Shoppers, businesses in Ottawa adjust to life under tax holiday
Sales tax taken off wide variety of items until mid-February
The federal government's two-month GST/HST holiday kicked off Saturday, aiming to give Canadians relief on certain goods — but some local businesses say its timing has created complications during their busiest period of the year.
"We had people waiting at the door to come in, and it was steady the entire day," said Patti Taggart, owner of Tag Along Toys in downtown Ottawa.
Until Feb. 15, sales tax will not be charged on a wide range of items like restaurant meals, groceries, children's toys and clothing, print books and magazines and even Christmas trees.
The days leading up to the tax holiday were stressful, Taggart said. She spent hours preparing her sale system to ensure taxes were properly removed.
"My biggest concern, obviously, was that the cash register was running smoothly," Taggart said. "We went in after the store closed Friday night to test the system, and thankfully, it went smoothly."
But online orders posed difficulties because the store's website couldn't fully adjust, she explained, adding she refunded customers by asking them to pay at the cash when picking those orders up.
"Everything else was smooth, and we had a great day," she said. "We had lots of happy people, and they were buying more than they probably expected because they were getting the tax off."
'A fair amount of work'
Robert Kratzenburg, the owner of Kiddie Cobbler on St. Laurent Boulevard, says he's had his own challenges.
Kratzenburg, who's been in the retail business for over 40 years, said it was hard to figure out which items were eligible for the exemption.
"It was a fair amount of work on the back end," he said. "Trying to figure out what the exemptions [were] was a little complicated. Everything was made available online [but] did you receive a call? Were you given guidance? No."
Those sorts of challenges are why the Canada Revenue Agency created an online tool and hotline to help, said Minister of Small Business Rechie Valdez.
Valdez said the CRA will take a "practical approach" to enforcement and won't go after businesses that make reasonable efforts to comply with the legislation.
Despite the extra work, Kratzenburg said he was happy that the tax holiday provided customers with savings.
"The bottom line is that we really want to see the consumer benefit," he said. "Everyone can use that these days."
Some shoppers didn't know
Among shoppers at the Rideau Shopping Centre, reactions to the first few days of the GST holiday varied.
Adam Palamar, who spoke to CBC in the midst of his shopping trip Saturday, said the tax holiday won't impact his spending habits.
"I'm getting Christmas gifts just the same," Palamar said. "A little less tax is nice, but it doesn't make a huge difference."
Ruth Dorsainville, another shopper, hadn't explored the exemptions in-depth but said with the rising cost of living, any relief is welcome.
"Saving any amount of money right now is definitely something I look forward to," she said.
Alan McDonald was heading through the mall after having breakfast with friends, and said he didn't know the holiday was in effect until they sat down to eat.
"They announced that we don't have [to pay] any GST. Some of us put that into a tip," he said. "Otherwise it was a pretty nice surprise to see less of a bill."
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