Harmonized Sales Tax / Goods & Services Tax with respect to significant commercial sales and other business transactions

Neufeld Legal PC: Chris@NeufeldLegal.com - 403-400-4092 / 905-616-8864

The Goods & Services Tax (GST) is a federal tax that applies to the supply of most property and services in Canada and is statutorily mandated by the Excise Tax Act (Canada). In the province of Ontario, similar to select other participating provinces, the GST has been harmonized with the province's retail sales tax to create a combination or harmonized tax known as the Harmonized Sales Tax (HST).

The standard practice with respect to the assessment, collection and remittance of GST or HST sees the applicable GST/HST registrant charging, collecting and remitting to Revenue Canada (subject to offsets) the GST on taxable supplies (other than zero-rated supplies) of property and services made in Canada. However, where GST/HST registrants make taxable supplies (other than zero-rated supplies) in Canada, and those supplies are made in a participating province (i.e., Ontario), the GST/HST registrant must charge and account for the HST instead of the GST.

This, however, is a very simple overview of the HST/GST regime, with there being significant aspects associated with the tax that can makes matters rather complex, such that attaining appropriate professional advice can prove extremely valuable. At the law firm of Neufeld Legal PC, we look to bring together the appropriate professionals to assist your corporate business with respect to HST/GST and other legal matters of consequence to your commercial transactions.

For knowledgeable and experienced tax law representation for transactional tax matters and tax planning, contact tax lawyer Christopher R. Neufeld at Chris@NeufeldLegal.com or call 403-400-4092 (Calgary, Alberta) / 905-616-8864 (Toronto, Ontario).

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