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Does anyone happen to know what will be happening with suppliers and wholesalers when the HST in Ontario comes into full effect July 1st? From what I've gathered, we have a choice to either charge customers HST and get tax exemptions from wholesalers (the way it was done before with the RST vendor's permit), or not charge customers tax and get no tax exemptions at all when we buy supplies.
What I would like to know is what will happen with suppliers such as Bamiyan, who require a permit to shop, or with craft fairs who also required that having a permit be necessary to participate. If I choose not to register for the HST voluntarily and have no permit, will I be allowed to buy from such places at all?
To speak with an information officer about the introduction of the HST in Ontario and wind-down of the Retail Sales Tax (RST), please call 1 800 337-7222
If you get an answer could you please post it? I think a lot of people are confused right now! I'm signing up for one of the free classes and will try to create a post about the new rules - at least I should be able to point people in the right direction!
Sara, I called Bamiyan today, and this is what they told me *they* are going to do, so I don't know if this will apply to other places.
Once HST hits on July 1st (or before then if you're like me, and have been denied a Vendor's Permit because it's too close to the deadline) they will allow anyone to buy from them if they sign a form that states what you are buying is for the purpose of re-sale only, and I understand you will have to provide some business information. That's only for in-store, I forgot to ask what would happen if you want to buy online.
This may or may not be a permanent solution, it depends on wether or not the federal goverment decides that some sort of registration will be needed at wholesale places to prove you do have a business.
I'm going to continue contacting suppliers to ask what they plan on doing. I'll post the info as I go along.
I attended one of the free workshops, it provides a 3-hour overview of the incoming HST, and the retiring of the PST.
For people like me, who sell through an agent (gallery), I've been told the following:
1. register for the HST
2. instruct your gallery to remit any HST they collect, and a statement showing HST $ as a separate amt from sales $
3. file regular HST reports -- list HST $ collected, against HST paid for raw materials (aka "input tax credits"
That's the only way to get back the tax $s you've laid out on metal, stones, etc. You have to pay, then claim it back.