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HST for Ontario Groomers

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  • HST for Ontario Groomers

    Quick question for the groomers from Ontario. I'm going to be opening my new shop within the next month and I'm trying to figure out my prices. Just wondering what current groomers will be doing when the new harmonized sales tax comes into effect July 1, 2010. Will you be adding it to your current grooming prices or do you already include the GST/PST? I'm not sure if I should just charge the 5% GST and then in July charge the 13% or if I should just charge the 13% now. What do you think? it's really going to increase the cost of grooming for those that don't currently charge the PST. Any help you can give me would be wonderfull.

  • #2
    I currently charge the 5% GST on the groom price. Currently, we do not charge PST on services, only goods. On July 1st, I'll have to charge the 13% HST on the groom price. Get your GST/business number now and start collecting GST when you open. This will give you a chance to get familiar with the routine, so it won't be a big change for you on July 1st. DO NOT try to collect the HST until July 1st. I already have people grumbling about the impending tax increase. I make sure it's not included in the price, just to keep it clear that it's not MY money, but going to the government.

    So, when asked the price for a groom I will quote the cost of the groom plus tax. For example, it will cost $50 plus tax. If you are planning on giving any discounts, be sure to take the discount off the pre-tax amount, then add the tax to the subtotal.

    Hope this helps.
    "The more that you read, the more things you will know. The more that you learn, the more places you’ll go." ~Dr. Seuss

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    • #3
      just found this thread

      Trying to get caught up, I've been busy kickboxing lately! Talk to an accountant, you only have to charge GST after you have made over $30,000 a year. If your business is new, you may not have to charge it until next year. Don't register until you have to, the longer you can put it off the better!

      Your accountant can also advise you as to what method you can use to determine your GST/HST tax owing, I use the "quick method" and don't have to keep track of the GST/HST on my purchases

      Starting July 1st, I have to start charging the Ontario HST of 13% instead of just the GST of 5%.

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      • #4
        It's the same with me

        Right now, we say that we include the taxes in the price. Our customers aren't going to be happy when there's a 13% increase to their animal's grooming.

        Needless to say, we're a bit worried.

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        • #5
          I have my best friend , who is an accountant, looking into info on taxes for me. She did confirm that you DO NOT have to collect GST unless you have made over $30 000. Also, you CANNOT collect GST unless you are registered and have a GST number. She also informed me that if you run your business out of your home you can claim some of your utility expenses by using the square footage of your shop as part of the calculation. I will let you all know once she gets back to me with all the info!

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          • #6
            Ditto for me. I currently charge the 5% GST and have informed my clients that as of July 1st I will have to charge HST so there will be an 8% increase. Also as previously said, you are a new business so until you reach that 30,000.00 mark in your calendar year of operating you do not have to worry about it. Do not start collecting the HST unless you are prepared to register for your HST account as that will be illegal.
            I am a home based business and have an accountant do all my year end and yes you can take a percentage of your home expenses as a write off as well as claim back some of the GST you have paid out.
            But again, if you are a new business then you haven't reached the 30,000.00 mark in a calendar year so you don't have to worry about it until you do.

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