Posts Tagged ‘place of supply rules hst’

Is your POS software HST ready?

New changes for HST (Harmonized Sales Tax) are coming into effect on July 1st, 2010 in British Columbia, but the HST changes affect retailers in all provinces across Canada, not just BC retailers.  Many retailers running computerized point of sale systems are wondering if their POS software will be able to handle the new dynamic HST tax structure.

There are a few challenges involved in making HST work with POS software and AmberPOS is ready to handle all the HST changes automatically.

Province Specific HST Tax Rates

The first challenge with the new HST tax is that it is a dynamic tax that is customer location specific.  Meaning, the new HST tax rates will be different for people located in different provinces.

For example, if you are a retailer located in BC, when you sell something to a customer who resides in BC, you will have to charge them 12% for HST.  However, when you are selling something to a customer in Ontario, you will have to charge them 13% for HST.  To make things even more complicated, if you’re selling to a customer in Alberta, you will have to charge them 5% HST.

In this way, HST is a dynamic tax that is dependent on the location of the customer, not just the retailer.  Meaning, HST is not based on just one single rate, but on a different rate for each province.

Even provinces which are not switching to the new HST system will have to charge HST to customers in provinces which do have HST.  For example, a retailer in Alberta will have to charge HST to their BC customers.  This is especially important for retailers with online web stores that ship product outside of their province.

AmberPOS is fully ready for the new HST changes coming into effect and our software automatically calculates the proper HST to charge your customers, so that you and your staff don’t have to worry about making that decision manually at each transaction.  This speeds up client processing and eliminates undercharging/overcharging clients by taking the decision away from the hands of the clerk who may not fully understand HST rules.

Point-of-Sale (POS) Rebates for British Columbia HST

In addition to province-specific HST tax rates, your POS software also has to take into effect Point of Sale Rebates for HST.

What is a point-of-sale HST rebate?

Point of sale rebates are similar to PST exemptions under the current tax system.  Certain items (such as the ones listed below) will get an instant rebate during checkout which will reduce the amount of HST payable by the purchaser by the 7% (in BC) provincial portion of the HST.  This means that on items such as books, purchasers will only pay 5% HST.

Which items have point of sale HST rebates?

POS rebates for HST will apply to certain designated items such as:

• motor fuels
• books
• children’s clothing
• children’s footwear
• children’s diapers
• children’s car seats and car booster seatsfeminine hygiene products

AmberPOS point of sale software will allow you to provide HST POS rebates for such items automatically so there is no memorization required for your staff members.

HST Related Resources

• Place of Supply Rules for HST
• GST / HST Info Sheets
• GST / HST Notices
• HST Publications

Is it time to upgrade your POS software?

Automatic integrating of features such as HST compatibility is just one example of the benefits of running our state-of-the-art AmberPOS software.

AmberPOS is constantly being updated and improved based on the feedback we receive from our retail customers, and based on the ever increasing demands of the retail industry.  By choosing AmberPOS, you are partnering with a world-class Point of Sale software provider who understands your needs.

If you have any questions about HST and point of sale systems, or to book a free demo and consultation to see if AmberPOS is right for your business, please contact us today.

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