What's Taxable Under the HST and What's Not?

1 Page 1 Here are examples of common products and services and how they will be affected by the HST. 1 Although sales tax on alcohol is decreasing, other alcohol fees and taxes are changing to continue to support social responsibility. Answering your questions about Ontario s Harmonized Sales TaxWhat s Taxable Under the HST and What s Not?CLOTHING AND FOOTWEAR:FOOD AND BEVERAGES:GST- Taxable beforeJuly 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?Adult Clothing5%8%No (remains 13%)Children s Clothing5%No PSTNo (remains 5%)Shoe Repair Service5%8%No (remains 13%)Children s Footwear5%No PST if $30 or lessNo for footwear up to size 6 (remains 5%)Tailoring Services5%8%No (remains 13%)Dry Cleaning Service5%No PSTYes (changes to 13%)Did You Know? million families and individuals in Ontario will receive sales tax transition benefi ts in three instalments over one year beginning in June beforeJuly 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?

2 Basic Groceries ( , Dairy, Meat, Vegetables, Canned Goods)No GSTNo PSTNo HSTS nack Foods ( , Chips, Pop)5%8%No (remains 13%)Qualifying Prepared Food and Beverages Sold for $ or Less5%No PSTNo (remains 5%)Restaurant Meals for More than $ (remains 13%)Alcoholic Beverages5%10-12%HST 13%1 Page 2 HOME SERVICES: Did You Know?93 per cent of all homes sold in Ontario, on average, will not be subject to an additional tax amount Under beforeJuly 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?Cable Television Services5%8%No (remains 13%)Cell Phone Services5%8%No (remains 13%)Municipal WaterNo GSTNo PSTNo HSTHome Maintenance Equipment5%8%No (remains 13%)Home Phone Services5%8%No (remains 13%)Home Service Calls to Repair Free-Standing Appliances such as Stoves, Refrigerators, Washers, Dryers, and Televisions5%8%No (remains 13%)Home InsuranceNo GST8%No (remains 8%)Electricity and Heating ( , Natural Gas/Oil for Home)5%No PSTYes (changes to 13%)Internet Access Services5%No PSTYes (changes to 13%)Home Service Calls by Electrician/Plumber/Carpenter to Maintain or Repair Furnace, Leaky Faucets, Bathtub, Toilet, Electrical Wiring, PSTYes (changes to 13%)Landscaping, Lawn-Care and Private Snow Removal5%No PSTYes (changes to 13%)Page 3 ACCOMMODATION, TRAVEL AND PASSENGER TRANSPORTATION SERVICES.

3 GST- Taxable beforeJuly 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?Luggage, Briefcases, Bags, (remains 13%)Municipal public TransitNo GSTNo PSTNo HSTGO TransitNo GSTNo PSTNo HSTAir travel originating in Ontario and terminating in the PSTNo (remains 5%)Air travel originating in Ontario and terminating outside of Canada and the GSTNo PSTNo HSTRail, boat and bus travel originating in Ontario and terminating outside of CanadaNo GSTNo PSTNo HSTH otel Rooms5%5%Yes (changes to 13%)Taxis5%No PSTYes (changes to 13%)Camp Sites5%No PSTYes (changes to 13%)Domestic air, rail, boat and bus travel originating in Ontario5%No PSTYes (changes to 13%)2 Includes air travel terminating in the French islands of St. Pierre and Miquelon but does not include air travel terminating in Hawaii.

4 3 Includes air travel terminating in Hawaii but does not include air travel terminating in the French islands of St. Pierre and 4 AROUND THE HOUSE:Did You Know?The comprehensive tax package provides Ontarians with $ billion in tax relief over three beforeJuly 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?Cleaning Products5%8%No (remains 13%)Laundry Detergent, Fabric Softeners5%8%No (remains 13%)Household Furniture5%8%No (remains 13%)Refrigerators and Freezers5%8%No (remains 13%)Pre-Packaged Computer Software5%8%No (remains 13%)Books (including Audio Books)5%No PSTNo (remains 5%)Newspapers5%No PSTNo (remains 5%)Offi ce Supplies, Stationery5%8%No (remains 13%)Landscaping Materials including Sod, Seeds, Plants5%8%No (remains 13%)Linens ( , Blankets, Towels, Sheets)5%8%No (remains 13%)Tents, Sleeping Bags, Camping Supplies5%8%No (remains 13%)Tools5%8%No (remains 13%)Patio Furniture5%8%No (remains 13%)Barbeques, Lawnmowers, Snowblowers, Sprinklers5%8%No (remains 13%)Toys ( , Puzzles, Games, Action Figures, Dolls, Playsets)5%8%No (remains 13%)Outdoor Play Equipment ( , Swing Sets, Sandboxes, Slides)

5 5%8%No (remains 13%)Craft Supplies5%8%No (remains 13%)Building Materials ( , Lumber, Concrete Mix)5%8%No (remains 13%)Magazines Purchased at Retail5%8%No (remains 13%)Magazines Purchased by Subscription5%No PSTYes (changes to 13%)Home Renovations5%No PSTYes (changes to 13%)Page 5 MOTORIZED VEHICLES: GST- Taxable beforeJuly 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?Vehicle Parts5%8%No (remains 13%) Short-Term Auto Rentals5%8%No (remains 13%)Lease of a Vehicle5%8%No (remains 13%)Child Car Seats and Booster Seats5%No PSTNo (remains 5%)Auto InsuranceNo GSTNo PSTNo HSTL abour Charges to Repair Vehicle5%8%No (remains 13%)Oil Change5%8%No (remains 13%)Tires5%8%No (remains 13%)Window Repair5%8%No (remains 13%)Purchase of Vehicle from Dealer5%8%No (remains 13%)Boats5%8%No (remains 13%)Snowmobiles5%8%No (remains 13%)Recreational Vehicles5%8%No (remains 13%)Private Resale of Car (including Registration)No GST8%Yes4 (changes to 13%)Gasoline/Diesel5%No PSTYes (changes to 13%)4 HST does not apply.

