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EAC membership and the HST

Dear member,

The Province of Ontario has agreed to implement the harmonized sales tax (HST), which will replace the existing provincial sales tax and federal goods and services tax in Ontario beginning July 1, 2010. The Canada Revenue Agency will administer the combined tax. Legislation to enact the HST has been passed into law by the Governments of Canada and Ontario.

How does the new HST affect EAC?

Because the national office is based in Ontario, EAC must charge 13% HST on services that are delivered by the national association, regardless which province you reside in. These national services include—but are not limited to—membership in the association, Online Directory of Editors (ODE) profiles, and @editors.ca and @reviseurs.ca email addresses.

When will HST be in effect?

EAC is required to charge the full 13% HST on all national services as of July 1, 2010.

However, because membership is a service delivered over a 12-month period, according to the Canada Revenue Agency, EAC must begin charging prorated HST on memberships as of May 1, 2010.

May 1, 2010 – May 31, 2010*

Service Taxes levied
New membership or renewal 11.67% (GST + prorated HST)
ODE profile 5% (GST)
@editors.ca/@reviseurs.ca email address 5% (GST)

 June 1, 2010 – June 30, 2010*

Service Taxes levied
New membership or renewal 12.34% (GST + prorated HST)
ODE profile 5% (GST)
@editors.ca/@reviseurs.ca email address 5% (GST)

July 1, 2010 onwards*

Service Taxes levied
New membership or renewal** 13% (HST)
ODE profile 13% (HST)
@editors.ca/@reviseurs.ca email address 13% (HST)

*If you pay for your EAC services by mail, please ensure ample time for delivery. The tax we are required to collect is determined by the dated postmark on your payment. For example, if your payment has a June postmark, we must collect 12.34% tax.

**As passed by a vote of the membership at the 2009 AGM, on July 1, 2010, the membership fee will increase to $250 plus HST for voting and qualifying members and $125 plus HST for student and emeritus members.

For more information about HST, visit the Canada Revenue Agency online at www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html.

Carolyn L Burke
Executive Director, Editors' Association of Canada

This broadcast was produced on behalf of the national executive council by the national office.