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Queen's University
 

Harmonized Sales Tax (HST) Introduction

On July 1, 2010 Harmonized Sales Tax (HST) came into effect in Ontario.  HST includes both a federal component tax of 5% and a provincial component tax of 8% (for Ontario), for a combined tax rate of 13%. HST is administered by Canada Revenue Agency and in general the same rules that applied to GST apply to HST.

The Ontario government gives universities a 78% rebate on the provincial component of the HST (8%). There is also a rebate of 67% on the federal component of HST (5%). Some expenses may qualify for additional rebates.

HST Collected  

HST collected should be recorded to the same fund and department as the revenue associated with the HST collected.

Employees filling out deposit transmittals must fill in the fund and department in the HST chartfield line. The account will be locked at 210080. The fund and department will be the same as the associated revenue.

HST Paid  

HST paid should be recorded to the same fund and department as the expense associated with the HST paid.

Vouchers and cheque requisition entered by Accounts Payable are automatically defaulted to book the HST paid to the appropriate fund and department.

For additional information on HST, please refer to the Queen's Tax Status Chart, HST PowerPoint presentation, and related links below. 

HST Overview Presentation (389 KB)

Related Links

Canada Revenue Agency

http://www.cra-arc.gc.ca/menu-eng.html

Ministry of Finance

http://www.rev.gov.on.ca/en/notices/hst/03.html

Kingston, Ontario, Canada. K7L 3N6. 613.533.2000