Paying Pst In Ontario On A Hot Tub.

[Tundra]

Recently I read the following post regarding PST exemption on new hot tubs in the province of Ontario.

Can anyone confirm this applies to delivery only? Reading the document on the Ontario Government website ( http://www.rev.gov.on.ca/en/notices/rst/43.html ) it sounds to me more like you need the retailer to also do the electrical work, not just drop off and hook-up to existing electrical. But then again it also sounds like if the retailer places the tub in the "permanent" location then then you are exempt from PST.

If they delivered your tub then there is no way they should be charging PST. In Ontario 2006 legislation came in that made Hot tubs "Real Property" which makes it exempt from a dealer charging PST. The dealer has to pay the PST for the tub on the dealer landed cost. Nowhere on your sales contract or invoices is that 8% or combined 13% to be shown. On what you described you purchased 13% can only be charged on your chems & step. The breaker becomes part of the tub and so does the lifter when attached during the installation. So my advice is to look closely at your bill.

[Grayce]

I had read on a forum that you did not have to pay PST but I had several quotes that showed PST. I called around to several dealers and asked regarding this. I was told that PST had to be paid whether the dealer incorporated it into the cost of the tub or they added it at the end.

[Tundra]

Well I called the Ministry of Revenue and they confirmed this. In Ontario, if the dealer is delivering and installing the tub (hooking up new or to existing electrical) then the customer should NOT pay PST.

Having said that, we can only assume dealers have factored the RST into the price of the tub already. Though I've encountered one dealer that "played dumb" to the RST and was obviously going to charge for it (and has done to to other customers), on top of the mark-up. Also, another form of abuse would be the dealer saying they're going to take off $1000 due to sale. But really, they're just deducting the PST you should have had to pay to begin with. Either way, the customer is most likely paying for it.

For those of you that see PST on your invoice, certainly question it.

[Pathfinder]

Dealer has to pay and remit PST on the landed cost of the Hot Tub not retail cost. The cost is then factored into the retail price of the tub. In no circumstances is PST to be shown on the sales invoice. With that being said the government has left it where the dealer can charge you PST and then you the customer have to claim the deduction on your income tax forms. Once the tub is delivered to the home by dealer or sub it becomes real property no matter if they do the wiring or your guy does the wiring. So PST should not be charged.

[ArthurRepairman]

Recently I read the following post regarding PST exemption on new hot tubs in the province of Ontario.

Can anyone confirm this applies to delivery only? Reading the document on the Ontario Government website ( http://www.rev.gov.on.ca/en/notices/rst/43.html ) it sounds to me more like you need the retailer to also do the electrical work, not just drop off and hook-up to existing electrical. But then again it also sounds like if the retailer places the tub in the "permanent" location then then you are exempt from PST.

If they delivered your tub then there is no way they should be charging PST. In Ontario 2006 legislation came in that made Hot tubs "Real Property" which makes it exempt from a dealer charging PST. The dealer has to pay the PST for the tub on the dealer landed cost. Nowhere on your sales contract or invoices is that 8% or combined 13% to be shown. On what you described you purchased 13% can only be charged on your chems & step. The breaker becomes part of the tub and so does the lifter when attached during the installation. So my advice is to look closely at your bill.

[ArthurRepairman]

Recently I read the following post regarding PST exemption on new hot tubs in the province of Ontario.

Can anyone confirm this applies to delivery only? Reading the document on the Ontario Government website ( http://www.rev.gov.on.ca/en/notices/rst/43.html ) it sounds to me more like you need the retailer to also do the electrical work, not just drop off and hook-up to existing electrical. But then again it also sounds like if the retailer places the tub in the "permanent" location then then you are exempt from PST.

If they delivered your tub then there is no way they should be charging PST. In Ontario 2006 legislation came in that made Hot tubs "Real Property" which makes it exempt from a dealer charging PST. The dealer has to pay the PST for the tub on the dealer landed cost. Nowhere on your sales contract or invoices is that 8% or combined 13% to be shown. On what you described you purchased 13% can only be charged on your chems & step. The breaker becomes part of the tub and so does the lifter when attached during the installation. So my advice is to look closely at your bill.

All this stuff is essentially true, if they deiver then pst is not to charged on the retail selling price! However there are some smart vendors out there. When they negotiate the deal on a piece of scratch paper, they treat the entire process like a regular sale adding gst and Pst. Then when they create the bill of sale there is no reference to the pst whatsoever. Hence there is nohing to fall back on . The bill of sale might say all taxes included but won't specify a pst component. My interpretatioin is that the PST is paid on the vendors cost by the vendor if the tub is delivered and becomes a chatel

One might sugget that if the sale is done as I have iindicated above that the vendor could be pocketing the (selling price - vendor price) X PST

Other vendors will tell you right up front that there is no pst and will charge you none

HOpe this helps! Took me for a loop when I bought my tub!!!!!!!!!!!