For professional photographers in British Columbia and Ontario: the new Harmonized Sales Tax (HST) starts on July 1, 2010, but the effects of this new tax start two months earlier on May 1st.
Starting in May, you must charge HST on any photography that will be delivered/completed on or after July 1st. If you complete a project and deliver the photographs before July 1st but invoice the customer after July 1st, then you must charge HST. Generally, the HST is applicable to any amount that becomes due on or after July 1st. But to no one’s surprise, there are several exceptions and special situations. Federal government information is here.
For clients who currently pay GST and PST, there will be no change in the total amount of tax they pay. For clients who now pay only GST, they will have to pay more tax. These latter (commercial) clients should be able to get the tax rebated to them.
The new HST will benefit registered photographers since it’ll be easier for them to claim tax credits for the provincial sales tax they pay on business purchases. But for consumers, the HST will do nothing but increase the amount of sales tax they pay.
Added: Federal government GST/HST calculator and tax rates.
Please check the date of this article because it contains information that may become out of date. Tax regulations, sales tax rules, copyright laws and privacy laws can change from time to time. Always check with proper government sources for up-to-date information.
