As a bookkeeper, I’ve been closely following all the HST news that has been coming out over the past number of months. I’m sure a lot of people have the July 1st date in mind. However, May 1st is an important date to note.

Effective May 1st, if you are invoicing for goods or services THAT WILL BE PROVIDED on July 1st, or later, you should be charging HST, not GST, if your invoice is dated May 1st or later.

Basically, as of July 1st, any services that previously only charged GST (5%)are now charging HST (13%). And any goods or services that previously charged GST (5%) and PST (8%) will now – for the most part – charge simply the 13% HST. There are a number of small exceptions to this rule, but in the main, these are the guidelines. But as this post is pointing out, starting on May 1st, you should be charging (and paying) HST on anything you are paying for NOW that you are not “getting” until July 1st or later.

I have more information in posts to follow, but wanted to get this out to you. The key things to remember are:

• Be prepared to change your point-of-sale system on July 1st (or sooner if you bill for July items in advance)
• Know what the exceptions are and which items are eligible for HST rebates
• Ensure your bookkeeping is on track to capture the appropriate taxes properly
• Ensure your bookkeeper fully understands the guidelines for the termination of PST/RST filing and the new GST/HST filing

It’s a big change, so please make sure you are ready for it!