On July 1st, 2010, the government has proposed harmonizing, or better said, combining the two existing taxes that we pay on our goods and services. Currently, we pay 5% in GST for services, and 8% in PST for the actual product that we buy.
What does this mean for photography?
When you book a session fee, you are booking my time as a SERVICE. Session fees, therefore, have a 5% GST tax added on because this is a SERVICE. There is nothing tangible in a session fee, no product to hold in your hand, nothing physical was exchanged.
Under the new tax legislation, consumers will now be paying HST on the services that are rendered, raising that 5% tax to 13% (adding the 8% that used to be reserved for tangible products only).
As a photographer, when I sell you a tangible product like prints, canvasses, books, etc., I have to charge you both GST (5%), and PST (8%) on your print order, for a total tax of 13%. When I charge your session fee, I charge only 5% (GST) because a session is a service and not a product that you hold in your hand.
As of July 1st, 2010, all session fees will now be subject to BOTH taxes, increasing the taxable amount by 8%. All business who provide a professional service will be required to request this additional tax amount, and further remit this amount to the government on your behalf. It is not additional income for your photographer, it is a tax which we must remit to the powers that be.
How can we make the most of a poor situation? Book your session fees before July 1st, 2010 and pay only the 5% tax. You can prepay as many sessions as you would like, as far as one year in advance (restricted to one year because session fees may change beyond this timeframe).
If you are looking to provide a Gift Certificate for a friend or loved one, purchasing it before July 1st will save you the additional tax that will be unavoidable after July 1st.
So, let’s make lemonade from these lemons, shall we?
For more information on the new HST tax, visit
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