The revised 2010 Tax Compliance Country Guide is now available for your use and includes a second update for Canada. As with the previous version, this chapter was written and signed by KPMG. This update better clarifies the Canadian requirement mappings to the Ariba solution and speaks to the Canadian tax changes in 2010 and 2011 described below which the Ariba solution supports.
If you are interested in eInvoicing in Canada, please contact your Ariba representative for the latest version of Ariba's Country Guide and the latest version of our business rule spreadsheet:
Overview of the sales tax rates (GST/HST/PST)
Rates applicable as from July 1, 2010:
Before July 1st, 2010, Provincial Sales Taxes (PST) are collected in the provinces of British Columbia, Saskatchewan, Manitoba, Ontario, Quebec (called QST), and Prince Edward Island. However as it is shown on the map above, as of July 1st, 2010, British Columbia and Ontario will harmonize with the Federal GST as Nova Scotia, New Brunswick and Newfoundland/Labrador have done previously.
Furthermore, Nova Scotia has raised the provincial component of its tax to 10% increasing their total HST to 15%. This new rate is effective on July 1st, 2010 (consequently, as from July 1st 2010, the HST rate of Nova Scotia is different from the other two previously harmonized provinces that have a 13% rate).
Finally, Quebec levies its QST on the total of the selling price plus the GST. For your complete information, the 2009 Québec budget also proposed an increase to 8.5% effective January 1, 2011 and the 2010 budget proposes an increase to 9.5% effective January 1, 2012.