Universal Child Care Benefits

Universal Child Care Benefits

Universal Child Care Benefits

Universal Child Care Benefits

The Universal Child Care Benefits (UCCB) was introduced back in 2006 as a taxable benefit for Canadian families. This benefit is different from the Canada Child Tax Benefit (CCTB). The UCCB was $100 per month per child under the age of six. The government enhanced this benefit in 2015 by increasing the amount to $160 per child under the age of six. Also the government expanded the benefit to include $60 per month for children aged six through 17.

UCCB payments are taxable. At the end of the year the government issues RC62 slips which outlines the total benefit paid out and has to be included into your income.

Who qualifies for UCCB?

To receive the UCCB benefit you have to meet the following four conditions:

  1. You have to live with the child and the child has to be under the age of 18
  2. You must be the person who is primarily responsible for the child’s care and upbringing
  3. You must be a resident of Canada

When to apply for UCCB benefits?

It is critical to apply for UCCB benefits as soon after one of the following takes place:

  1. your child is born
  2. a child stats to live with you
  3. or you become a resident of Canada

How to calculate UCCB amount for 2015-2016?

  • $160 per month for each child under the age of six
  • $60 per month for each child aged 6 through 17

Explnation of how the UCCB has changed over the last year:

GST/HST Rates Across Canada

Canadian Provincial Tax Map 2015

GST HST Rates Across Canada

 GST/HST Rates Across Canada

With eCommerce more and more businesses are selling goods and services across Canada. This has resulted in confusion on which sales tax rates apply. Majority of Canadian businesses must collect sales taxes from customers and remit them to the government. Depending on the province your business operates in, the rates are different.

Based on the province or territory in which your business operates in, you need to collect either:

  • A combination of GST and PST
  • GST only
  • HST

 What sales tax should I charge my customer in another province?

Generally speaking the sale tax you charge your customer depends on where the supply of the goods or services is made. If a business in Alberta sends products to a business in Ontario, the place of supply is Ontario and you will be charging your customer the HST at the rate for Ontario.

GST/HST sales tax rates that apply in Canada by province:

Province Type PST GST HST Total Tax Rate
(%) (%) (%) (%)
Alberta GST 5 5
British Columbia GST+PST 7 5 12
Manitoba GST+PST 8 5 13
New Brunswick HST 13 13
Newfoundland and Labrador HST 13 13
Northwest Territories GST 5 5
Nova Scotia HST 15 15
Nunavut GST 5 5
Ontario HST 13 13
Prince Edward Island HST 14 14
Quebec GST+QST *9.975 5 14.975
Saskatchewan GST+PST 5 5 10
Yukon GST 5 5

 

 

What sales tax should I charge my customer in another Country?

If you sell good outside of Canada this is considered a zero-rated supply and you do not charge your customers GST or HST. However, if the goods are picked up from Canada then the supply is made in Canada and you are required to charge GST/HST depending on your respective province.

How to calculate GST/HST?

Example 1: In Alberta, where only GST applies and you sold a $100 item.

Retail price: $100
GST (5%): $5
Total: $105

Example 2: In Ontario, where HST applies and you sold a $100 item.

Retail price: $100
HST (13%): $13
Total: $113

Example 3: In Manitoba and Saskatchewan, PST, like GST, is calculated on the retail price only. The two taxes are then added to the retail price for your total. For example, in Manitoba:

Retail price: $100
GST (5%): $5
PST (7%): $7
Total: $112

 Visit the CRA website for more information