BC Clothing HST and related services
The clothing industry doesn’t escape the Harmonized Sales Tax scheduled to come into effect on July 1st. Both GST and PST are already charged on most articles of clothing and accessories. Tax on adult clothing and shoes, watches, jewelery , handbags, backpacks, sunglasses and belts will all remain being taxed at 12%, but instead of 5% GST and 7% PST, it will now be a 12% HST. Used adult clothing escaped the provincial sales tax, but will be subject to 12% Harmonized Sales Tax after July 1st.
In British Columbia, clothing for children, including footwear, will be HST exempt; only 5% GST will be charged. The good news is disposable diapers, which are currently taxed at 12% with GST and PST will be HST exempt after July 1st. This means new parents will save 7% on their diaper purchases post-HST. One of the more notable changes in the area of clothing for children is all adult products will be subject to the 12% HST – this means parents can no longer claim an adult product is for a minor to save the 7% PST.
A number of clothing related services will have to endure a 7% tax increase with HST. Shoe repair, tailoring, dry cleaning and clothing rentals will all increase from 5% GST to 12% HST. Make sure you get all your dry cleaning done at the end of June!