Tax memo: Eliminating the HST in British Columbia

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Canada’s Department of Finance proposes transitional rules

Memo No.: 2012-06

On February 17, 2012, Canada’s Department of Finance proposed transitional rules relating to the elimination of the Harmonized Sales Tax (HST) in British Columbia. This Tax memo discusses the details. The proposals do not reflect any Provincial Sales Tax (PST) transitional provisions that British Columbia will enact separately.

Supplies of property or services

The general transitional rules to eliminate the HST in British Columbia are similar to those that applied when HST was originally implemented and are based on the time when the consideration becomes payable under the Excise Tax Act (ETA):

Under the ETA, amounts typically become payable (due) on the earliest of:

• when the supplier actually issues an invoice for the supply;
• the date of that invoice;
• the day the supplier would have issued the invoice but for an “undue delay”; and
• the day the recipient is required to pay pursuant to an agreement in writing.

Read this Tax memo to learn more about the transitional rules.