The Canada Revenue Agency has released this info sheet to explain whether the GST or the HST applies to supplies of property and services to Ontario and British Columbia government entities during the period that includes the July 1, 2010 implementation date in Ontario and British Columbia.
Effective July 1, 2010, Ontario and British Columbia government entities that are currently paying GST will pay GST/HST when acquiring taxable property or services. In addition, government entities in these provinces that currently claim an exemption from GST (i.e., ministries and other provincial entities listed on Schedule A to the current Canada-Ontario or the Canada-British Columbia Reciprocal Taxation Agreement) will pay GST/HST on taxable supplies acquired on or after July 1, 2010.
CRA GI-073