TORONTO, ON. April 27, 2010— Small business owners in British Columbia and Ontario are unprepared for the arrival of the new harmonized sales tax (HST) according to a recent survey conducted by industry experts BizLaunch. The survey revealed 52% of respondents said they do not feel prepared for the new HST, while 41% of business owners are unsure of what the effects of the new tax will be.
“A lack of information has left small business owners out-of-the-loop, so we need to bridge this knowledge gap and make sure these people are prepared,” said Andrew Patricio, BizLaunch Co-founder.
HST will take effect July 1, 2010 in British Columbia and Ontario. The new HST will combine the provinces’ current provincial sales tax (PST) with the federal goods and services tax (GST), to create a single harmonized sales tax administered by the federal government. HST will total 13% in Ontario, and 12% in British Columbia.
The survey conducted by BizLaunch.ca also revealed:
- 48% feel that HST will be harmful to their business
- Over 70% of respondents believe the HST will increase the price of goods and services, while only 1% of those surveyed believe that HST will actually increase sales.
- 40% responded that they are not aware of the HST obligations and entitlements for businesses.
- Top concerns include: confusion about changing over to new accounting systems, explaining the new tax to customers, and an increase in the price of goods and services overall.
“Integrating a new tax can be confusing for businesses, especially those that have never charged PST,” added Patricio, “with May 01, 2010 being the first date for compliance small business need to get the ball rolling.”
BizLaunch will be offering a number of free 60-minute webinars to make it easier for small businesses to handle the incoming tax. The seminars will focus on the affects of HST on selling products and services, setting prices, preparing budgets, and record keeping. For more information visit www.bizlaunch.ca
Canada’s largest small business training company, BizLaunch Small Business Experts deliver practical, ready-to-apply how-to advice in a unique style that’s friendly, fun and informative. Founded in 2003 by a pair of entrepreneurs passionate about advising startups, BizLaunch has since trained over 20,000 new business owners worldwide. Company customers include STAPLES, Bell, Visa, Scotiabank, Cisco, ADP, Deluxe and Microsoft.
