So I had a very exciting morning at one of the HST seminars currently being run by the wonderful folks at the Canadian Revenue Agency, and thought it would be worth posting a comments here to clear up any misconceptions about how it might affect your wedding costs.
In a nutshell for most of my clients there will be no changes apart from in name on invoices, i.e. the combined 12% tax of GST/PST will become one line item of HST. The overall cost will be the same. My clients that will be affected are those in Ontario where the new HST tax is also coming into affect. I will now have to collect 13% tax on any balances owing instead of the current 5% GST. This will apply for any weddings where I will end up shipping goods to Ontario after the 1st July.
Under the transitional rules which come into effect this Saturday 1st May, I have to collect HST on any events I invoice that will occur after July 1st. So even though HST itself doesn’t come into effect until July 1st, you might start seeing it on sales receipts as from this Saturday.
There are some other major changes as you know, probably the most important of which is that HST is now being charged on ‘intangible goods/services’, whereas on the whole these were exempt under the previous Provincial PST tax. What does that mean for your wedding costs? Simply look at any vendors that didn’t collect PST on previous invoices. they will now have to collect HST (i.e. an additional 7% or 8% in Ontario) from you if your wedding is after July 1st. So this might apply to say D.J’s, or the marriage commissioner as they typically provide a service rather than a physical product. Other vendors such as myself and the wedding reception venue will already be collecting the 12% tax as we provide tangible goods (e.g. wedding album, or reception food).