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Home > Information Center > All news > 2006 > 2006-07-01 Effective today, July 1, the GST rate is reduced to 6%
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Summary

Effective today, July 1, the GST rate is reduced to 6%

For the occasion, we have updated the relevant information on our Web site. You will find revised versions of existing GST forms as well as a new form, GST-QST Adjustment Application for Residential Complexes (FP-2192-V).

A questions and answers section is provided to help consumers and businesses better understand the fiscal consequences of this tax reduction.

As a consumer, you will find out

  • what to do if you are charged GST at the rate of 7% after June 30, 2006
  • what rules apply to items purchased on layaway or equal billing plans
  • what exceptions exist for new housing

Businesses will find out how the new rate affects

  • sales of property
  • services and intangible property
  • rentals
  • leases
  • imports
  • coupons, price adjustments and returned goods
  • tax accounting and invoicing
  • rebates
  • real property

The federal goverment has put online a new Web site relating to the GST. You may consult the site at www.tps.gc.ca.

Note that further to the reduction in the GST rate, certain changes will be made to the Québec sales tax system. For more information, consult Information Bulletin 2006-02 from the Ministère des finances du Québec.

If you wish to contact Revenu Québec, click on To reach us.

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