Ontario has issued Tax Tip #5 to help public service bodies (PSBs) prepare for the HST in Ontario that will come into effect July 1, 2010. PSBs consist of charities, municipalities, universities, public colleges, school authorities, hospital authorities and non-profit organizations.
Generally the Canada Revenue Agency requires PSBs that make taxable supplies to register for GST unless they qualify as a small supplier. Where a PSB is currently registered for GST, there is no requirement to reregister for HST.
In addition, PSBs will usually be required to self-assess the Ontario component of the HST on consideration that is paid or payble after October 14, 2009 and before May 1, 2010 for property or services provided after June 30, 2010 under the following circumstances:
- ownership and possession of the property is transferred on or after July 1, 2010 or all or part of the services are performed after June 30, 2010; and
- the property or services are acquired to make exempt supplies or a combination of taxable/exempt supplies.