BC: Harmonized sales tax (HST) transitional rules have been released by the provincial government to help businesses deal with the changeover.

The rules deal with cases when HST and provincial sales tax straddle the July 1, 2010 changeover date and any special circumstances that may arise.

"B.C. is working to provide businesses and consumers with the technical guidelines to ensure the smoothest possible transition to a single harmonized sales tax on July 1, 2010," Finance Minister Colin Hansen. "The clarity provided by the transitional rules will ensure that taxpayers are properly prepared in the lead-up to harmonization."

Straightforward rules apply to any goods or services bought on or after the changeover date, and will apply May 1, 2010 or alter for any services prepaid for to take effect on or after the transition date.

Transition rules where HST will not apply include:

• Periodical subscriptions paid before July 1, 2010;
• Transportation tickets commenced before transition;
• Funeral services contracted before changeover;
• and rebate will be available for residential contracts on construction materials bought before July 1, 2010 and used for residential property contracts subject to HST.

"The HST builds on numerous tax cuts introduced over the past eight years to enhance the competitiveness of the provincial tax system," said Hansen.

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