As the Harmonized Sales Tax goes into effect in Ontario and British Columbia, there are new guidelines for small business owners who are having a hard time complying with the new laws. According to IT Business Canada, there are a few steps that Canadian businesses can take in order to adjust to the new tax structure.
The first suggestion is to meet with a tax professional and go over the various ways in which the business will be impacted by the HST. Second, it is important for small businesses to make sure that all sales devices, such as cash registers, are updated to reflect increased taxes.
It is also necessary to update promotional material which may reflect a price that does not include the HST. This may include fliers, advertisements, signs or anything else which would make a customer think they were getting a different deal than a business is currently offering.
Many in the small business community were opposed to the implementation of the HST in the first place. A survey conducted by Angus Reid Public Opinion for Intuit Canada, revealed that the majority of small business owners in Ontario and British Columbia, 79 and 76 percent, respectively, were against the adoption of the HST.
