GST or 14% HST will apply.

* If the GST/HST is paid on or after July 1, 2006, without having become payable before that day, the rate of 6% GST or 14% HST will apply.

If the GST/HST becomes payable or is paid without having becoming payable before July 1, 2006, the rate of 7% GST or 15% HST will continue to apply.

Did You Get That?

* Plain and simple Plan: Invoice After June 30th, 2006 ==> add 6% GST

* Not So Plain and Simple Plan: Yes .. there are situations where you may invoice after June 30th but include rates at 7% GST and there are unique situations involving deposits .. but, the bottom line is that if you are not 100% sure what to do … give your accountant a phone call and ask. If you are worried about being charged, call Canada Revenue business number .. 1-800-959-5525

* The Mary Hartman! Mary Hartman! Version: You have to pretend that I’m talking like Randy, brother to Earl (My Name is Earl) .. you see you should charge 6% GST after June 30th, 2006, unless it’s before July 1st, 2006 where you should charge 7% GST .. but then again if it’s after July 1st, 2006 don’t charge 7% GST because you are only supposed to charge that before June 30th, 2006 unless it’s not before June 30th, 2006 and it’s really on or after July 1st, 2006 where you should be charging onlhy 6% GST. Of course, if you don’t charge charge GST at all and are charging HST, then you should charge 14% HST after June 30th, 2006, unless it’s before July 1st, 2006 where you should charge 15% HST .. but then again if it’s after July 1st, 2006 don’t charge 15% HST because you are only supposed to charge that before June 30th, 2006 unless it’s not before June 30th, 2006 and it’s really on or after July 1st, 2006 where you should be charging onlhy 14% HST ..

Yes .. and my head hurts too!

UPDATE #1
Further on this topic: Recommended Readings …

BDO Dunwoody Fast Facts
Canada Revenue Agency – Questions and Answers

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