Does HST Affect Your Wedding?

Effective July 1, 2010, BC government will start levying HST, a single 12% tax, instead of GST and PST that currently charging on your goods and services. Currently goods are charged with GST and PST totalling 12%, but services are only charged with a 5% GST. HST does not affect merchandises that much as 12% taxes are applied on each item anyway. However, you will see a big difference (7%) for services as a big leap in tax payments will result when HST is effective.

What does it mean for weddings? A wedding maybe the most costly single-day event in a person's life. The 7% makes a big difference!! The big ticket items for weddings include wedding bands, wedding gowns, ceremony and reception venues, photography and videography services, and etc. Wedding bands and wedding gowns are merchandises so they will not be affected. However, for wedding venues, and photography and videography services, an additional 7% tax will apply. If you spend $20,000 for wedding venues and $8,000 for photography and videography services, you will have to pay additional $2,000 in tax.

For couples getting married this year, try to book and negotiate with your wedding suppliers before July 1 and maybe you can get your additional 7% tax waived.