Most small businesses will incur some costs in transitioning from RST to HST such as updating their point of sales machines and software. To support small businesses, Ontario will provide a one-time transition credit of up to $1,000 for businesses with less than $2 million in annual revenue.

The credit is calculated based on taxable sales in the first full quarter following June 30, 2010 as follows:

• Taxable revenue less than $15,000 receive $300 credit
• Taxable revenue between $15,000 and $50,000 received a credit of 2% revenue
• Taxable revenue between $50,000 and $500,000 receive $1,000

The credit will be claimed on the first HST filing following June 30th as an offset to net remittable tax.