"Example 1: In May 2010, a person enters into an agreement to purchase furniture. Under the agreement, the person takes delivery of the furniture in July 2010, makes 12 monthly payments between July 2010 and June 2011, and receives ownership of the furniture when all the payments have been made. The HST would apply to the sale of the furniture."
That's a pre-HST purchase where you don't pay in advance. But what about if you pay the full price in advance of July 1 but don't actually take possession until after July 1? Surely that can't be subject to the HST?
Oh yes it is!
Here's another BC government example:
"Example 2: In June 2010, a person pays for a sailboat, but the sailboat will not be delivered, and ownership will not be transferred, to the person until August 2010. The HST would apply to the sale and the supplier would account for the B.C. component of the HST in the GST/HST reporting period of the supplier that includes July 1, 2010."
How about your gym membership? If you pre-pay before July 1 what happens?
Oh yeah, feel that burn - you pay the HST.
"Example 14: In June 2010, a person purchases a four-month membership in a fitness club for the months of June through September 2010. The HST would be payable in respect of three of the four months of the membership (i.e., on 75 per cent of the total consideration)."
Canucks fans can also start putting aside extra money for tickets to games after July 1, 2010 no matter when they buy them, says the BC government:
"Example 16: In May 2010, a vendor sells tickets to a professional hockey game that will take place in October 2010. The HST would apply to the sale."
Perhaps most frightening for those contemplating buying a new house or apartment, the government says it hasn't quite figured the rules out:
"Information about the transitional rules for new residential housing in B.C. will be provided in the coming months."
As I wrote in my column in 24 hours and The Tyee this week, the high cost of the HST keep mounting as we learn more about what will be taxed an extra 7%.
Be afraid, be very afraid! And don't believe the hype about the HST benefitting the economy - this will be an expensive disaster for consumers as $1.9 billion in costs is transferred to them from big business - the only ones who will profit from this mess!
If you don't like what you're reading here about how the HST will affect you and your family - do something about it!
Join Fight HST - the grassroots group started by former Premier Bill Vander Zalm that I am supporting, along with people from every political persuasion or none at all.
And join my Facebook protest group - NO BC HST - which has over 127,000 members - that's more than the Vancouver Canucks Facebook page!