Thursday, July 7, 2011

Retail Sales Tax on Insurance Premiums Post HST (Ontario Canada )

We have had several inquiries from clients regarding the application of the Retail Sales Tax since the implementation of the Harmonized Sales Tax (HST) in Ontario, Canada.

There is some confusion regarding Insurance Premiums which still attract sales tax at varying rates.  To put it simply, the Retail Sales Tax remains in effect and is, in fact unchanged, despite the implementation of the HST in July of 2010 in Ontario.  So, if RST applied prior to the implementation of HST, then it still applies currently.  However, Retails Sales Tax on insurance premiums is not part of the HST tax process and CAN NOT be used for Input Tax Credits for HST.

For more detailed information on this and other tax related matters, please visit our website at

www.liwanpo.com

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