Hst Tax Calculator Ontario 2017

Ontario's Harmonized Sales Tax (HST) is a value-added tax that applies to most goods and services sold in the province. This calculator helps you determine the HST amount for purchases and sales in 2017.

What is HST in Ontario?

Harmonized Sales Tax (HST) is a single sales tax that replaces Ontario's previous system of sales tax and goods and services tax (GST). It was introduced in 2010 and applies to most goods and services sold in Ontario.

The HST rate is applied to the selling price of taxable goods and services. The rate varies depending on the type of product or service being sold. Businesses must collect HST from their customers and remit it to the government.

HST is different from the Goods and Services Tax (GST) that applies in other provinces. In Ontario, the HST rate is applied to both the sale price and the purchase price of goods and services.

How to Calculate HST

To calculate the HST amount for a transaction, you need to know the selling price of the goods or services and the applicable HST rate. The formula for calculating HST is:

HST Amount = Selling Price × (HST Rate / 100)

For example, if you sell a product for $100 with an HST rate of 13%, the HST amount would be $13.

When purchasing goods or services, the HST is typically included in the final price. To determine the pre-tax amount, you can use the following formula:

Pre-Tax Amount = Final Price / (1 + (HST Rate / 100))

HST Rates in 2017

In 2017, Ontario had the following HST rates for different types of goods and services:

Standard rate: 13%
Zero-rated goods and services: 0%
Exempt goods and services: Not subject to HST

The standard HST rate of 13% applied to most goods and services sold in Ontario. Some goods and services were zero-rated, meaning they were subject to HST but the rate was 0%. Other goods and services were exempt from HST entirely.

Calculation Examples

Example 1: Calculating HST for a Sale

Suppose you sell a product for $200 with an HST rate of 13%. The HST amount would be calculated as follows:

HST Amount = $200 × (13 / 100) = $26

The total amount the customer would pay would be $200 + $26 = $226.

Example 2: Determining Pre-Tax Amount for a Purchase

If you purchase a product with a final price of $150 and know the HST rate is 13%, you can calculate the pre-tax amount as follows:

Pre-Tax Amount = $150 / (1 + (13 / 100)) ≈ $131.58

The HST amount paid would be $150 - $131.58 = $18.42.

Frequently Asked Questions

What is the difference between HST and GST?: HST is a single sales tax that replaces Ontario's previous system of sales tax and GST. HST applies to both the sale price and purchase price of goods and services in Ontario, while GST applies only to the sale price in other provinces.
What is the standard HST rate in Ontario?: The standard HST rate in Ontario is 13%. However, some goods and services may be zero-rated or exempt from HST.
How do I calculate HST for a purchase?: To calculate the HST amount for a purchase, divide the final price by (1 + the HST rate). For example, if the final price is $100 and the HST rate is 13%, the pre-tax amount is $100 / 1.13 ≈ $88.42.
Are there any goods or services that are exempt from HST?: Yes, some goods and services are exempt from HST in Ontario. These include basic foodstuffs, prescription drugs, and certain medical services. A complete list of exempt goods and services can be found on the Ontario government website.
How do businesses remit HST to the government?: Businesses must remit HST to the government through the Ontario government's tax collection system. The frequency of remittance depends on the business's tax obligations and the amount of HST collected.