HST and Your TELUS Bill
Several provincial governments have implemented changes to the sales taxes charged on products and services sold in their regions effective July 1, 2010.
- British Columbia is replacing GST and PST with a
12 per cent harmonized sales tax (HST) - Ontario is replacing GST and PST with a 13 per cent HST
- Nova Scotia is increasing its existing HST from 13 per cent to 15 per cent
Note: All information provided by TELUS regarding the HST is subject to change and is not intended to be a substitute for professional advice. Professional advisors should be consulted with questions you have about the Harmonized Sales Tax and how it affects you.
Residential customers
Residential customers in Ontario and B.C. will see changes on their TELUS bills as a result of the new HST regime. Some previously PST exempt services may now be subject to HST. For example, customers who subscribe to Internet access in Ontario will see 13 per cent HST being applied on their bills, up from five per cent prior to July 1.
In B.C., consumer landline service and basic TELUS TV will be affected. Customers will see the tax increase from five per cent to 12 per cent for these services.
Generally speaking, the implementation of HST will not result in a change to the amount of tax paid on mobility telecom services or wireless handsets, because the combined rates will remain the same in British Columbia and Ontario, however, for services delivered starting July 1, HST will be applied rather than GST and PST.
Q. Why does my June bill have HST charges?
A. Some TELUS monthly services are charged one month in advance. Your June bill may straddle the July 1 HST implementation date and, if so, will contain charges for services provided in both June and July. These charges will be pro-rated and GST and PST will apply to the portion of the charges for June, and HST will apply to the portion of the charges for July
Q. Why does my July bill have GST and/or PST as well as HST?
A. Per government legislation, HST is charged for products and services delivered on or after July 1. GST and/or PST is charged for products and services delivered before July 1.
Q. Why does my July bill have a GST/PST/HST adjustment?
A. Some TELUS products and services are billed in advance. If GST/PST was applied for July charges on your June bill, you will see an adjustment on your July bill. The adjustment will (a) reverse the GST/PST for the July charges that appeared on your June bill, and (b) apply HST on the July charges that appeared on your June bill.
Q. My June bill does not show HST being applied for Internet services delivered in B.C. and/or Ontario starting July 1. Why not?
A. Most TELUS bills that straddle the July 1 HST implementation date included:
- PST and GST for services delivered in Ontario and British Columbia before July 1; and
- HST for services delivered in these provinces starting July 1.
The system that generates our Internet services billing data could not accommodate the straddling of taxes on your June bill. As a result, TELUS will make adjustments on a future bill.
Q. My most recent bill shows a tax adjustment for Internet services. Why is this adjustment being made?
A. The adjustments were made for the reasons described in the answer to the previous question. If you live in British Columbia, you will see a credit for the GST and PST you paid for Internet services delivered starting July 1 and a debit for HST on those services.
Internet services were not subject to PST in Ontario. As a result, if you live in Ontario, you will see a credit for the GST you paid for Internet services delivered starting July 1 and a debit for HST on those services. The amount of the credit and debit will depend on your billing date.
The adjustments will most likely appear on your August bill but, depending on when in the month your bill is produced, could appear on your July or September bills.
Business customers
Your business will need to be aware of the compliance requirements related to the implementation of HST. If you have not already done so, we recommend that you consult with your tax advisors.
Q. Can my business claim HST input tax credits for TELUS products and services?
A. According to the latest government information, some businesses are eligible to claim full input tax credits from Canada Revenue Agency for the federal and provincial components of HST charged on certain telecommunications products and services in British Columbia and Ontario. These products and services include Internet access, web hosting, and toll-free services, as well as separately invoiced rentals of telecommunication equipment. However, certain large business are restricted from claiming the provincial portion of the HST on purchases of telecommunication services, such as local and long-distance telephone services. For information about your business’s eligibility for claiming input tax credits, please consult with your tax consultant or visit the federal HST website.
Q. Will TELUS provide information that will help me identify which services are categorized as telecom and the provincial portion of the HST charged on these telecom services?
A. Yes. TELUS has reviewed all of its products and services in preparation for the new HST legislation and will provide additional information to assist customers in identifying which services are categorized as telecom and which are not. :
For wireline services in B.C. and Ontario
- Products and services categorized as Telecom will be identified on bills with an asterisk ‘*’ either before or after the product description.
- Products and services categorized as Non-Telecom will not have any special indicators beside the product description.
- TELUS will identify the provincial portion of the HST charged on telecom services in B.C. and Ontario on business customers’ monthly bills.
For wireless services in B.C. and Ontario
- TELUS will be providing wireless business and corporate customers access to an on-line tool that calculates the provincial portion of the HST charged on wireless telecom services purchased in B.C. and Ontario.
- Visit www.telusmobility.com/youraccount and register your account. To access this report, go to e.bill and select the “Report” tab.
In Quebec:
- Products and services categorized as Telecom will be identified on your bill denoted with"OT/CT" after the product description.
- Products and services categorized as Non-Telecom will be denoted with "OC/CC" after the product description.
Q. My business’s June bill does not show HST being applied for Internet services delivered in B.C. and/or Ontario starting July 1. Why not?
A. Most TELUS bills that straddle the July 1 HST implementation date included:
- PST and GST for services delivered in Ontario and British Columbia before July 1; and
- HST for services delivered in these provinces starting July 1.
The system that generates our Internet services billing data could not accommodate the straddling of taxes on your June bill. As a result, TELUS will make adjustments on a future bill.
Please note that TELUS is providing this assistance for information purposes only, as customers will be responsible for determining and claiming any eligible input tax credits. If you have not already done so, we recommend that you consult with your tax advisors.
Q. My business’s most recent bill shows a tax adjustment for Internet services. Why is this adjustment being made?
A. The adjustments were made for the reasons described in the answer to the previous question. For services delivered in British Columbia, you will see a credit for the GST and PST you paid for Internet services delivered starting July 1 and a debit for HST on those services.
Internet services were not subject to PST in Ontario. As a result, for services delivered in Ontario, you will see a credit for the GST you paid for Internet services delivered starting July 1 and a debit for HST on those services. The amount of the credit and debit will depend on your billing date.
The adjustments will most likely appear on your August bill but, depending on when in the month your bill is produced, could appear on your July or September bills.
Q. Where can I get more information about HST and how it affects my business?
A. We recommend that you visit the following websites for additional information.
Government of British Columbia
Government of Ontario
Federal government
Updates will be posted as they become available.