Reverse Hst Calculator Ontario 2017

This calculator helps you determine the Reverse HST (Harmonized Sales Tax) amount for Ontario in 2017. The Reverse HST applies to certain transactions where the supplier is required to collect and remit HST on behalf of the customer.

What is Reverse HST in Ontario?

Reverse HST is a tax collection mechanism used in Ontario where the supplier is responsible for collecting and remitting HST on behalf of the customer. This applies to specific transactions such as:

Sales of goods to consumers where the supplier is required to collect and remit HST
Certain services provided to consumers
Sales of goods to businesses where the supplier is required to collect and remit HST

The Reverse HST rate in Ontario for 2017 was 13%. This means that when a supplier collects HST on behalf of a customer, they must remit 13% of the transaction amount to the government.

How to Calculate Reverse HST

The Reverse HST amount is calculated by multiplying the transaction amount by the Reverse HST rate. The formula is:

Reverse HST Amount = Transaction Amount × Reverse HST Rate

For example, if you have a transaction amount of $1,000 and the Reverse HST rate is 13%, the Reverse HST amount would be $130.

The supplier is then responsible for remitting this amount to the government. The customer is not required to pay the Reverse HST separately.

Note: The Reverse HST rate may vary depending on the type of transaction and the applicable tax laws. Always verify the current Reverse HST rate before making any calculations.

Example Calculation

Let's walk through an example to illustrate how to calculate Reverse HST in Ontario for 2017.

Scenario

You are a supplier in Ontario who has sold goods to a consumer for $500. The Reverse HST rate for this transaction is 13%.

Calculation Steps

Identify the transaction amount: $500
Determine the Reverse HST rate: 13%
Calculate the Reverse HST amount: $500 × 13% = $65

In this example, the supplier would be required to remit $65 to the government as Reverse HST.

Important: The customer does not pay the Reverse HST separately. The supplier is responsible for collecting and remitting the Reverse HST amount.

Frequently Asked Questions

What is the Reverse HST rate in Ontario for 2017?: The Reverse HST rate in Ontario for 2017 was 13%. This rate applies to certain transactions where the supplier is required to collect and remit HST on behalf of the customer.
Who is responsible for remitting Reverse HST?: The supplier is responsible for collecting and remitting Reverse HST on behalf of the customer. The customer does not pay the Reverse HST separately.
What types of transactions are subject to Reverse HST?: Reverse HST applies to specific transactions such as sales of goods to consumers, certain services provided to consumers, and sales of goods to businesses where the supplier is required to collect and remit HST.
How is Reverse HST different from regular HST?: Regular HST is collected from the customer and remitted by the supplier. Reverse HST is collected by the supplier on behalf of the customer and remitted by the supplier.
Can the Reverse HST rate change?: Yes, the Reverse HST rate may vary depending on the type of transaction and the applicable tax laws. Always verify the current Reverse HST rate before making any calculations.