What does the HST in Ontario and British Columbia mean for third party Dealers and Resellers of Fido /Rogers Products?
For Dealers and Resellers of Fido/Rogers products, the HST will mean that these products will no longer be purchased exempt of Ontario and B.C. PST (for resale purposes) as of July 1, 2010. Instead the HST will apply at 13% and 12% respectively. However as GST/HST registrants, Dealers and Resellers should be entitled to claim back the HST paid by claiming an Input Tax Credit on their GST/HST return. Example 1: On May 25, 2010, Rogers issues an invoice to an authorized dealer of cell phones in Ontario. The cell phones will be shipped on July 10, 2010. The authorized dealer pays for the invoice on July 15, 2010. Since the invoice is issued on or after May 1, 2010 and the cell phones were shipped to the authorized dealer after June 30, 2010, the authorized dealer will pay HST at 13%. The authorized dealer should be entitled to claim an Input Tax Credit (ITC) on its GST/HST return to recover the HST paid on the purchase.
