The following policies apply to the Harmonized Sales Tax (HST):

  1. Pooling of revenue

» The HST does not apply to the licensee’s share of the revenue split (45 per cent).

» The HST is payable on the bingo hall’s share (commonly referred to as “hall rent”) as defined in 6.8 of the Financial Management and Administration of Pooling Bingo Halls Terms and Conditions.

See also sample calculation on the following page.

  1. Bingo Hall — other revenue

» Bingo halls must collect HST on any taxable goods and service but can claim an input tax credit on any HST paid in providing those goods and/or services.

  1. Wagering

» HST is not collected from patrons purchasing paper or break open tickets.

  1. Prize payouts

» Payment of prizes is exempt from HST.

  1. Marketing fund

» HST is not payable as funds accumulate in the marketing fund. However, payments out of the fund (i.e., to suppliers) will be subject to HST unless otherwise specifically exempt from HST

  1. Reporting

» For all lottery events, the HST paid by the licensee for applicable services and supplies must be reported on the Bingo Hall Charity Association Report form.

For details on specific circumstances and any applicable taxes, please contact the appropriate financial authority.

Example: Calculation of HST on “Hall Rent”

Scenario:

  • Net Bingo Revenue =$1,000.00
  • Net BOT Revenue= $500.00
  • HCA’s share of other non-gaming revenue= $45.00

Steps

 

Example

 

Step 1.

Add net bingo revenue (bingo Win minus 8-12% for marketing

fund) plus net BOT revenue = (A)

$1,000.00

Net Bingo Revenue

 

+$500.00

Net BOT Revenue

 

=$1,500.00

(A)

Step 2.

Multiply (A) by 0.55 (Hall Operator’s share of gaming

revenue) = (B)

$1,500.00

 

 

(b) Operator’s share of Gaming Revenue

 

x 0.55

 

= $825.00

Step 3.

Subtract the HCA’s 45% share of non-gaming revenue (concessions etc.), = (C) From the total in (B)

$825.00

 

 

-$45.00

(C) HCA’s share of Non-Gaming Revenue

 

= $780.00

(D) Hall Rent

Step 4.

This number is Hall Rent = (D). The HST is calculated on this number. (D) x .0513 = HST

Payable on Hall Rent.

x 13%

 

HST Payable on Hall Rent

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