Information for Consumers
General
1. What is the new rate of GST?
The rate of the GST is to be reduced from 7% to 6%.
2. When are the new rates of GST effective?
The new rates of GST are effective July 1, 2006.
3. When do I pay GST at the new rates?
Generally, you will pay GST at the new 6% rate for purchases of taxable goods and services in the following circumstances:
- If GST becomes payable on or after July 1, 2006, without having been paid before that day, or
- If you pay GST after July 1, 2006, without it having been payable before that day.
If you pay GST before July 1, 2006, or if the GST becomes payable before July 1, 2006, the rate of 7% GST will apply.
4. When is GST payable?
GST on the amount payable for the purchase of a good or service is usually payable the earlier of the day payment is made and the day the supplier issues an invoice. If the service is provided prior to July 1, 2006 but the invoice is issued after July 1, 2006, than the 6% rate will apply.
Purchases of goods
5. What happens if I purchase an item on or after July 1, 2006 and the supplier charged me GST at the rate of 7% instead of the 6% rate?
You may seek a refund of the overpaid tax directly from your supplier.
As an alternative, you may file for a rebate for the tax paid in error with the CRA, using form GST
Services and intangibles
6. If I receive my electricity bill in a month that includes the day the proposed GST rate changes, what rate of tax will apply?
If the date of the invoice is on or after July 1, 2006, GST at the rate of 6% will be charged on that invoice.
7. If I have an equal billing plan set up for a utility service which covers a period beginning before July 1, 2006, how will the supplier determine which of the payments made in 2006 should be subject to GST at the reduced rates?
The supplier will collect GST at 7% on payments made or becoming due before July 1, 2006, and GST at the reduced rate of 6% on payments made without becoming due on or after July 1, 2006, or as they become due on or after that date.
8. I have an equal billing plan set up for a utility service that covers a period beginning before July 1, 2006. The supplier reconciles my actual consumption of the utility service and the amount that would have been payable on that consumption against the amount I actually paid throughout the period. As a result of the reconciliation, the supplier issues an invoice on or after July 1, 2006 for the remaining amount due on the utility services that I had consumed during the period. What rate of tax applies on the amount of consideration charged on this invoice?
If, as a result of the reconciliation of the account, the supplier issues an invoice after July 1, 2006, for the remaining amount payable on the utility service, the supplier will charge GST at the reduced rate of 6% on the amount owing.
9. I have an equal billing plan set up for a utility service that covers a period beginning before July 1, 2006. The supplier reconciles my actual consumption of the utility service and the amount that would have been payable on that consumption against the amount I paid throughout the period. As a result of this reconciliation, the supplier issues me a credit note on or after July 1, 2006 for the overpayment that I made. What rate of tax applies to the credit amount given to me?
If, as a result of the reconciliation of the account, the supplier issues a credit note on or after July 1, 2006, for the amount that you overpaid the supplier, the supplier may generally credit you, using the rate of GST to which the original supply to which the price adjustment relates was subject. For example, a price adjustment in relation to a supply that was originally subject to GST at the rate of 7% will be subject to GST at that same rate.
For a complete list of questions and answers and more information on the new GST rate, please see the following website:
http://www.cra-arc.gc.ca/agency/budget/2006/gstrateqa-e.html
Waterloo North Hydro Inc.
300 Northfield Drive East
PO Box 640
Waterloo, Ontario, N2J 4A3
Phone: 519-886-5090
Employment Opportunities
Phone: 519-888-5543
General Inquires:
Customersupport@wnhydro.com
Phone: 519-885-6840
Fax: 519-746-0133
Engineering Inquiries:
eclerk@wnhydro.com
Phone: 519-888-5552
ECRA/ESA LICENCE 7004206
Standard Business Hours:
8:30am - 4:30pm (Monday - Friday)
Emergency Hours:
24 hours a day, seven days a week
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