Although Ontario officially harmonized the provincial sales tax with the federal GST on July 1st to create a new 13% HST on most taxable goods and services, the Retail Sales Tax was not eliminated in all areas:
Insurance premiums are still subject to 8% retail sales tax. A purchase exemption certificate may be available in certain circumstances.
Private sales of vehicles is subject to provincial RST at an enhanced rate of 13%. This is not to be confused with HST as a GST/HST registered purchaser of a vehicle in a private sale is not eligible to claim this amount as an input tax credit. This tax is typically charged at a Service Ontario Centre or Driver and Vehicle License Office when transferring ownership and registering a vehicle.
