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Does the Harmonized Sales Tax (HST) apply if the contract was awarded before July 1, 2010?

April 26, 2017contract Harmonized HST July 1

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Does the Harmonized Sales Tax (HST) apply if the contract was awarded before July 1, 2010?

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HST may apply depending on the percentage of work performed prior to July 1, 2010. If at least 90% of the work is completed prior to July 1, 2010, then HST does not apply. However, if less than 90% of the work is completed, HST applies to the portion of work done after July 1, 2010. For example, if a contract valued at $50,000 is awarded on January 1, 2010 and 60% of the work is completed before July 1, 2010, then HST would apply to 40% of the value of the contract or $20,000. You will need to amend your contract to remove the GST applicable to the portion of services received after July 1, 2010 and include the value of HST.