On July 1, 2010, The Retail Sales Tax and the Goods and service Tax will be combined into one value-added sales tax. This page has been developed as your main source to provide detailed information on the transition and implementation of the the HST as it relates within the industry.

OAA Council created an HST task group to do “research on the impact of the HST on various firm sizes, and invite the Ministry of Finance to hold an information session for the membership at the OAA”. Click here to view the first update of that task group.

The following joint bulletin developed by the OAA & OGCA is provided to the design & construction industry in an effort to bring clearer information and guidance to members:

OAA/OGCA HST Update for the Design Industry

HST Related e-bulletins:

June 9, 2010

Progress Payments and Release of Holdback 

Progress Payments

Identifying work completed up to June 30, 2010 is critical to having clear documentation for tax purposes. The OAA recommends that all applications for progress payment and/or invoices from contractors or consultants be produced for work up to and including June 30, 2010, regardless of any other billing cycles that may be in place. If a construction project has a strict billing cut-off date that is other than the end of the month, a separate billing should be produced for work between then and the critical June 30, 2010 date. If you are not presented with applications for progress payment or invoices for work ending at the critical date, you could calculate by pro-rating and issue two Certificates for Payments, one for work delivered on or before June 30, 2010 with 5% GST, and one for work delivered on or after July 1, 2010 with 13% HST.

Release of Holdback

The proper application of tax to Release of Holdback amounts is also split for portions of work done before and after June 30, 2010, even though the payment of the holdback can take place long after the implementation date. What appears to be the best way to do this is to issue two Certificates of Payment for the Release of Holdback at the same time – one for work up to and including June 30, 2010 - with 5% GST applied and the second Certificate of Payment for Release of Holdback for work done after - with 13% HST applied. Both Certificates would be issued and be payable at the same time. This procedure will permit the correct tax to be applied for the correct portion of work, leaving a discernable paper trail tied to the transition date.

For more information refer to item 82 and 86 of: Canada Revenue Agency GST/HST Notice No. 244

February 3, 2010 

Important Alert for those currently Preparing Bid Documents (Login required) E-BULLETIN ADD

Harmonized Sales Tax Seminars

The “build” industry, architects, engineers, designers etc, will experience an immediate bottom line effect with the introduction of the Harmonized Sales Tax. How you prepare now will not only mitigate this effect but assist you in ensuring you are taking corrective measures to maintain profitability and reduce administrative headaches.

To ensure we are adequately addressing the effect the HST will have on different types of projects, OAA, ARIDO, CEO, and OSPE have created separate seminars for those who are in a business to business environment and for those who work primarily in a consumer environment: 

HST – Integrating into your Residential Architecture and/or Interior Design Practice

HST- Integrating into your Corporate/Commercial Architecture and/or Interior Design Practice

Resources:

• OAA/OGCA Practice Tip: Guidelines for Administering Contracts that Span the Transition to HST on July 1, 2010
• WSIB Materials/Labour List