British Columbia to Terminate Harmonized Sales Tax (HST)
Provincial Sales Tax to be Reinstated as Applicable
Along with Goods and Services Tax
Toronto, 26 August 2011: Canada's Association of Retail Travel Agents (ARTA Canada) alerted members today that British Columbia will reinstate two tax components, 7% PST and 5% GST, following the referendum decision by British Columbians to extinguish the HST in the Province.
An action plan has been established to guide the transition process and help ensure an effective and orderly transition from the HST to the PST plus GST system in British Columbia. The PST will be reinstated at 7% with all permanent PST exemptions. The Province may make some administrative improvements to streamline the PST.
The transition period is expected to take a minimum of 18 months, consistent with the report of the independent panel on the HST. During this period, the provincial portion of the HST will remain in place at 7%.
ARTA Canada is already in communication with both federal and provincial finance departments to determine the impact on the travel industry. Because of the "Place of Supply" rules and air transportation tax policy which were part of the HST regime, the impact on travel agencies in all provinces will be affected.
ARTA Canada put together a detailed, extremely well-received training program and guide when the HST was first introduced. A similar program will be made available as soon as transition procedures are finalized. ARTA Canada will keep agencies informed as developments become known.
About ARTA Canada
ARTA Canada is the largest non-profit federally incorporated professional association of travel retailers in Canada, the members of which consist exclusively of travel agencies and travel agents. In addition to advocating fair and equitable treatment of travel consumers, ARTA Canada represents the commercial and strategic interests of its member travel agencies and travel agents in a variety of national and provincial domains including regulatory and legislative matters, automation, technology, sales and marketing, and distribution.
ARTA Canada is the strategic partner in Canada of the U.S.-based Association of Retail Travel Agents (ARTA). For complete details about ARTA Canada's new $99 membership campaign or to join ARTA Canada, including secure payment on our web site, please visit www.artacanada.ca/join.