Provincial Sales Tax
Preparing for the HST (see below for " Preparing the PST Return")
The Ontario PST system is being eliminated effective June 30, 2010. You will not charge PST on any transactions dated after June 30, 2010.
A final PST return will be due July 23rd, 2010, regardless of your previous reporting period.
The maximum compensation that can be claimed for the period April to June 2010 is $375.
Preparing the PST Return
Companies must charge PST (8%) on most products sold in Ontario (services are excluded). Returns are generally filed monthly. The return is due 23 days after the month end date. QuickBooks users can obtain additional information here.
The following information is required for the return:
Line 1—sales for the month
Line 2—PST charged
Line 5—compensation
Line 7—total Tax Due
Prepare a cheque payable to the Minister of Finance.
Returns can be mailed to:
Ontario Minister of Finance
Ottawa Tax Office
1400 Blair Place, Suite 300
Ottawa ON K1J 9B8
Line 5 - Compensation
If line 2 is $20 or less, deduct the whole amount.
If line 2 is between $20 to $400, deduct $20.
If line 2 is $400 or more, deduct 5% of line 2.
The maximum compensation per year (from April 1 to March 31) is $1,500.
Retail Sales Tax (Ontario) Site (http://www.rev.gov.on.ca/english/taxes/rst/)
Special Instructions for PST on Computer Hardware/Software/Internet Services (PDF)