Ontario Electronic Stewardship Fees

Information Notice
Published: May 2009
Content last reviewed: August 2010
ISBN: 978-1-4249-9939-2 (Print), 978-1-4249-9941-5 (PDF), 978-1-4249-4850-5 (HTML)

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.

This notice explains how Retail Sales Tax (RST) applies to environment fees passed on to consumers under the Waste Electrical and Electronic Equipment (WEEE) Program Plan.

Background

On April 1, 2009, Phase 1 of the WEEE program commenced under the direction of Ontario Electronic Stewardship (OES). This Ontario waste diversion initiative led by the Ministry of the Environment, ensures the effective and environmentally sound management of electrical and electronic equipment (EEE) such as computers, monitors, fax machines and televisions.

Fees Payable under the WEEE Program

To cover the cost of the program, an environmental fee is imposed by OES on industry stewards (manufacturers, first importers or franchisors) that distribute or sell such EEE products. RST does not apply to the fee payable to OES as the charge by the organization is not in respect of taxable goods or taxable services.

Fees Passed on to Retailers

If industry stewards choose to recover this cost by passing it on to retailers who purchase these products, it forms part of the fair value of the products sold. Retailers purchasing products for resale may purchase them exempt from RST by providing their suppliers with a Purchase Exemption Certificate.

Fees Charged by Retailers

If retailers choose to recover this cost by passing it on to their customers in the form of higher prices or as a separate charge on the customer's invoice, it forms part of the fair value of the taxable product and/or service provided and is subject to RST at a rate of 8 per cent. Retailers are required to charge, collect and remit RST on the total selling price of any taxable goods and/or services sold.