The new HST is being implemented on July 1st 2010. The HST (Harmonized Sales Tax) is a value added sales tax that combines PST and GST in a given province. Starting July 1st, 2020, UNiTE is required to collect the federally administered HST for customers located in HST enable provinces.Â
Business Clients who currently pay PST on Unite’s services in Ontario will actually realize an 8% decrease in the cost of their services. Previously the PST was paid by the client and not recoverable, however, because HST is a “flow through” tax, just like GST, HST paid is deducted from HST collected, and therefore it is not an expense. Therefore companies in HST regions will realize a price reduction equal to that of the current PST. Provinces without HST will be charged the same total amount of taxes they are currently charges and will therefore see no increase for the cost of services.
