How does HST apply? HST Exemptions?

SOURCE:
HST Inquiries
British Columbia Ministry of Finance
JOBS AND THE ECONOMY: FACTS ABOUT THE HST

The HST will generally apply in the same way as the GST currently applies. For information on which goods are taxable, exempt, and zero-rated under the GST/HST, please see Canada Revenue Agency webpage Taxable or exempt?

For information on how the HST applies to sales to diplomats, governments, and Status Indian / Indian Bands, please see Canada Revenue Agency webpage on Sales of goods and services to specified persons

Effective July 1, 2010, all B.C. government entities – ministries, agencies, boards, commissions, and Crown corporations – will pay GST/HST on their purchases of taxable property and services. Rather than claiming an exemption from GST/HST as they do currently, eligible entities (i.e., Ministries and other entities on Schedule A of the Reciprocal Taxation Agreement) will pay GST/HST and claim a 100 per cent rebate.

This simplifies administration for suppliers because they are no longer required to have different rules or administer a special exemption system for government as they did under the GST.

The following link is to an HST information notice for suppliers. It contains information about supplies of taxable property and services to B.C. government entities and the application of the general transitional rules to B.C. government entities.
HST Notice for Suppliers of Taxable Property and Services to the BC Government

This correspondence describes the proposed HST and is for information purposes only. In the event of a conflict between this correspondence and any legislation enacted to implement the HST, the legislation will govern. The Ministry is not responsible for updating this response if there are any subsequent changes to the proposed HST.

The HST is imposed under federal legislation, the Excise Tax Act (Canada) and will be administered by the Canada Revenue Agency. For information related to the transition to HST, please visit Canada Revenue Agency webpage Harmonized Sales Tax (HST) for Ontario and British Columbia or call 1 800 959 5525.