Harmonized Sales Tax (HST)

The latest information on implementation and potential impact of the HST on non-profit housing providers.

About the HST

Ontario's new Harmonized Sales Tax (HST) will come into force on  July 1, 2010. As a result of this harmonization, almost all goods and services bought and sold in Ontario will be taxed at 13%. This means that many items that are currently taxed under the 5% GST, but that are PST-exempt, will soon be taxed at the full 13%. For non-profit housing providers, this will include items such as natural gas, hydro, contract labour, as well as professional and consulting fees.
 
This page contains a variety of resources that will assist housing providers as harmonization comes into effect.  Scroll down or click on the links below to learn more about the new tax, its impact on non-profit housing operations, and rebates in place that can offset the tax increase.

Learn More About:

• What's New?
  
  
• ONPHA Resources & Tools
  • ONPHA's HST Webinar and Q&A's
  • The ONPHA HST Calculator
  • HST Transition Period Rules
  • Impact of the HST: An ONPHA and CHF Canada Ontario Region Report
    
• Information for Providers Undertaking New Development
  • HST Construction Rules
  • HST Transition - New Development
    
• Other HST Resources
  • Provincial HST Information and Resources
  • Federal HST information and Resources
  • Information on Municipal Designation

ONPHA Tools and Resources

ONPHA's HST Webinar: Archived Recording and Q&A Available

Did you miss ONPHA's free webinar on the HST and its implications for non-profit housing providers? Click here to access a recording of this important and useful webinar! ONPHA has several archived webinars specifically geared toward non-profit housing providers, visit ONPHA's video and webinar library to learn more!

Questions posed by participants at ONPHA's HST Webinar on Feb 26, 2010 have been answered.  See the Q&A here.

Excel Spreadsheet - ONPHA's HST Calculator

Use this tool to determine the impact of the HST on your non-profit's housing operations.  By entering your budget numbers, you will be able to calculate the impact of the HST on your bottom line.

Please Note: The on-line calculator has been revised and this version should replace the earlier version that was distributed at the conference workshop on the HST.

Click here to access the newly updated calculator!

HST Transition Period Rules

Click here to see a summary description of the July 1 transition rules.

Information for Providers Undertaking New Development

HST Construction Rules

Click here to see a summary description of the rules associated with the provincial portion of the HST on the construction of new rental housing by non-profits.

HST Transition - New Development

Credits and Rebates for Non-Profit Housing Providers Undertaking New Development

This information is for the purpose of determining the percentage of completion of the construction, or substantial renovation, of housing as of July 1, 2010.
 
The intent of the provincial transitional new housing rebate is to ensure that new or substantially renovated housing is not subject to both the HST and the RST.

Ministry of Revenue officials have put together the following information on the eligibility of subsidized housing for various credits and rebates as part of the transition to the HST.  For more information, view the HST Transition and Subsidized Housing Questions and Answers.

Please note that the information below reflects the Ministry's recommended process. We are reviewing the application of this information with ONPHA members who are currently developing in order to better understand any negative financial impact.

Steps to Claiming the Transitional New Housing Rebate

1. Pursue an interpretation / ruling from the CRA to determine how much of the building qualifies as a residential complex for purposes of the RST Transitional New Housing Rebate -- areas used for non-residential purposes may be carved out (e.g., first floor health clinic would be carved out).
   
   
2. Once it is determined how much of the building is included in the residential complex, determine the interior floor space for purposes of claiming the RST Transitional New Housing Rebate (e.g., certain non-habitable areas such as unfinished boiler-rooms would not qualify as part of the interior floor space). The guidelines for determining the extent of completion and the qualifying interior floor space, is posted here.
   
   
3. Calculate the degree of completion of the complex as of July 1, 2010, using the CRA's guidelines, which is posted here.
   
   
4. Finally, as indicated in Information Notice No. 2, Helping Homebuyers and the Housing Industry with an Enhanced New Housing Rebate, a New Rental Housing Rebate and Transitional Rules, taxpayers have the option of claiming the RST Transitional New Housing Rebate using one of two methods: taxpayers may calculate the amount of the rebate using the floor space method (under this method the rebate can be claimed on or after July 1), or the consideration / fair market value method (under this method, the rebate cannot be claimed until the HST becomes payable on the sale of the housing or is considered to be paid on a self-supply of the housing). 

CRA has provided a dedicated phone number that you may call - CRA GST/HST Rulings Centre at 1 800 959-8287 if you have specific questions about the outlined process. 

Other HST Resources on the Web

Provincial:

The Ontario Ministry of Revenue released General Transitional Rules for Ontario-HST in mid-October, 2009 and general HST information related to housing has been posted.

Bill 218, The Ontario Tax Plan for More Jobs and Growth Act, 2009 received Royal Assent on December 15, 2009. This bill allows for the implementation of the Harmonized Sales Tax. Click here to view the Act or click here to view the Ministry of Revenue Act.

The Ministry of Revenue has prepared several notices on HST topics.  Click here for a complete list of notices.  Notices 1 and 4 will be of interest to housing providers.

For more information on the HST and tax changes, click here.

Federal:

The Canada Revenue Agency (CRA) has posted general information about the HST on its website.  Information sheets, question and answer overviews, and other information can be accessed by click here.

CRA information specific to Ontario can be found here.

The CRA is offering Information Seminars and on-line webinars throughout Ontario for a discussion of the HST and its impact on businesses.

These Information Seminars and webinars are offered at no charge.
 
For a listing of locations, dates and times, please click here.
 
CRA Hot Lines
 
1-800-959-8287 for HST and issues related to real property
1-800-959-5525 for HST and personal tax issues

GST/HST Information for Municipalities

This bulletin contains current information on municipal designation.

Stay Tuned…ONPHA will update this page as additional information becomes available. Check back often!