Author Topic: Ontario taxes (Read 3883 times)

Rayman · « **on:** July 04, 2005, 01:45:56 pm »

I have seen some posts on here regarding prices, they show the purchase price and the final price after taxes. To me it looks like they are only paying only one tax (either provincial or federal). My question to anyone from Ontario is do you pay both PST and GST on your tubs??

Ray

Hot Tub Forum · « **on:** July 04, 2005, 01:45:56 pm »

MRB · « **Reply #1 on:** July 04, 2005, 02:09:28 pm »

My dealer did not charge PST. Your dealer should only collect GST in Ontario.
However, the provincial government complicates the issue through bloated and beaurocratic policy makers. Take a look for yourself and see how they've managed to do this.
http://www.trd.fin.gov.on.ca/userfiles/page_attachments/Library/3/Rsie_In43.pdf?N_ID=3

fletch49 · « **Reply #2 on:** July 04, 2005, 02:12:19 pm »

I think our government is trying to figure out a way to charge tax on tax.

I paid both taxes on my spa, however, I did receive a quote from a Jacuzzi dealer and it only included the one tax...federal GST. I suspect if we pay full pop on vehicles, we pay both taxes on spa's.

Rayman · « **Reply #3 on:** July 04, 2005, 02:12:30 pm »

Very interesting, on a $9500 tub that amounts to $760. Anyone else out there get charged PST on there tub?

JcDenton · « **Reply #4 on:** July 04, 2005, 02:13:54 pm »

I paid both PST and GST on our tub here in Manitoba.

Jc

bosco0633 · « **Reply #5 on:** July 04, 2005, 02:14:10 pm »

I got my tub taxes in, which just means they raised it the 8 % and charged me anyway. I believe that you only pay GST. This is the tax that will never go away, it was suppose to wasnt it? I love taxes.

fletch49 · « **Reply #6 on:** July 04, 2005, 02:37:22 pm »

Quote

http://www.trd.fin.gov.on.ca/userfiles/page_attachments/Library/3/Rsie_In43.pdf?N_ID=3

Ok - talk about a grey area. I think we all paid PST on the spa...it's just not listed on the invoice. The RST fact sheet indicates that the dealer still pays PST, but is not to list it on the consumer bill of sale?

Did I miss something on that RST fact sheet?

MRB · « **Reply #7 on:** July 04, 2005, 02:40:56 pm »

In Ontario, you should only pay GST. If you've been charged PST, your dealer is not looking after you.

fletch49 · « **Reply #8 on:** July 04, 2005, 02:50:35 pm »

Quote

In Ontario, you should only pay GST. �If you've been charged PST, your dealer is not looking after you.

Here is a quote from the website:

"The dealer pays RST on the cost of the hot tub or spa and on any installation materials used for the contract. RST must not be charged or shown on the invoice to the customer."

MRB - You're right...you should not see a PST charge....BUT I'm sure the price they charge you includes an extra margin to offset �the PST they are paying.

Games.

HotTubMan · « **Reply #9 on:** July 04, 2005, 03:12:49 pm »

If your dealer did not pay the PST, when he gets auditted he will.....and will have to pay a lot of money all of a sudden and go out of business.

I have sold hot tubs in Ontario for over 4 years and yes the government must receive PST on the purchase. It is either built into the cost or the dealer will pay later.

This is not a pool. This is not an addition to the house. This is a portal spa. If the tub is built into the ground the dealer can get away without charging PST.

Into a deck does not count as into the ground.

nicker · « **Reply #10 on:** July 04, 2005, 03:52:50 pm »

now why did you have to bring up that word?

I think that is why I bought my tub in the first place so I soak in bliss and try to forget about how much tax we pay! Or maybe thats why I drink so much beer

wetone · « **Reply #11 on:** July 05, 2005, 09:02:25 am »

In Ontario PST & GST is to be added to the price if the spa is delivered and dropped in the driveway or picked up by the customer.

PST is to be included in the price on the dealer cost of the spa if the spa is delivered and set in the back yard, as per the Ministry of finance auditor that went through the last 4 years of our books 4 weeks ago.

We had always charged both taxes on retail as per our accounted. But the ministry of finance took a hard line on spas and classed them as permanent fixtures.

We challenged them on their ruling. Our position was that spas are classed as portable devises as defined by the ETL-c, CSA & UL-c listing �Portable spas�. The Ministry of finance had a hearing we presented our case and lost.

The consumer does benefit from this in a way; PST is only paid on the dealer cost of the spa.

Rayman · « **Reply #12 on:** July 05, 2005, 10:06:26 am »

It is very clear that if the tub is placed on a concrete slab there will be no RST charged or shown on the invoice.

Cgar · « **Reply #13 on:** July 05, 2005, 02:01:42 pm »

That's right, as the consumer you will not be charged PST on the retail amount. The dealer, however must pay PST on the wholesale cost of the spa. This amount will then be included in the overall 'pre-tax' retail price of the spa. GST must then be charged on the retail amount.

So, in effect you pay both taxes, but one is paid on the wholesale cost of the spa (and is not itemized), while the other is paid on the full retail amount (GST).

This approach is not determined by the dealer. Rather, it's the 'PST people' who mandate it. So, I can't see how it reflects poorly on the retailer in any way. The auditor (and her manager) made us do it.

wetone · « **Reply #14 on:** July 05, 2005, 04:43:05 pm »

Quote

It is very clear that if the tub is placed on a concrete slab there will be no RST charged or shown on the invoice.

There is to be no PST charged or shown on the retail price of the spa. The PST has to be included in the retail price.

Example: (cost of product) + (8%PST calculated on cost of product) + (dealers over head) = retail price

The consumer pays the PST on the cost of the product which the dealer submits to the Ministry of finance.

http://www.trd.fin.gov.on.ca/userfiles/page_attachments/Library/3/Rsie_206Mar04R.pdf?N_ID=3

Hot Tub Forum · « **Reply #14 on:** July 05, 2005, 04:43:05 pm »

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