GST rate cut

January 4, 2008

The rate of GST was reduced from 6% to 5% effective January 1, 2008.

Generally, the new 5% GST rate will apply to the supply of taxable goods, intangible property (such as rights), and services:

  • if GST becomes payable on or after January 1, 2008 without having been paid before that day; or
  • if GST is paid on or after January 1, 2008 without having become payable before that day.

If GST/HST becomes payable or is paid in 2007, the 6% GST rate will apply.

Regarding work in progress, this is from the Government of Canada's website:

"I am an accountant issuing an invoice after January 1, 2008 for services performed from September to December 2007. What rate of tax do I charge on these services?

Since the invoice was issued after January 1, 2008, you would charge the reduced 5% GST or 13% HST rate."

We see no reason why lawyers would be treated differently from accountants in a similar situation.

The full text of the Government's Notice may be found at:

If you require further clarification, contact Dave Bilinsky, Practice Management Advisor, at 604-605-5331 or