GST Reduction for 2008 in Canada.

The GST rate will be reduced by one percentage point from 6% to 5%, effective January 1, 2008. To facilitate the transition to the lower rate, transitional rules for determining the GST rates applicable to transactions that straddle the January 1, 2008 implementation date have been enacted.

This notice provides a detailed set of questions and answers that reflect the legislative amendments to the Excise Tax Ac to implement this rate reduction. These amendments are now law and are included in Bill C-28, which received Royal Assent on December 14, 2007.

For purposes of simplicity and consistency, the CRA is following the same approach used in implementing the previous rate reduction.

Hope this info helps, will effect us quite a bit i think,

Adam Affleck

Charlottetown Remax Realty