The move to HST means you will now only deal with one set of formsone payment and one point of contact for audits, appeals and taxpayer services. The following is a checklist of general considerations as the implementation date approaches:

• The HST is basically the GST, with a provincial component added, to arrive at a 13% rate. In most cases, if no GST applies now, no HST will apply after July 1, 2010.

• If you are already registered for GST, no further registration is required. If you are not required to register for GST, you do not need to register for HST. The same small supplier thresholds continues to apply.

• Your HST reporting period will be the same as your GST reporting period requirement. You will report both GST and HST charged and collected (Line 105 of your return), and claim input tax credits ("ITCs") for HST paid on business purchases (Line 106 of your return) in much the same way you have been for GST.

• All HST paid will be recoverable as ITCs for taxable businesses, with only some restrictions for large businesses. If your ITCs are calculated using formulas, modifications to the formulas will be needed for recovery of the HST (13%) versus the GST (5%).

• Your final RST return is due on or before July 23, 2010.

• You should modify accounting, billing and invoicing systems, cash register and point of sale systems, including web interfaces and automatic payments, to switch to HST and remove RST. You should also ensure budgets remove the 8% RST cost from purchases after July 1, 2010 in accordance with the transitional rules. You should also update taxable benefit calculations.

• Review the transitional rules for transactions straddling the July 1, 2010 implementation date. Ensure you charge HST, as appropriate, on any billings on or after May 1, 2010 for taxable goods, services or intangible property to be supplied after June 30, 2010. More details will follow in subsequent newsletters.

• Familiarize yourself with the place of supply rules and the temporary restrictions on input tax credits. More details will follow in subsequent newsletters.

• Consider making business purchases currently subject to RST after July 1, 2010 when all HST (13%) will be fully recoverable as ITCs for taxable businesses (i.e., computers and other equipment, office supplies, etc.).