New HST Legislation to take effect July 1st

Legislation to enact the harmonized sales tax (HST) has been passed by the Governments of Canada and Ontario. As of July 1, 2010 the HST will be applied on most supplies of goods and services made in Ontario at a rate of 13%, consisting of the 5% federal portion and an 8% provincial portion.

 

All orders placed prior to July 1, 2010 but delivered and invoiced after that date will be subject to HST.  All merchandise returns processed on July 1st or later for orders billed prior to this date will be refunded based on the applicable taxes at the time the order was originally billed.

 

Dye & Durham (Basics) is a distributor of office products.  As a distributor under the new HST system we will be charged the same amount of tax to purchase the products we sell to our customers and will be eligible for the same amount of tax rebates as under the GST/PST system.  The companies that manufacture the products we sell will be receiving tax reductions on the raw materials they purchase to manufacture their products.  Cost savings to Dye & Durham (Basics) will only occur if these manufacturers choose to reduce their prices to us.  We are not anticipating these types of price reductions from our suppliers and as such we would like to advise our customers that we anticipate that the prices we charge for office products will remain the same.

 

Should you have any questions regarding how the HST will affect your purchases from Dye & Durham (Basics) please do not hesitate to contact us.

 
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