The newly implemented harmonized sales tax will increase the amount of tax charged to the British Columbian consumers for a variety of services. Mobile phone services and long distance services are already charged a 5% GST and a 7% PST, meaning the new 12% HST that is now charged doesn’t change the overall cost. However, local phone services and basic cable television will now have the additional HST applied, effectively increasing the amount of tax paid on these items from 5% to 12%.

Maintenance services home-owners often take advantage of, such as lawn care, house cleaning, renovations services and major appliance repair (fridges, stoves, etc) will now be subject to 12% HST instead of the 5% GST. Repair of electronic items such as stereo equipment or computers was always subject to 5% GST and 7% PST, so the new 12% HST doesn’t change the amount of tax due.

Home insurance remains exempt from HST. Residential heat and electricity services is subject to the 12% HST, but a 7% Residential Energy Rebate applies to the PST portion of the tax, which reduces the total tax paid to 5%.Before HST came into play there was a small Innovative Clean Energy levy added to electricity bills which has now been eliminated.

Other Resources:

Ontario HST on Home Services