The Continuing Legal Education Society of BC recently released HST Law Practice FAQ, publication it prepared to clarify the rules applicable to PST and HST on legal fees.
The Law Society summarizes the interaction among the GST, HST, and PST in the following news release about CLEBC’s Practice FAQ:
Effective July 1, 2010, PST is eliminated and lawyers are instead required to collect HST. However, collection of PST continues under rules established for transition to HST. When billing for legal services provided before and after July 1, lawyers must charge PST and GST (but not HST) if 90% or more of the services are performed before July 1. If less than 90% of the legal services are performed before July 1, lawyers must charge PST, GST and HST based on the proportion of services performed before and after July 1. PST collection requirements continue under the transition rules until December 31, 2010.