Canada: British Columbia rejects HST revised VAT |
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1 September 2011 - TMF Group Globalizing Business Canada's British Columbian voters have rejected the sales tax, Harmonized Sales Tax (HST) - a sales tax which is similar to VAT or GST. This means the old Provincial Sales Tax (PST) and GST will be reintroduced. The new HST has been rolled out across Canada, with most provinces now having introduced it. It was designed to replace the existing local PST and federal (national) GST and simplify calculations, compliance requirements and collections of the two taxes. Click here to review all Canadian HST, GST and PST (VAT) tax rates British Columbia and Ontario introduced HST in 2010. The big drawback of HST was that it meant certain products and services which had only be subject to GST were now subject to the higher, combined HST rate. On 26 August, a referendum of British Columbia voters rejected the new tax. It will take approximately two years to reintroduce the old PST and GST systems. |
