On April 1st, BC Business will go from 12% HST to 5% GST and 7% PST. This video demonstrates how to set this up in System Five.
Duration 6min bctaxfinished.flv
The 7% provincial part of the HST would no longer apply. This means that the federal part of the HST, the 5% GST, would remain.
The transition to the 5% GST is effective April 1, 2013.
The general transitional rules would operate on the basis of the time at which tax becomes payable. You would pay the 5% GST on purchases of taxable goods, intangible property (such as rights), and services if
•the tax becomes payable after March 31, 2013, without having been paid before April 1, 2013; or •the tax is paid after March 31, 2013, without having become payable before April 1, 2013. If the tax becomes payable or is paid before April 1, 2013, the 12% HST would apply.
GST/HST on the consideration for a supply is usually payable the earlier of the day payment is made and the day the supplier issues an invoice. If there is an undue delay in issuing an invoice, GST/HST becomes payable when the invoice would have been issued if there had been no such delay. In addition, if either the date of an invoice or the payment date under a written agreement is earlier than the date the invoice is issued, GST/HST becomes payable on the earlier date.
For a supply of property by way of lease, licence or similar arrangement under a written agreement, GST/HST becomes payable the earlier of the date the payment is made and the date it is required to be made under the agreement.
If GST/HST is not otherwise payable by the last day of the calendar month after the calendar month in which any of the following events takes place, it becomes payable on that day:
•in the case of a sale of tangible personal property, other than a sale referred to below, the buyer acquires ownership or possession of the property; •in the case of a sale of tangible personal property on approval, consignment, sale-or-return basis or similar terms, the buyer acquires ownership of the property or re-supplies it to someone other than the seller; and •in the case of a supply under a written agreement for construction, renovation, alteration or repair of real property, or of a ship or other marine vessel when the work is reasonably expected to last more than three months, the work is substantially completed. The 12% HST would be payable where GST/HST becomes payable under these rules before April 1, 2013. The 5% GST would be payable where it becomes payable under these rules on or after April 1, 2013.