SB Partners


Retailers provide jobs and centre of commerce that keep our economy humming. Retailers are concerned with issues such as technological innovation, logistics, global competition, price pressures, labour costs and changing customer preferences. Yours is a changing industry, and you need the support of professionals with the experience and insight to help you achieve results.

As a retailer, your concerns are unique to your industry. Whether you’re a small family-owned shop or a privately owned national chain, you will benefit from the knowledge and expertise of our team of professionals. SB Partners can support you in areas including business valuations, succession and estate planning, corporate reorganizations, and U.S. tax services.

A retailer has strong links to the community it serves. Like you, SB Partners wants to enrich our community. We share your community-mindedness, and we can help your operation take steps now to support the community into the future.

Harmonized Sales Tax in Ontario

On July 1, 2010 the Ontario Retail Sales Tax (RST) will be combined with the federal Goods and Service Tax (GST) to create a federally administered Harmonized sales tax (HST). The HST would have a combined rate of 13% of which 8% would be the provincial portion and 5% would be the federal portion. The HST, except for some exceptions, would generally use the same rules and tax base as the GST.

What does this mean to the consumer and retail industry

  • Many costs currently borne by this sector, including computers, furniture and equipment, promotional materials and delivery vehicles are subject to unrecoverable RST. Under the HST, this sector will be able to recover the HST paid by claiming input tax credits on their GST/HST return.
  • In respect to sales, most goods sold to customers are currently taxable under the RST and will continue to be so under the HST. However, the HST will tax a broader range of services and retail service providers will see an increase in the tax applied to their services.
  • Ontario is providing for a point-of-sale rebate on books, children’s clothing and footwear, children’s car seats and car booster seats, diaper and feminine hygiene products.
  • Systems businesses now used to comply with the GST will need to be modified to handle the HST including a modification to distinguish sales of items eligible for the point-of-sale rebate from other fully taxable items. Modifications will include accounts receivable and billing and POS systems and well as accounts payable.
  • The HST will mirror the GST system with some differences. During the first eight years of the tax, business with taxable sales in excess of $10 million, will need to modify their systems to deal with the restrictions in claiming input tax credits for certain categories of expenditures, including energy, other than for producing goods for sale, telecommunications, food, beverage and entertainment and road vehicles weighing under 3,000kg.
  • Retail sales businesses and service providers should also plan and modify their systems to deal with the removal of RST from costs.
  • Consider postponing certain major purchases until after the implementation of HST. This may result in a tax savings.
  • Service providers should review contracts with buyers to ensure they can contractually add on the provincial component of the HST to their prices.

Next Steps

Talk to our Retail Practice Group:

HST is here on July 1st - Be prepared with our free guide
What our Clients Say

Joanne Pellegrino, Accountant, Izumi Outdoors Inc.

"In the three years that Ive been dealing with SB Partners I have always found them to be courteous, thorough and professional. Their work on our annual statements and tax returns is exceptional and their expertise makes my job a whole lot easier."