Canadian small businesses are finding it difficult to adapt to the temporary GST/HST holiday, which begins this Saturday according to the Canadian Federation of Independent Business (CFIB). With only two weeks' notice, many retailers – including those in the agriculture space with farm gate operations -- are struggling to adjust their operations during their busiest season.
“Business owners were given just two weeks to prepare, right in the middle of their busiest season,” said Dan Kelly, CFIB president. “For some small retailers, this has required going through and making judgement calls on thousands of items based on limited guidance from the Canada Revenue Agency. It is going to be a hot mess.”
The confusion extends to consumers, who may have differing interpretations of the rules. CFIB urges shoppers to avoid pressuring staff or demanding tax exemptions for previously purchased items. They recommend directing concerns to Members of Parliament instead of retail workers.
A CFIB survey shows that 75% of businesses find the changes costly and complicated, and only 4% expect improved sales. Most retailers feel unprepared, with limited time to implement these changes correctly.
If you have a farm gate operation impacted by the GST/HST holiday, CFIB has released counter signage and created an online resource to answer frequently asked questions about the holiday. They are also advocating for a $1,000 credit for businesses to offset administrative expenses and leniency for tax errors during this period.
While the GST/HST holiday aims to benefit consumers, small businesses are calling for understanding and support as they navigate this challenging implementation process.