When does provincial sales tax apply?
As set out above, on March 26, 2009, the Government of Ontario announced plans to harmonize the Ontario retail sales tax with the federal GST at a combined rate of 13%, to take effect on July 1, 2010. The following discussion concerns the current rules in Ontario but is subject to change once the harmonization takes effect. The province of Ontario levies a retail sales tax of 8% on the purchaser of most tangible personal property purchased for consumption or use in Ontario or imported into the province, including most computer software. Certain services are also subject to this tax. Generally, the tax is based on the sale price of the taxable goods or services being sold at the retail level. Most other Canadian provinces also impose sales taxes. It should be noted that Ontario retail sales tax is calculated on the purchase price excluding the federal GST and that the GST is calculated on an amount excluding all provincial sales taxes. Some provinces do, however, include the GST in the
