News and Insights

Ontario Tax Tips re: Point-of-Sale Rebates

Tax Development May 27, 2010

The Ontario Ministry of Revenue has issued three new Ontario HST Tax Tips to help consumers and retailers understand what goods will be eligible for point-of-sale rebates on the 8% provincial component of HST. 

Tax Tip #9, “Point-of-Sale Rebates” outlines the categories of qualifying goods for the point-of-sale rebates, which include:  print newspapers; qualifying prepared food and beverages; books; children’s clothing and footwear; children’s car seats and booster seats; diapers; and feminine hygiene products.  

Tax Tip # 10, “Point-of-Sale Rebate for Newspapers” clarifies what types of newspapers sold in Ontario qualify for the point-of-sale rebate of the 8% provincial component of HST.  Qualifying newspapers are defined as print newspapers that contain news, editorials, feature stories or other information of interest to the general public, and are published at regular intervals (i.e., on a daily, weekly or monthly basis), but do not include flyers, inserts, magazine, periodicals or shoppers.  The point-of-sale rebate will apply to qualifying newspapers regardless of whether they are sold on subscription, at newsstands or at retail outlets.  

This definition will replace the definition of newspaper currently used for the Ontario Retail Sales Tax exemption for newspapers, including the point-system approach as described in subsection 1(2) of Regulation 1013 of the Retail Sales Tax Act.  

Tax Tip #11, “Point-of-Sale Rebate for Qualifying Prepared Food and Beverages $4.00 and Under” has been released to supplement the information previously issued by Ontario regarding the point-of-sale rebate available for the 8% provincial component of HST on qualifying food and beverages sold for a total price of $4.00 or less.   

ON Tax Tip No 9
ON Tax Tip No 10
ON Tax Tip No 11