Hello there, CBC came by yesterday to ask what my thoughts were about the HST as a small business owner.
For us, it is a very good thing. So much so, we’re going to pass on the savings to our customers! But more on that in a bit.
First: Is your eCommerce store HST ready?
Most every business is of course affected. For those in Ontario with eCommerce stores (and who are already registered for GST), you should already be charging GST, PST, and HST depending on where you are shipping your products.
If you haven’t done so yet, you need to prepare now to update your shopping cart to the new rules. (If you need help – just let us know!).
There are nuances and transition rules, so check with your accountant or visit the Canada Revenue Agency website.
(And don’t forget the small business credit to help with the transition)
OK, back to your HST savings.
Over this next year, we will be benefiting from the transition to HST.
• We get to save 8% on all goods that we purchase! (That extra 8% is fully deductible as an Input Tax Credit – PST wasn’t).
• Our customers are all businesses, and they get to deduct any extra tax we will charge.
• The cost of our print design service just went down: Because print design is a service resulting in a tangible good, PST was applicable. Now it is fully refundable as part of the HST.
• Our administrative expenses go down a little.
• And finally everyone will be calling the tax by its proper name (PST is actually RST – for some reason RST never stuck…).
Instead of waiting for market pressures to reduce our rates a little, we are going to front-load the PST savings for the year and give all our clients 10% off any new web design, web development, email marketing, logo and print design projects for the month of July only.
If you’ve been thinking of doing a project – now is the time!
We have limited resources, so please let us know as quickly as you can.