Janice Roper, tax partner with Deloitte
To save a bit of cash before the PST comes back into effect, business owners need to do exactly the opposite from consumers. Here from Janice Roper, Deloitte tax partner, is a quick summary of the new transitional rules introduced by the finance minister last night:
Business owners:
Buy your computer systems, office supplies and furniture before April 1, 2013. You’ll pay seven per cent more starting April 1. It’s the payment and invoice date that count. If you buy something before April 1, it’s taxable under HST. If you buy it April 1 or after, it’s taxable under PST.
Consumers:
Hold off. Most services will not be subject to PST so if you can delay getting your haircut until April 1, you’ll save seven per cent. Most goods will be taxable at the same rate. You’re not going to see much of a change. If you’re buying a bicycle or a car seat, holding off until April 1 will save you some tax.