The federal government's proposed two-month "tax holiday" for Canadians is just over two weeks away. While shoppers won't be paying the GST on select items, businesses are now scrambling to figure out how it will work. Preparations are underway and store owners are busy getting ready, figuring out what's included in their business for the exemption as well as how to implement that change in the pay system before the two-month initiative comes into effect Dec.
14. At Hintonburg Kids, holiday shopping is well underway. Owner Susie Pearson is also preparing for waiving the tax when the "tax holiday" starts.
"The most expensive thing that we sell in the store is $150. Saving the tax will save just under $20 if somebody buys it after December the 14th," said Pearson. "Customers run the risk.
if they wait until December 14th to make their purchases, that we just might not have it in stock." Pearson collected a number of items to give an example of what the savings could look like. The collection included a children's book, toy, sleep sack, and shoes, which rang in for a total of $300.
The same group of items would cost $274.99 without the tax included, saving $25. Canadian businesses need to itemize everything to calculate what's included and what's not.
The Canadian Federation of Independent Business (CFIB) said most businesses believe that work will be "costly and complicated," amounting to a median of $1,000 in additional costs for reprogramming their point-of-sale (POS) systems.