6 However, Ontario will maintain the PST on private transfers of used vehicles at a rate of 13 per cent to help ensure a level playing fi eld between sales by dealerships and private before July 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?New Homes up to $400,0005%No PSTNo change5 New Homes over $400,0005%No PSTYes5 AResale HomesNo GSTNo PSTNo HSTReal Estate Commissions5%No PSTYes (changes to 13%) 5 The new housing rebate will be 75 per cent of the Ontario component of the HST, up to a maximum of $24,000. The rebate will ensure that buyers of homes priced up to $400,000 will, on average, pay no more tax than Under the PST system. However, applicable PST on building supplies is embedded in the price of the New homes purchased as primary residences, valued at $400,000 or more, will be eligible for the maximum new housing rebate of $24,000.

7 HOME PURCHASES:Page 6 HEALTH PRODUCTS AND SERVICES: GST- Taxable beforeJuly 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?Audiologist ServicesNo GSTNo PSTNo HST if offered by a practitioner of the ServicesNo GSTNo PSTNo HST if offered by a practitioner of the ServicesNo GSTNo PSTNo HST if offered by a practitioner of the Dispensing FeesNo GSTNo PSTNo HSTOver-the-Counter Medications5%8%No (remains 13%)Prescription DrugsNo GSTNo PSTNo HSTSome Medical Devices(includes Walkers, Hearing Aids)No GSTNo PSTNo HSTP rescription Glasses/Contact LensesNo GSTNo PSTNo HSTF eminine Hygiene Products5%No PSTNo (remains 5%)Adult Incontinence ProductsNo GSTNo PSTNo HSTD iapers5%No PSTNo (remains 5%)Cosmetics5%8%No (remains 13%)Hair Care Products ( , Shampoo, Conditioner, Styling Products)5%8%No (remains 13%)Dental Hygiene Products ( , Toothpaste, Toothbrushes)5%8%No (remains 13%)Massage Therapy Services5%No PSTYes (changes to 13%)

8 Vitamins5%No PSTYes (changes to 13%)Page 7 GST- Taxable beforeJuly 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?Condo FeesNo GST8No PST8No HST8 Residential RentsNo GSTNo PSTNo HSTH ockey Rink and Hall Rental Fees5%No PSTYes (changes to 13%)8 Residential condo fees charged to residents are exempt; however, purchases by condominium corporations will be subject to HST, if AND RENTALS:MEMBERSHIPS, ENTERTAINMENT AND SPORTS EQUIPMENT:GST- Taxable beforeJuly 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?Admissions to Professional Sporting Events5%10%Combined rate going down to 13% from current 15%Movie Tickets5%10%Combined rate going down to 13% from current 15%Music LessonsNo GSTNo PSTNo HSTSkis and Snowboards5%8%No (remains 13%)Hockey Equipment5%8%No (remains 13%)Golf Clubs5%8%No (remains 13%)Green Fees for Golf5%No PSTYes (changes to 13%)Gym and Athletic Membership Fees5%No PSTYes (changes to 13%)Ballet, Karate, Trampoline, Hockey, Soccer Lessons, PSTYes6 (changes to 13%)Tickets for Live Theatre with Less than 3,200 Seats5%No PSTYes7 (changes to 13%)

9 6 HST Taxable , although some could be HST-exempt if provided by a public service body to children age 14 and Under and underprivileged individuals with a HST Taxable , although some could be exempt if maximum admission charged by a public service body is $1 or less, if the admissions are made in the course of the fundraising events where charitable receipts for income tax purposes may be issued, or admissions are to amateur 8 GST- Taxable before July 1, 2010 PST- Taxable before July 1, 2010 Is there a change to the amount of tax payable Under the HST?Child Care ServicesNo GSTNo PSTNo HSTL egal AidNo GSTNo PSTNo HSTC offi ns and Urns Purchased Separately from a Package of Funeral Services5%8%No (remains 13%)Fitness Trainer5%No PSTYes (changes to 13%)Hair Stylist/Barber5%No PSTYes (changes to 13%)Esthetician Services ( Manicures, Pedicures, Facials)5%No PSTYes (changes to 13%)Funeral Services5%No PSTYes (changes to 13%)Legal Fees5%No PSTYes (changes to 13%)Did You Know?

10 Approximately million families and individuals would benefi t from the proposed Ontario Energy and Property Tax Credit, which would provide over $ billion annually in energy and property tax AND PERSONAL SERVICES:ELECTRONICS:GST- Taxable before July 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?TVs5%8%No (remains 13%)DVD and Blu-ray Players and Accessories5%8%No (remains 13%)MP3 Players5%8%No (remains 13%)Cell Phones, Smart Phones5%8%No (remains 13%)Cell Phone Service5%8%No (remains 13%)CDs, DVDs and Blu-ray discs5%8%No (remains 13%)Radios and Stereos5%8%No (remains 13%)Computers and Printers5%8%No (remains 13%)Page 9 TOBACCO:GST- Taxable beforeJuly 1, 2010 PST- Taxable beforeJuly 1, 2010Is there a change to the amount of tax payable Under the HST?Cigarettes and Other Tobacco Purchases5%No PSTYes (changes to 13%)Nicotine Replacement Products5%No PSTYes (changes to 13%)BANKING AND INVESTMENTS:Did You Know?