lo_pak

回復 4# Catpiano

In the old days, people used to pay cash without paying the HST. Right now, no way...

The Chinese restaurants are a bit better because they are cheap (comparatively) anyway, for those Cactus/KEG/Boathouse, it's a big hit... The long lineup is gone for regular weekend....

lo_pak

回復 30# sheep

Your example is confused. I believe in that case business can claim that back without the issue that you have mentioned... For goods that have to pay PST in the old days, no difference; For goods & service that don't need to pay PST previously, yes, you have to pay more in advance, but still, you can claim that back from the gov't. It's more like a cash flow problem instead because I know some small business sometime use up the tax portion as their normal cash flow running daily operation, which is not appropriate and unwise...

I just want to be clear and fair in this discussion, if you think I'm wrong you can point that out... Thanks!

HST/GST are basically tax neutual for business, it only affects terminal consumers.

lo_pak

回復 39# sheep

Your case study, assuming the cost of flowers (cost of goods sold) = $100, and you can only sell the goods for $50

Case 1: In the old days, assuming you need only pay GST @ 5.0%,

Purchasing: $100 x 1.05 = $100 (cost) + $5.0 (Tax Paid) = $105.0
Selling: $50 x 1.05 = $50 (price) + $2.5 (Tax Received) = $52.50
Net: $50 (worth of goods left on hand) + $2.5 (Tax redeemable back from gov't) = $52.50

Case 2: Nowadays, assuming you need to pay HST @ 12.0%
Purchasing: $100 x 1.12 = $100(cost) + $12.0 (Tax Paid) = $112.0
Selling: $50 x 1.12 = $50 (price) + $6.0 (Tax Received) = $56.0
Net: $50 (worth of goods left on hand) + $6.0 (Tax redeemable back from gov't) = $56.00

I just can't get what you want to mention in your post...

lo_pak

回復 42# Tinon

No, that $6.0 is redeemable... If the worth of remaining good is going to write off, it's the same in the old days as it is now.

lo_pak

回復 44# sheep

Admin fee is valid for PST, not GST I think...
And, for GST/HST reporting, you can choose between once a year, once a quarter, or even once a month. The HST refund should be received promptly.

lo_pak

回復 46# sheep

The biggest hit of HST goes to the servicing sector, which needs only collect GST (5%) in the old days but HST (12%) for now. It's not because they "finally" have to pay more tax, but rather, it's their customers (the terminal consumer, which is ultimately, the general public).

In your example of flowers, it's more likely because the promotion of HST, the customers (the terminal consumer) are less willing to purchase the flower more frequently. It turns out that there is an "increasing chance" for the $50.00 worth of unsold goods to be written off.

After having the HST for almost half a year in BC, in my observation as being a customer (the terminal consumer), for most goods that you have to pay PST and GST in the past, there's no difference as it is now. But, for servicing business like banking, accounting, legals, dining restaurants, sales agents, etc., as "customer" we will have to pay more tax. But for the business themselves, it's still tax neutual. As a general public, how usual do you use those services other than banking and dining out?

In addition, for real estates that worth more than $500-$600K (can't remember correct number), there will be a difference too.

lo_pak

回復 48# elan7e

It all depends on how much you earn. Remember there is a HST refund for people whose earning is at the 1st tax bracket. The refund money should roughly balance what you will pay, or a bit more. However, if you are at the 2nd level or higher, you will be suffered...

According to the idea of HST, it benefits business in the way that you can claim back more tax on equipment renewal or other hardware upgrade, which you cannot do in the old days. It may have bigger effects on big business but certainly not the small one. How often will a small business renew their machines if they are still losing money or tight on budget?? And, for the big companies, how can the gov't "estimate" the tax business save will turn out to hire more workers?? It's more like just a "wish"...

All in all, in conclusion:

1) for companies making profits, they are winners as it seems like there's a tax credit gov't will award you if you renew your machines, which increase your profitibility.
2) for small companies making no profits and will not upgrade their hardware, sorry, there's no difference and you are wasting the "credit".
3) for restauants, obviously it's a big hit because it decreases consumers' incentive to spend.
4) as a customer/general public, you have to pay more (but not too much) on your daily expenditure.

On the HST topic, if you ask me if I support the current HST or not, I will say "No".
If you ask me if the HST is lowered to 10%, I will say "Yes". Reason - Not contradicting, rather than wasting time and resource on the "dirty" debating of the politics, I will let that settle and move forward...

On the election, rather than voting between "Liberal" and "NDP", I will "go" and "throw in" a "blank" vote. Reason - I don't like "Liberal" in this regards and I'm disappointed for what they've done. However, on the other hand, I don't like "NDP" in all manners. Having a "blank" vote is not doing nothing, it shows that how many "middlers" like me are existing. When the parties are being elected, they will need to think about how to gather the attention of these "middlers" in the next next election.