Retail Sales Tax
ONTARIO RETAIL SALES TAX
Permanent Rebate on Building Materials for Farmers
On March 31, 1999 the Government announced a one-year extension on the temporary rebate for retail sales tax paid on building materials purchased by Farmers. The Government will announce legislation to make this program permanent, effective April 1, 1999. The program eligibility rules would remain unchanged.
Expanding Retail Sales Tax Relief for Farmers
Regulation amendments are also proposed to expand the exemptions available to farmers. Effective May 5, 1999, farmers would also be able to purchase the following items exempt of retail sales tax by providing their suppliers with a purchase exemption certificate:
Antifreeze;
Calcium Chloride;
Forms for recording animal weight and other data;
Lubricating oil and grease; and
generators.
CEEDA recommends that Dealers ensure their farmer customer is fully aware of the liability clause contained in the Purchase Exemption Certificate, which reads, "Every person who makes a false statement on this certificate or misuses this certificate is liable, if convicted, to a fine of not less than $500 and not more than $10,000 plus an amount of not more than double the amount of the tax that should have bee paid or that was evaded, or to imprisonment for a term of not more than two years, or to both." It is a good idea that you have the farmer customer initial the clause verifying that he has read same and understands it fully.
NEW BRUNSWICK (NB)
New: ............................................................. Exempt
Used: ............................................................. Exempt
Over-The-Counter: ........................................ Exempt – harmonized tax @ 14%
Installed Repair Parts: ................................... Exempt – harmonized tax @ 14%
Service Labor: ............................................... Exempt – harmonized tax @ 14%
Warranty Service: ......................................... Exempt – harmonized tax @ 14%
Warranty Labor: ............................................ Exempt – harmonized tax @ 14%
Goods and Services Tax (GST @ 6%) does not apply to tractors over 60 pto hp, and is zero-rated for nearly all agricultural equipment
NEWFOUNDLAND (NL)
New: ............................................................. Exempt
Used: ............................................................. Exempt
Over-The-Counter: ........................................ Exempt – harmonized tax @ 14%
Installed Repair Parts: ................................... Exempt – harmonized tax @ 14%
Service Labor: ............................................... Exempt – harmonized tax @ 14%
Warranty Service: ......................................... Exempt – harmonized tax @ 14%
Warranty Labor: ............................................ Exempt – harmonized tax @ 14%
Goods and Services Tax (GST @ 6%) does not apply to tractors over 60 pto hp, and is zero-rated for nearly all agricultural equipment
NOVA SCOTIA (NS)
New: ............................................................. Exempt
Used: ............................................................. Exempt
Over-The-Counter: ........................................ Exempt – harmonized tax @ 14%
Installed Repair Parts: ................................... Exempt – harmonized tax @ 14%
Service Labor: ............................................... Exempt – harmonized tax @ 14%
Warranty Service: ......................................... Exempt – harmonized tax @ 14%
Warranty Labor: ............................................ Exempt – harmonized tax @ 14%
Goods and Services Tax (GST @ 6%) does not apply to tractors over 60 pto hp, and is zero-rated for nearly all agricultural equipment
ONTARIO (ON)
New: ............................................................. Exempt
Used: ............................................................. Exempt
Over-The-Counter: ........................................ Exempt
Installed Repair Parts: ................................... Exempt - GST
Service Labor: ............................................... Exempt - GST
Warranty Service: ......................................... Exempt – Manufacturer charged GST
Warranty Labor: ............................................ Exempt – Manufacturer charged GST
Goods and Services Tax (GST @ 6%) does not apply to tractors over 60 pto hp, and is zero-rated for nearly all agricultural equipment.
If a farmer has a GST number and has paid GST he can claim that amount back.
Retail Sales tax (RST) @ 8% Farmers do not have to pay if they sign a purchase exemption certificate or present their Farmer ID card. For RST purposes, a “person engaged in the business of farming” means a person who undertakes farming with a reasonable expectation of profit. Persons engaged in the business of farming are entitled to exemptions from RST on their purchase of eligible goods (i.e. farm implements, farm machinery, farm equipment, farm supplies, agricultural products, building materials and repair parts), services and insurance that are to be used exclusively in the business of farming. If this tax is paid in error, the farmer can claim a refund of the tax.
** Riding lawnmowers used to mow grass are taxable to farmers. Lawn & garden tractors with facilities for attachments, such as Power Take-off units, 3-point hitch, hydraulic outlet, etc., may be bought exempt by farmers if these tractors are used to till soil, maintain crops or to pull small trailers or other farm equipment. If there are no facilities for attachments, the lawn and garden tractors are taxable.
PRINCE EDWARD ISLAND (PE)
New: ............................................................. Exempt
Used: ............................................................. Exempt
Over-The-Counter: ........................................ Exempt – GST only
Installed Repair Parts: ................................... Exempt – GST only
Service Labor: ............................................... Exempt – GST only
Warranty Service: ......................................... Exempt
Warranty Labor: ............................................ Exempt
Goods and Services Tax (GST @ 6%) does not apply to tractors over 60 pto hp,