Need a tax-time break? Here's a list of Top-10 Craziest Sales Tax Laws, prepared by Ernst & Young's commodity tax group.
In Ontario, the rental of a boat is taxable. If the boat is rented with an operator, it is not taxable. If it's rented with a guide, it is taxable. If the boat is rented with a guide who is also the operator, it is not taxable.
In Ontario, a vehicle emissions test is not taxable if the vehicle passes the test. If, however, the vehicle fails the test and repairs are made to bring it in line with the appropriate emissions standards, the emission test is taxable.
While GST legislation zero-rates (taxes at 0%) many goods and services, "ice lollies" are specifically excluded.
GST applies to a flight to Saint Pierre and Miquelon or Alaska, but not a flight to Hawaii.
GST applies to juice drinks with less than 25% juice. If the drink has more than 25% juice, GST applies only if the drink is less than 600 mL.
GST on deli-counter items depends on whether they are sold hot or cold. If they are served cold to be reheated by the customer, they are zero-rated. If they are sold warm, GST must be collected on their sale.
Railway men's watches continue to be exempt from the federal excise tax on watches.
You do not pay Ontario retail sales tax on a cup of coffee from a coffee shop. If you buy a pop at the café it is taxable; but, if you buy a sandwich with a pop and it costs less than $4, it's not taxable.
GST applies to snack items such as muffins or doughnuts, but not if you purchase a half-dozen or more at a time.
Boxes of breakfast cereal that contain a premium or bonus item are not subject to Ontario retail sales tax, provided the item is not liquor, wine or beer.