The Law Society of Upper Canada's FAQ's address the transition:
Effective July 1, 2010, the Harmonized Sales Tax (HST) will be implemented. The HST combines the GST and the Provincial Sales Tax (PST) into a single federally administered tax and work completed by lawyers and paralegals after July 1, 2010, will be subject to the full HST. Lawyers and paralegals should contact the CRA directly ....to confirm how the HST applies to specific legal services and disbursements, and should consider consulting with an accounting or tax professional to discuss how the implementation of the HST will affect their internal accounting and invoicing systems.
We've previously expressed concern at the significant, inflationary impact of this new tax on fees for legal services - see our November 2009 post, The HST Tax on Access to Justice.
- Garry J. Wise, Toronto