With the introduction of HST effective July 1, 2010, the Ontario government is providing a one-time transition support to assist small businesses make the necessary changes to their systems to collect the HST. Systems that may require changes include:
- point of sale terminals, cash registers, computer software and websites
- invoices, purchase orders and expense reports
- the ability to track restricted ITCs for large businesses
Who qualifies for the transition support?
In order to qualify for the transition support, an eligible business must:
- not be a listed financial institution
- carry on business in Ontario and be a GST/HST registrant on July 1, 2010
- have premises in Ontario where it conducts its business
- have GST/HST taxable supplies of less than $2 million dollars in a given 12 month period ending on or after January 1, 2009
How much is the transition support?
Eligible businesses will qualify for a transition support of up to $1,000 as follows:
- Businesses with taxable revenues of up to and including $60,000 will receive a transition support payment of $300
- Businesses with taxable revenues of over $60,000 and up to and including $200,000 will receive a transitional support payment equal to 2% of their taxable revenues for the quarter
- Businesses with taxable revenues of over $200,000 and less than $2 million will receive a transitional support payment of $1,000
When will the payments for the transition support be made?
The Ontario ministry will automatically generate and send cheques to all eligible businesses commencing in late fall of 2010 once the taxable revenue information for a 12 month period ending on or after January 1, 2009 has been provided by CRA.
Should you have any questions concerning the above, please contact Richard Rizzo, Senior Tax Manager on 905 633 6332.