RST Information Notice, January 2008
The Retail Sales Tax Act (Act) allows the minister to grant authorization to use tax-included pricing in certain cases as noted below. Vendors who choose to use tax-included pricing must post a sign in a clearly visible location stating that prices include the applicable 8 per cent RST, or they must state the amount of RST included in each price.
The following vendors may use tax-included pricing:
For more information, refer to RST Guide 208 – Tax-Included Pricing.
If a vendor's sign or price list states that 8 per cent RST is included but does not state the actual amount of RST included in the selling price of each item, the RST to be remitted will be calculated as follows:
If a vendor's sign or price list states that GST is included and RST is charged separately, the RST to be collected will be calculated as follows:
Where tax-included pricing is used for commercial parking, the 8 per cent RST to be remitted will be calculated as follows:
Where the price charged for prepared food includes both 8 per cent RST and GST, the RST to be remitted will be calculated as follows:
Where the price charged for prepared food includes GST and is over $4.20, but RST is charged separately, the RST to be collected will be calculated as follows:
For more information, refer to RST Guide 300 – Prepared Foods.
Where the price charged for alcoholic beverages includes both RST at either 10 or 12 per cent and GST, the RST to be remitted will be calculated as follows:
Where the price charged for alcoholic beverages includes GST and RST is charged separately, the RST to be collected will be calculated as follows:
For more information, refer to RST Guide 302 – Alcoholic Beverages.
Where the price charged for admissions to places of amusement is over $4.00 ($4.20 including GST), the 10 per cent RST to be collected will be calculated as follows:
Where both GST and RST are included, the RST to be remitted will be calculated as follows:
For more information, refer to RST Guide 303 – Admissions.
Rebates are available for religious, charitable or benevolent organizations undertaking capital investments, solar energy systems installed into residential premises, eligible electricity generating facilities, and deep lake-water cooling facilities.
The formula for these rebates is currently under review. Changes will be communicated at a later date. Where GST has been included in the contract price, vendors should continue to calculate the rebate by multiplying the payments made by 3 per cent.
For any sales made prior to July 1, 2006 where tax-included pricing is used, vendors should continue to use the calculations that are detailed in RST Guide 208 – Tax-Included Pricing.
For any sales made on or after July 1, 2006 and on or before December 31, 2007 where tax-included pricing is used, vendors should continue to use the calculations that are detailed in the July, 2006 Info Notice titled "How the GST Rate Reduction Affects Retail Sales Tax (RST)".
For more information, please contact the nearest Ontario Ministry of Revenue Tax Office listed under Taxes - Provincial (Retail) Sales Tax in the blue pages of your telephone directory, call the ministry at 1 866 ONT-TAXS (1 866 668-8297), or visit our website at ontario.ca/revenue.
© Queen's Printer for Ontario, 2008
ISBN 978-1-4249-4851-2