News and Insights

Ontario Tax Tips re: Wind-up of Retail Sales Tax

Tax Development Jun 30, 2010



The Ontario Ministry of Revenue has issued four new Ontario HST Tax Tips to help vendors understand their obligations regarding the administration of RST for periods straddling the HST implementation on July 1, 2010.  

Tax Tip #13, “Final, Supplemental and Amended Retail Sales Tax Returns” provides information on the type of Retail Sales Tax (RST) returns that may be filed and when they are due.  The final RST return will cover the period up to June 30, and will be due by July 23, 2010.  Supplemental returns, which will be available for vendors to report RST collectable or received after June 30, are available by contacting the Ministry of Revenue at 1-866-668-8297 or online at ontario.ca/taxchange.  The final supplemental RST returns are due by November 23, 2010.  

Please see below for a copy of the Ontario RST Supplemental Return Card.

Tax Tip # 14, “Retail Sales Tax Clearance Certificate Requirements Post June 30th, 2010” has been issued to remind taxpayers that RST liabilities may continue for periods after June 30, 2010, where a sale occurs under the Bulk Sales Act, on or after July 1, 2010.  Vendors that sell their businesses or business assets, in whole or in part, through a sale in bulk on or after July 1, 2010 will continue to be required to obtain a Clearance Certificate from the Ontario Ministry of Revenue certifying that all RST collectable or payable by the seller has been paid or secured.  

Tax Tip #15, “Vendor Permits” clarifies that on June 30, 2010, all current RST vendor accounts were closed by the Ontario Ministry of Revenue.  The tax tip contains information for tobacco retailers and businesses selling insurance products where taxes levied by the province will continue after June 30, 2010.  

Tax Tip #16, “Retail Sales Tax Transitional Inventory Rebate” provides information to help contractors that repair and/or improve residential real property understand if they are eligible for the RST transitional inventory rebate.  An RST rebate will be available for RST paid on construction materials that were held in inventory immediately prior to July 1 2010, and incorporated into residential real property as part of a repair or improvement on or after July 1, 2010.  

ON Tax Tip No 13
ON Tax Tip No 14
ON Tax Tip No 15
ON Tax Tip No 16
ON RST Supplemental Return Card