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HST
As you are now aware, the provincial government has introduced the HST (Harmonized Sales Tax) in British Columbia this year. Here is some information about how the tax will affect the league fees for this upcoming season:
What is the HST? – The existing PST (Provincial Sales Tax) and GST (Goods & Services Tax) will be combined to create a single tax, the HST (Harmonized Sales Tax) at 12% in B.C.
When does the HST come into effect? – The HST will be applied to all transactions starting July 1st, 2010. It will also apply to transactions for services that straddle July 1st, 2010, and are paid for after April 30th, 2010.
How much will the HST cost? – All transactions in B.C., including all registration fees, will be subject to the new HST rate of 12% in B.C. (previously, only the 5% GST was charged on registration fees). This means an additional 7% in tax being charged on league fees beginning July 1st of this year, all of which is passed directly onto the government.
How is Urban Rec helping offset the increase cost of the HST? - We realize that no one likes the new HST, but we all have to live with it. Urban Rec has limited any price increases for its services during the 2010 - 2011 year to 2.8% (inflation and cost of living increase). To put this in perspective, our rental rates at our venues have increased on avarage 6.5% PLUS the HST for an increase of almost 14%.
Is there a way to save on the HST this year? – Unfortunately the BC Governement imposed a May 1, 2010 deadline to pay for, in full, any all fees associated with a good or service that takes place after July 1st.
Example (league fee amounts are for example purposes only):
If league fees paid in full for events before July 1, 2010:
League fees Volleyball Coed 6's = $480.00
GST 5% = $ 24.00
Total paid = $504.00
If league fees paid in full for events after July 1, 2010:
League fees Volleyball Coed 6's = $480.00
HST 12% = $ 57.60
Total paid = $537.60
For more information about the HST, please go to http://www.gov.bc.ca/hst/