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Ontario's New HST (Sales Tax)

Discussion in 'Business Fundamentals' started by PrecisionSnow, Mar 13, 2010.

  1. PrecisionSnow

    PrecisionSnow Member
    Messages: 70

    I attended a seminar last week regarding the new HST which will be fully implemented by July 1st, 2010.

    I learned a pile of interesting points regarding the implementation of this new tax...

    One interesting point: you will be able to use HST credits the same as we currently use GST credits. To be clear, right now if you were to buy a $50,000 tractor, skid-steer, truck, etc. you would pay $4,000 in provincial taxes which you cannot recover in any way. After July 1st, you will be able to apply that amount as part of your HST credits.

    I immediately drove to my Ford dealer and cancelled / postponed my new F-350 order so that it will be delivered after July 1st..... :angry: I got there just in time as the order was going out in a day or two to the factory and then I would have been screwed.

    Apparently the heavy equipment dealers are really hurting because of this. Any thoughts?
     
  2. GMC Driver

    GMC Driver Senior Member
    Messages: 710

    I also attended a seminar on the same topic. The interesting point was made - the implementation of the HST is sure to stall alot of equipment purchases.

    There were also a few other things of note: If you have seasonal clients that pay for the full season up front, they must do so before May 1, 2010. After May 1, they will have to pay HST on the portion of services provided after July 1. For work in progress at July 1, work performed after July 1 will be subject to HST. And finally, for product delivered after July 1, but paid before July 1, HST does not apply. May and June are being dubbed a "transition" period.

    Also - bulk goods in inventory at June 30, but consumed for use after July 1 qualify for an RST rebate on the quantity of goods in inventory at July 1.

    Interesting stuff!
     
  3. Neige

    Neige Sponsor
    Messages: 2,197

    Its been like this in Qubec for years. The tax does not effect a business, because you can recoup the taxes paid. Where it hurts is at the retail end, or when you sell your service to a residential client, the cost to them will just have gone up 8%. Even when you expain to them that you are not profiting from this tax it has just cost them more for the same service.
    I will give you a hug tip, send out your letters to your clients this May, telling them that if they pay before July 1st they will save on the HST, sweeten the pot by subtracting $10.00 for the prepay. Now they will be saving at least $35.00, great incentive to get them to sign now. This is a one time deal, make it work for you.
     
  4. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,169

    If I run a three year contract price, prepaid by May do you think it would still qualify?
    Or would it be simply for this fiscal year.
     
  5. creativedesigns

    creativedesigns PlowSite.com Addict
    Messages: 1,929

    Its certainly not like this in every province tho, only 5 provinces are enrolled with the HST system. Ontario & BC will be the ones joining this year. According to Wiki, 82% of BC people oppose & 74% of Ontarians oppose the new tax as well.

    Even the Democrats are fighting to prevent it from going thru.

    Oh well, looks like there will be lots of CASH jobs this season! :cool: tymusic
     
  6. PrecisionSnow

    PrecisionSnow Member
    Messages: 70

    And when the auditors have finished with you, goodbye business.

    Are you sure you want to risk losing your "Millionaire Snow Plower" status? :eek:
     
  7. Triple L

    Triple L PlowSite Fanatic
    from Canada
    Messages: 5,988

    How funny would it be if someone on here has a wife that works for Revenue Can and read that :eek: LOL!!!
     
  8. PrecisionSnow

    PrecisionSnow Member
    Messages: 70

    - or -

    a husband that works for CRA ;)
    a bitter competitor
    a snubbed employee
    a frustrated client

    What do think 1500 previously employed provincial tax employees are going to be doing after July 1st?

    There will be a whole bunch of new auditors with watchful eyes. We saw it after the GST came out, too.
     
  9. Grassman09

    Grassman09 2000 Club Member
    Messages: 2,806

    Well it sure is not hurting Battlefield / Toromont. I tried to make a deal on a used compact track machine 1st of all he quoted me 8% interest on the machine and quoted me $3500 to truck it from Montreal to Toronto.

    But the Hewitt dealer is wanting to deal. Guess the local cat dealer here wanted to make a quick $3000 off the deal.
     
  10. Grassman09

    Grassman09 2000 Club Member
    Messages: 2,806

    So are you a bitter competitor to Cre and work full time for the Federal gov as a tax auditor and plow snow and landscape on the side like some other federal employee's? :confused:
     
  11. PrecisionSnow

    PrecisionSnow Member
    Messages: 70

    No, I don't care what Cre does, per say. I don't compete with Cre, and I certainly don't work for anybody but myself.

    I was suggesting that (a) there are female snow removal operators and (b) there are more than just auditors that might not be impressed with a company taking cash to "beat the system".

    Talking about cash jobs is not too much different that talking about plowing or landscaping with stolen equipment. It is illegal and drags the whole industry down. :realmad:
     
    Last edited: Mar 20, 2010
  12. Grassman09

    Grassman09 2000 Club Member
    Messages: 2,806

    So you have never ever done a job for cash? We all have at one point in time and I'm sure we did not declare it. But yea I wouldnt say on a open form that I do allot of cash work. Now he could rephrase it to say he will work for beer and ford parts for his truck.
     
  13. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,046

    I wonder who's wife that would be. LOL
     
  14. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    Sounds like you have a bigger ego than Cre...anyone else see a pattern?
     
  15. Neige

    Neige Sponsor
    Messages: 2,197

    Just remember guys, what you say on here never leaves. Even when the modes delete it, it can still be found in cyber space somewhere. And if you think Big Brother is not watching, and taking notes:laughing::laughing::laughing:
     
  16. GMC Driver

    GMC Driver Senior Member
    Messages: 710

  17. Triple L

    Triple L PlowSite Fanatic
    from Canada
    Messages: 5,988


    Straight out of my ethics and morals class in College... I actually learnt alot in that class, Looks like Cre never spent a few thousand of his millions on schooling tho :laughing:
     
  18. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    There will always be CASH paying customers, and their motives vary from being pissed off the pay alot of tax already, to running CASH type businesses themselves, that will never change.

    The CRA people are no idiots...Their latest brainstorm was the HRTC. IMO, Its motives wasnt to stimulate the economy, and get people spending, and reward them with a tax break...it was no different than Petro Points, AirMiles, or Aeroplan reward programs...they all create a paper trail.

    In the not to distant future, cold hard cash will be a thing of the past. Plastic and microchips will fill everyones pockets, and it will be accepted norm.

    A North American currency could very well be a reality in our lifetimes too. :drinkup:
     
  19. creativedesigns

    creativedesigns PlowSite.com Addict
    Messages: 1,929

    And what exactly is that supposed to mean.....
     
  20. creativedesigns

    creativedesigns PlowSite.com Addict
    Messages: 1,929

    Seems like Triple L is just the perfect little soul, that has never done a cash job & claims everything down to his last dollar to the CRA!

    Way to go!



    Im gonna pull a JD dave here, "You worry about what your suppost to be doing and dont worry about what im doing"...