Blog by Carol Lome, Broker

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Impact of H.S.T.

As many of you know, the new H.S.T. will begin very soon, but what impact will it have on the consumer?

All work completed and invoiced beginning July 1st, 2010 will have an additional charge of 13% for H.S.T. replacing the 5% G.S.T.

For all pre-paid Service Contracts invoiced and paid for prio to May 1st, 2010 only 5% will be applied. For work invoiced May 1st, 2010 and after this date, there will be a blended tax applied (5% for work to be done between May 1st and June 30th, 2010 and 13% for work to be done after June 30th, 2010).

Therefore, to save the extra tax, it is essential that Service Contracts be agreed to and paid prior to May 1st, 2010.