The impact of the HST on BC's non-profit community social services sector : Impact of the Harmonized Sales Tax on BC's non-profit community social services sector

A broader examination of the implications for businesses, governments and consumers will help to determine the overall advantages and disadvantages of the HST in British Columbia: Consumers: The HST is predicted to result in a permanent 0.7% increase in the consumer price index in B. C. (TD Bank Financial Group, Special Report, September 18, 2009) due to a 7% tax application on a wider variety of [...] The Atlantic provinces adopted the HST in 1997 and information is being gathered to learn about the transition phase, the implications for businesses and non-profits, and exemptions and rebates. [...] The Federation of Community Social Services (FCSS) is recommending the following next steps to help prepare the sector for the upcoming tax reform: 1. Convene a working group for the sector with non-profit leaders, including a tax lawyer and accountant; 2. Direct the working group to undertake activities to assess the impact of the HST on the third sector, such as formulating scenarios within the [...] Under the new HST system, the government will refund businesses the PST on items they buy to produce most of their goods and some services, in the form of 'input tax credits', thus contributing to lower production costs and ultimately reducing the overall costs of doing business for many industries. [...] The committee is pushing for eligible non-profits to be given a tax exemption number, to ensure point of sale rebates for certain items at the time of purchase, and explore issues such as what qualifies a non-profit for rebates, and the consistency of federal and provincial definitions of registered charities.