Bottom Line HST Impact on Purchases for Business in BC

Example: Purchase of a computer on or after July 1st 2010    

Small Retail Business

Medical Practice

Current GST Rules

New HST Rules

Current GST Rules

New HST Rules

1,000.00

1,000.00

1,000.00

 

1,000.00

70.00 PST

 

70.00 PST

 


50.00 GST


120.00 HST


50.00 GST

 

120.00 HST

Net Amt including tax 1,120.00

Net Amt including tax 1,120.00

Net Amt including tax 1,120.00

Net Amt including tax

1,120.00

Input tax credit (50.00)

Input tax credit (120.00)

   

Net Cost to entity 1,070.00

Net Cost to entity 1,000.00

Net Cost to entity 1,120.00

Net Cost to entity 1,120.00

 

Savings (Cost)

70.00

 

0.00

 

0.00