The staff of Love Local Manitoba at their St. Vital Centre location. (HANDOUT)
WINNIPEG — As the federal government prepares to offer Canadians a GST holiday on some retail items this Saturday, at least one Manitoba business says the change is confusing and time-consuming to make.
Love Local Manitoba, a store showcasing Manitoba-made food, drink, and home products, is feeling the strain of extra stress this holiday season. On top of the hustle and bustle of Christmas shopping, the implementation of the new GST holiday rules is adding significant pressure.
“The holiday shopping season is already in full swing, and our staff is stretched pretty thin,” said Peter Fehr, co-founder of Love Local Manitoba.
“Now, on top of everything else, we have to navigate complex tax regulations, become tax experts overnight, and implement these changes with very short notice.”
Fehr says it’s a complicated process to implement in such a short period of time.
“We need to determine which products are tax-exempt and adjust our POS (point of sale) and online shop platforms to ensure the tax settings are accurate.”
Fehr is asking customers for patience and understanding during this transition.
“While we’re doing our best to ensure accurate taxes are applied to eligible products, we may not get everything 100% right immediately.”
The Canadian Federation of Independent Business (CFIB) is echoing Fehr’s ask, saying customers need to be patient with retailers.
“Given the confusing set of rules and lack of time, it will be nearly impossible for most retailers to implement this right,” said Dan Kelly, CFIB president.
“This temporary tax change has created brand new tax categories that have never existed before, including differential sales tax rates on toys marketed at adults or children, drinks based on their percentage of alcohol or collectible dolls versus dolls for play. Consumers will bring their own interpretation, expecting part-time clerks and store owners to have become sudden tax experts on rules that even CRA is struggling to sort out.”
A list of tax-exempt items can be found on the government’s website. The GST tax holiday runs from December 14, 2024 to February 15, 2025.
