The provincial government has created an action plan to reinstate the old tax system of 7% PST and 5% GST. The plan intends to make the change back a smooth and effective process for everyone. It’s expected to take at least 18 months to switch back, with progress updates provided quarterly by the Province.

Those who are eligible for the BC HST credit will continue to receive it until the provincial governments action plan has been completed. If you operate in the film industry, unfortunately the savings brought by HST are now gone.

Businesses will be required to assess, collect, report and remit PST and other related taxes to the provincial government. They are also responsible for changing over their electronic and manual systems and processes. In order to help smoothen the change, the provincial government will be providing information and training on the tax application, collection, compliance and reporting rules related to the PST.

Many believe that it was not the HST itself that caused such an uproar, but the way it was introduced. So keep a close eye on this issue; it’s possible that a new hybrid version of the HST will be developed to provide the best sales tax solution for BC.

To find out more about how this change will affect you and your business, contact our team at Acton Accounting & Bookkeeping

On the other side, a report in The Vancouver Sun has illustrated that “Recession is now history in BC” according to an increase of good business news.  KPMG announced that “the host of the 2010 Winter games now offers the best business tax climate of 41 countries measured around the world.”

According to various surveys and reports there is evidence of an increase in business and a slight improvement in the economy however, this is insignificant news to the majority of households across BC who are finding it difficult to make ends meet.