For Ontario residents:
Looks like we might have to charge our customers Harmonized Sales Tax of 13% in the near future, as opposed to the 5% GST we now charge.
We have no sales tax where we’re at. Then again, we have no medical insurance either!
Is that a result of the UK adjusting the VAT, Mike?
i have people offering me “cash jobs” all the time to avoid the little 5% GST i can’t imagine going up to 13%
No.
This is meant to cut red tape for business, so they don’t need to submit paperwork and taxes to two different tax offices, and complying with a myriad of rules, and exemptions.
It is also so that manufactures don’t have to pay taxes for equipment they buy to help the battered manufacturing industry, especially the auto industry.
I think it would be something that would help people who sell products, and it would help big business, I don’t think it will be helpful to us, who sell services.
Just another tax grab by the losers in Ottawa, to inflate their already huge golden parachutes. !!!
I also think it will hurt service based industries, and not help us in the least!
Had a guy call me from Quebec this week. He wants me to clean the windows in his condo here in Toronto. First thing he tells me is that the service industry is all cash work in Quebec because they are so fed up with tax grabs. I can see the same thing happening here in Ontario.
be carefull of the CRA tax sucker calls…
“Hi do you take cash only no gst?” “Sure great” "hey come over, here is the address. "
get there, cop and CRA agent, waiting to give you a gift certificate!
This is an Ontario change, not Ottawa.
I lived through the intro of the GST. What a pain in the butt that was. People were coming out of the woodwork to pay cash. What do you do with a whole load of cash anyway? If you take too much, your company would look insolvent and then you have to explain how you pay your mortgage. It will be a very rocky time for us if they make this change.
I think under the change, since Ottawa will get not 5%, but they split 50/50 the harmonized tax. They will get 6.5%. Which would give them some extra money. But Ottawa usually gives some cash to the province in the first few years they make this change.
