Like it or not HST is going to increase the sales tax on many goods and services in Ontario. While the ongoing HST debate is often centered on the addition of taxes, the increase is just part of the HST landscape.
The Ontario Ministry of Revenue has claimed that 83% of consumer purchases will not receive an increase in sales tax. That means there will not be a tax increase on most purchases made in Ontario.
It also means, for the most part, sales tax will remain the same on many purchases. If HST does remove the hidden costs of PST, as claimed, then the price of these ‘no change’ items could be eventually be reduced.
HST Ontario has put together a list of purchases that will not see a tax increase. The majority of the goods and services listed are presently taxed GST & PST at a combined rate of 13%. On July 1st 2010 most of these items will be taxed HST at that original tax rate.
No Change Items
Food and Beverage
- Snack food (junk food etc.)
- Dinning out food (Over $4.00)
- Fast food (qualifying foods under $4.00, HST exempt at 5%)
- Basic groceries (meat, canned food, vegetables etc.) – No tax
Clothing
- Alterations / tailoring / shoe repair
- Clothing for adults
- Children’s clothing (HST exempt at 5%)
Household
- Cable / mobile / home phone services
- Home repair services (appliance repair)
- Cleaning / laundry products
- Computer software
- Some home appliances (refrigerators, freezers)
- Home / patio furniture
- Magazines / newspapers (only purchased at retail locations)
- Toys / outdoor play equipment
- BBQ equipment
- Lawnmowers / landscaping tools / tools
- Televisions
- DVD / Bluray / MP3 players
- DVD / Bluray / CD content
- Cell / smart / mobile phones
- Luggage
Health and Beauty
- Cosmetic products
- Over the counter drugs
- Hair products (shampoo, styling products)
- Dental hygiene products
Automotive
- Automobile purchase at dealership
- Vehicle leasing
- Auto rentals (short term)
- Snowmobiles / four wheelers / boats etc.
- Vehicle parts / tires / vehicle service labour
Sports and Entertainment
- Hockey equipment
- Golf clubs / equipment
- Skis / snowboards
The Ontario and British Columbia Harmonized Sales Tax begins on July 1st 2010. Are you ready? Read our items subject to HST, services subject to HST and list of Ontario HST exemptions for more information regarding the upcoming changes.
