How to Save with the HST
The HST is coming. The new harmonized sales tax is in full effect on July 1st, 2010. Clients are asking how this affects their payments for sessions. Renew by the end of day on April 30th to save 7%.
In an effort to curb pre-payments, the government instituted a new rule that Lifemoves just found out about. The only way to save with the HST is to renew in the next two days.
Here is how the HST affects payments for sessions with Lifemoves’ Kinesiologists:
- All sessions purchased by midnight on April 30th will only have 5% GST applied to them.
- Any packages purchased between May 1st to June 3oth, 2010, will have 5% GST applied to the initial payments. Then clients with any remaining sessions from packages purchased during this period will be invoiced for 7% on the remaining sessions.
Example:
Client A buys 12 sessions at $80 per for a total of $960 on May 2nd. Client A pays $48 in GST on $960. Client A uses 6 sessions by June 30th. Therefore Client A has 6 sessions remaining on July 1st. Client A will pay an additional 7% on $480 (6 sessions at $80) which equals $33.60.
- All sessions purchased after July 1st, 2010 will have the HST (12% applied to them).
