HST

Question 1

The GST/HST is a ___________ tax that applies to which two things in Canada? (3)

Answer 1

GST/HST is FEDERAL
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applies to:
GOODS MADE
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SERVICES SUPPLIED

Question 2

What is the GST rate and what is the rate of Ontario’s retail sales tax, which combined make up the 13% HST?

Answer 2

GST is 5%

Ontario’s RETAIL SALES TAX is 8%

Question 3

If you massage a first nations patient on the reserve do you charge the sales tax?

Answer 3

NO, however

if massage occurs off reserve, CHARGE 13%

Question 4

The consumer pays the tax, does it then become your money?

Answer 4

NO,

RMT is responsible for collecting and remitting it to the government

Question 5

Name the 5 provinces massage is regulated in?

Answer 5

1. ONTARIO
2. BC
3. NEWFOUNDLAND LABRADOR
4. NEW BRUNSWICK
5. PRINCE EDWARD ISLAND (newest)

Question 6

Which 2 professions were exempt from HST as of Feb 2014, which gives hope for MT to follow?

Answer 6

NATUROPATHY and ACUPUNCTURE

Question 7

At what level of income do RMTs need to become registered to start charging HST?

Answer 7

$30 000 +

below this, RMTs may choose

Question 8

How should you determine whether your income is above $30 000?

Answer 8

CALCULATE QUARTERLY INCOME
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ADD PREV 3 QUARTERS
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SEE IF GREATER THAN 30 000

Question 9

What is the difference between HST exempt and goods that are zero-rated (or, taxable at 0%)?

Answer 9

HST EXEMPT= do not charge HST, DON’T claim ITCs

ZERO-RATED= do not charge HST, DO claim ITCs

Question 10

List examples of Goods and Services that are:

1. Exempt from HST
2. Taxable at 0%
3. Taxable at 5%
4. Taxable at 13%

Answer 10

1. EXEMPT - residential housing/rentals, music lessons, med/dental services, education, insurance, daycare
2. 0% - basic groceries, fish, farm equip, prescriptions, medical devices, fem products
3. 5% - children’s clothing, food under $4, air travel CA to USA, books, newspapers, car seats
4. 13% - most everything else

Question 11

Does employment income count towards the $30 000 income level where an RMT must then charge HST?

Answer 11

NO,

only self employed income

Question 12

Who do you charge HST to?

Answer 12

THE PERSON PAYING YOU

client or clinic owner

Question 13

How should you charge a clinic owner?

Answer 13

INVOICE

Question 14

When determining whether you need to ___________ to charge HST, you consider only YOUR income.

Answer 14

REGISTER

Question 15

If HST has been charged by the clinic owner, how should you calculate the split?

Answer 15

REMOVE TAX FIRST

if RMT charges HST, add tax to total after split

Question 16

First you calculate any HST incurred to operate your business, then _________ it from the HST you collected, and _________ the balance.

Answer 16

DEDUCT
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REMIT

Question 17

You register to charge the HST by getting what?

Answer 17

BUSINESS NUMBER

Question 18

Where must you include your business number day to day?

Answer 18

INVOICES and RECEIPTS

Question 19

Do you file a return if there was no activity within the period?

Answer 19

YES, A NIL RETURN

Question 20

How long must we keep all receipts and invoices?

Answer 20

6 YEARS