Notice to the reader: For Retail Sales Tax (RST) – On July 1, 2010 the 13 per cent Harmonized Sales Tax (HST) took effect in Ontario replacing the existing provincial Retail Sales Tax (RST) and combining it with the federal Goods and Services Tax (GST). As a result, RST provisions described on this page and in other publications ended on June 30, 2010.
Effective July 1, 2010 this publication was archived for RST purposes only. Use caution when you refer to it, since it reflects the law in force for RST at the time it was released and may no longer apply.
On September 5, 2007, Ontario Regulation 530/07 was filed that amended subsection 1(1) of Regulation
1012 to the Retail Sales Tax Act (Act). The amendment defines a qualifying non-profit organization for the
purposes of the exemption provided under paragraph 7(1)(67) of the Act for admissions to a place of
amusement that are donated by the owner or operator of the place of amusement. This exemption is
effective for tickets donated after March 23, 2006.
- On March 23, 2006, a number of measures relating to the Retail Sales Tax (RST) Act and its regulations were announced in the 2006 Ontario Budget. The proposed amendments must be passed by the Legislature and receive Royal Assent to become law.
Destination Marketing Fees
The Ontario government proposes that the current RST exemption available for Destination Marketing Fees (DMF) charged on transient accommodation be extended for a further year, until June 30, 2007. This measure continues the current temporary exemption.
DMFs billed on or before June 30, 2007 would be exempt from the 5 per cent RST charged on transient accommodation, provided all of the following conditions are met:
- the fee is forwarded by the vendor to a non-profit agency to be used for the exclusive purpose of promoting tourism in Ontario or the municipality in which the accommodation is located
- the fee is shown as a separate item on the purchaser's invoice or receipt
- the fee does not exceed three per cent of the fair value of the accommodation, and
- the fee must be labelled on the purchaser's invoice or receipt as 'Destination Marketing Fee'.
Complimentary Admission Tickets
Admissions to a place of amusement that are donated to a registered charity, as defined in the Income Tax Act (Canada), by the owner or operator of a place of amusement are currently exempt from RST. This exemption is proposed to be expanded to include complimentary tickets donated to community colleges, schools, universities and qualifying non-profit organizations, as defined by the Minister. This measure would be effective for tickets donated after March 23, 2006.
Rebate for Hybrid Electric Vehicles
The rebate of 8 per cent RST paid on eligible hybrid electric vehicles (HEVs) is currently limited to a maximum of $1,000. The Ontario government proposes to double the maximum RST rebate for qualifying HEVs from $1,000 to $2,000 for vehicles delivered to purchasers after March 23, 2006. The rebate of RST on eligible HEVs would be available for vehicles purchased before April 1, 2012. The maximum rebate, and other qualifying criteria, for alternative fuel vehicles other than HEVs will remain unchanged.
Clearance Certificates
Persons who sell their business or business assets through a sale in bulk are required to obtain a clearance certificate from the Ministry of Finance. It is proposed that clearance certificates issued under the RST Act be amended to ensure that any outstanding taxes may be collected from vendors after the certificate has been issued. The proposed measure would not affect the purchaser's protection associated with a clearance certificate.
For More Information
For more information, please contact the nearest Ontario Ministry of Finance Tax Office listed under Taxes - Provincial (Retail) Sales Tax in the blue pages of your telephone directory, or visit our website at ontario.ca/finance.
