Alberta E-Future CBSC Alberta

E-Business Alberta | The Alberta E-Future Centre blog
E-Business Alberta | The Alberta E-Future Centre blog


GST Change Is Your Sales Software Adaptable

The Federal Government of Canada is proposing that the GST (Goods and Services Tax) will be reduced from 7% to 6% on July 1, 2006. It is uncertain if this change will happen but if it does happen it will affect nearly all small and medium sized businesses. Make sure your business is prepared by checking to see if your current business processes are adaptable.

If your business conducts e-commerce (sells products online) with a “shopping cart”, if you use accounting software or an invoicing software can these programs be altered to charge the correct amount of GST?
Some software will allow you to change the amount of GST or tax that you charge. Some software might be hard coded or built into the software and unable to be changed by the user. If your software is hard coded then your e-business may need to look for contingency plan. Will your business need new software, will you need to hire a programmer re-code your software or maybe there be an upgrade “patch” from your software supplier? Take some time to explore your business situation before July 1, 2006.

Doug Bruce and Lucie Charron (2006). “GST Transition: Results of CFIB Survey on GST Rate Reduction“. Retrieved May 17, 2006, the article discuses the readiness of small to medium sized enterprises and the estimated costs they may face.

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