Preparing for tax deharmonization in B.C. (Legal View)

A checklist for payroll professionals who will be processing tax in the province

Just when payroll professionals think they have the systems set up to pay the right amount of sales tax at the right time to the right governmental authority, the rules undergo another change. Effective April 1, 2013, the 12 per cent federal harmonized sales tax (HST) will no longer apply on taxable supplies made in British Columbia.

Starting April 1, 2013, the five per cent goods and services tax (GST) will apply on taxable supplies made in B.C. and will be remittable to the Receiver General of Canada.

In addition, B.C.’s provincial sales tax (PST) will be reimplemented effective April 1, 2013, at a general PST rate of seven per cent and will be remittable to the government of B.C.

Determine if changes are required to payroll systems

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