Are you wondering whether contractors charge HST on materials? It`s a common question that homeowners ask when they hire a contractor to do renovations or repairs to their homes. The answer is, it depends on the contractor and the type of work being done.
In Canada, the Harmonized Sales Tax (HST) is a tax collected by the federal and provincial governments on goods and services sold in the country. The tax rate varies depending on the province, but it is generally around 13%. Many contractors will add the HST to their invoices for the work they do, but the question is, do they charge HST on materials?
The short answer is yes, contractors typically do charge HST on materials. When a contractor purchases materials for a job, they often include the cost of those materials in their invoice to the homeowner. This means that the HST on the materials is also included in the invoice.
Contractors are required by law to charge HST on all taxable goods and services they provide, including materials. The only exception is if the homeowner provides the contractor with a valid HST exemption certificate.
It`s important to note, however, that some contractors may include the cost of materials in their overall project quote. In these cases, the HST on the materials is already factored into the total cost of the project. This means that the contractor may not itemize the materials and HST separately on their invoice.
When hiring a contractor, it`s always a good idea to ask for a detailed breakdown of the costs involved in the project. This can help you understand exactly what you`re paying for and whether HST is included. By understanding the costs upfront, you can avoid any surprises when it comes time to pay the bill.
In conclusion, contractors do charge HST on materials in most cases. This is because they are required to by law. However, the way the HST is included in the invoice may vary depending on the contractor and the project. If you have any questions about HST or the costs involved in your renovation or repair project, don`t hesitate to ask your contractor for more information.