HST Rate and Base

The HST rate in B.C. is 12 per cent – a 7 per cent provincial portion and a 5 per cent federal portion, unless a provincial point of sale rebate applies. If the HST Referendum vote is to keep the HST, in 2012 the provincial portion of the rate will be lowered by one point, to 6 per cent. The rate will be lowered by another point on July 1, 2014 – bringing the provincial portion of the HST down to 5 per cent meaning a combined federal provincial HST rate of 10 per cent after July 1, 2014.

The HST applies to the same goods and services that are taxable under the GST.

• If there was no GST on a product or service before July 1, 2010 there is no HST today.
• HST of 12 per cent applies to all taxable goods and services (e.g. cars, clothing, furniture, haircuts), except the items eligible for a provincial point-of-sale rebate or other provincial rebate.

Consumers only pay 5 per cent HST (the federal part) on point-of-sale rebate items. There is no 7 per cent provincial HST. The point-of-sale rebate items are motor fuels, books, children-sized clothing and footwear, children’s car seats and car booster seats, children’s diapers and feminine hygiene products.

B.C. also provides a provincial credit for residential energy. The credit is equal to the provincial portion of the HST so it is like there is no provincial HST, only 5 per cent federal HST.

No. If there was no GST on a product or service before July 1, 2010 there is no HST today.

Consumers do not pay any HST on many goods and services, including many that were exempt or not subject to PST. Examples of goods and services on which there is no HST include:

• basic groceries
• prescription drugs and drug-dispensing fees
• medical devices such as hearing aids and artificial teeth
• most health and dental services (except for cosmetic procedures)
• most financial services
• long-term residential rental accommodation
• child-care services
• most educational services
• music lessons
• bridge, road and B.C. Ferries tolls
• most goods and services provided by charities
• municipal bus fares
• residential condominium / strata fees
• previously occupied homes

By 2012, on average, more than half of BC families will pay less tax under harmonization given B.C.’s income and HST tax relief measures. By 2014, when the HST rate falls to 10 per cent, on average, all families will benefit from harmonization.