Ontario consumers and GST on hot tubs.

[PattiB]

Just wondering if anyone in  Ontario, Canada , who has purchased a hot tub, was charged RST or PST. 8%.  I read a thread about this at one point , but not sure of the circumstances.  I am almost sure I am being charged the RST. I have a call into the dealer right now.  The Ontario Government website reads that if the hot tub is ordered and delivered directly onto a concrete slab and that is it's permanent site, than the dealer has to pay the tax but the consumer doesn't . It should not be shown on an invoice. Just wondering since that's a fair bit of change and would make a difference in the final price. Thanks

[Rayman]

no PST is to be charged, it will be added into the purchase price.  Either way you pay.

Ray

[PattiB]

Thank you for your reply Rayman.  

When you walk into a  hot tub store and the sign reads $6995.00 plus tax. and the total is $9114.00, you can assume that you are paying PST and GST.  From what we are hearing, only gst is to be paid. How can the dealer legally do this?  Obviously, both taxes are being added and I should have confronted the dealer right there on the spot.  Just doesn';t seem right to us.  Oh well.... live and learn.... thanks again

[In Canada eh]

 The Ontario Government website reads that if the hot tub is ordered and delivered directly onto a concrete slab and that is it's permanent site, than the dealer has to pay the tax but the consumer doesn't .

Patti,

      You should not be charged the PST.  The dealer should pay PST on their cost before they take their mark up.  The only tax you should pay is the GST 6%.  In sense you are still paying it,  your just paying a smaller amount and its hidden in the price,  similar to the old federal manufacturing tax.

     Our dealer did not charge us PST and yours shouldn't either!

[Gomboman]

Can I ask what RST and PST is? Is this some type of Canadian tax?

[In Canada eh]

Gomboman,


        Its all part of the lovely reason why we Canuks complain that we are taxed to death


GST stands for Goods and Services tax and is applied to all goods and any business that supplies a service at the rate of 6%


PST stands for Provincial Sales Tax, similar to your state tax and is applied to all purchases at 8%


No that's not a misprint 14% applied to just about everything

[Gomboman]

Gomboman,


        Its all part of the lovely reason why we Canuks complain that we are taxed to death


GST stands for Goods and Services tax and is applied to all goods and any business that supplies a service at the rate of 6%


PST stands for Provincial Sales Tax, similar to your state tax and is applied to all purchases at 8%


No that's not a misprint 14% applied to just about everything

In_Canada_eh,

Ouch, I'll stop complaining about our 7.75% percent tax in California.  

[In Canada eh]

Ouch, I'll stop complaining about our 7.75% percent tax in California.  

Yeah it really sucks if your buying a $100,000 Mercedes

[wetone]

Thank you for your reply Rayman.  

When you walk into a  hot tub store and the sign reads $6995.00 plus tax. and the total is $9114.00, you can assume that you are paying PST and GST.  From what we are hearing, only gst is to be paid. How can the dealer legally do this?  Obviously, both taxes are being added and I should have confronted the dealer right there on the spot.  Just doesn';t seem right to us.  Oh well.... live and learn.... thanks again

There seems to be more then 14% tax added to your total. $6995 + 14% should be $7974.30.
Did they add a delivery fee or any other charges?
Dealer should only be charging GST. If they charged you PST and showed the amount on the
Invoice you can apply for a refund from the Ministry of Finance for the full amount.

[Rayman]

It's more complicated than "they can't charge you the tax".  If the spa is "Delivered" not picked up, and placed on a "Concrete pad" or other stationary decking then it is considered as permanent and no PST can be shown on the invoice.  The pst is there but just on the dealer purchase price and is included in the price and then you are getting charged GST on the PST which is not nice.  If you sit down and work out the price both ways it usually works out the same.  The confusion would be endless if they were to show 2 prices one delivered to a fixed deck and one picked up.  

I have a Headache now, bye

Ray

[slimchance]

It's more complicated than "they can't charge you the tax".  If the spa is "Delivered" not picked up, and placed on a "Concrete pad" or other stationary decking then it is considered as permanent and no PST can be shown on the invoice.  The pst is there but just on the dealer purchase price and is included in the price and then you are getting charged GST on the PST which is not nice.  If you sit down and work out the price both ways it usually works out the same.  The confusion would be endless if they were to show 2 prices one delivered to a fixed deck and one picked up.  

I have a Headache now, bye

Ray

My tub will be recessed into my deck on 30” patio stones.  It is definitely permanent but not on a slab.  I guess I’m SOL