ON – Claiming an RST exemption on insurance products

Notwithstanding the introduction of the harmonized sales tax on July 1, 2010, retail sales tax (RST) will continue to apply to premiums paid under a contract of insurance or benefits plan after June 30, 2010. Some purchasers may be entitled to an exemption from RST, and in order to do so, a purchaser is required to provide the seller with a valid purchase exemption certificate (PEC). The Ontario government has issued a Tax Tip outlining how a PEC may be used to claim such an exemption and that Tip can be found on the Ontario Ministry of Revenue Web site at http://www.rev.gov.on.ca/en/taxtips/hst/19.html.

 

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