The 1 per cent reduction to the goods and services tax will be welcomed by consumers with open wallets on July 1st. But businesses have to ready for the change. The Canadian Federation of Independent Business has released a checklist to help business navigate the change with as little disruption to their business as possible.
The checklist was developed in collaboration with the federal Department of Finance and the Canada Revenue Agency.
"This isn't just a matter of changing the settings on a cash register. Business owners need to be well prepared for the implementation of the GST rate reduction and we want to play a proactive role to ensure this happens," CFIB's executive vice-president, Garth Whyte said.
CFIB's GST rate reduction checklist provides pointers on issues, such as updating accounting software, on-line payment software, tax-inclusive pricing, and input tax credit calculations that will need to be considered when the rate reduction is implemented.
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It also highlights the general transitional rules established by the Department of Finance. This is the first time the GST rate has been changed since it was introduced in 1991.
For more information on the specific transitional rules or any questions on the GST/HST rate reduction small business owners should contact the Canada Revenue Agency GST hotline at 1-866-959-7797 or consult their web site.
The checklist is also available on-line in PDF format on the CFIB web site.
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