The rate of
Ontario sales tax is 8%. Sales tax at the rate of 5% is charged on accommodations not exceeding a period of one month. For entering places for amusement, the tax rate is 10%. Alcoholic beverages when sold through retail outlets are taxed at a rate of 12%. If the beverages are sold through licensed establishments, the tax rate becomes 10%. Wine and beer that are made in a brew-your-own store are charged at a flat rate of 13%.
Retail sales tax of Ontario is a type of consumption tax. This tax is imposed on consumers of taxable goods and services, insurance premiums and admission prices. In order to charge and garner such taxes, a vendor permit is required. This permit is a must for regular sellers of taxable goods and services, insurance. Importers of taxable goods and services, manufacturing contractors with business amounts in excess of $50,000, non-resident contractors carrying out business in Ontario all need a vendor's permit. A vendor permit of Ontario can be acquired by registering over telephone or by mail or fax from an Ontario Ministry of Revenue Tax Office or from Ontario Business Connects workstation. Online facilities are also available from the official website of the Revenue Department of Ontario.
Sales tax in Ontario is charged on all tangible personal property. The non-taxable goods of Ontario include the following:
- Medicines sold under a prescription of a doctor
- Food products excluding soft drinks, snacks, candies, confections
- Prepared foods costing below $4
- Footwear costing below $30
- Clothing of children
- Hygiene products for women
- Newspapers and books
- Goods for physically disabled people
The taxable services in Ontario include the following:
- Accommodations of a time span of less than a month
- Telecom services
- Commercial services
- Contractual services
- Installation, repairing, assembling and dismantling services for tangible property
The non- taxable services of Ontario include the following:
- Cleaning of upholstery and carpets
- Dry cleaning
- Health and medical services
- Personal hair styling and beauty treatments
- Veterinary services
- Car washing services
Sales tax is not imposed on real property like buildings, roads, fences, and driveways. Those fixtures that are installed by sellers are also exempt from sales tax. Sales tax returns of Ontario can be filed in the following ways:
- At any Ontario financial institution
- Mailing to any Ontario Ministry of Revenue Tax Office
- Online at the above mentioned website
- Paid by check or money order to the Ministry of Finance