Ontario has issued Tax Tip #3 to clarify vendor compensation limits in conjunction with the implementation of HST on July 1, 2010. General vendor compensation will end as of March 31, 2010, the same date as the government’s fiscal year end. As announced in the 2010 Ontario budget, vendor compensation will be extended to RST vendors of up to $375 for the period April 1, 2010 to June 30, 2010.
Tax Tip #4 discusses the taxation of insurance premiums in Ontario in light of HST coming into effect July 1, 2010. Insurance premiums are currently exempt from GST as financial services and this exempt treatment will continue under HST. Ontario will continue its application of tax at a rate of 8 per cent on the same types of insurance premiums currently taxed under RST.
ON Tax Tip No 3
ON Tax Tip No 4