Saturday, November 3, 2018

Buyers beware of Canadian Taxes

I have never understood taxes in Canada.  My first experience with taxes in Canada was when I bought something for the first time ever.  I thought it was 10 bucks! What's with the extra 5%, 8%, or 13%, etc. on top of the 10 bucks?  

In Ontario, there was a GST which means good and services tax and then there was a PST which means provincial sales tax then one day the two combined and now there is only an HST which means harmonized sales tax.

This morning I was thinking that it would be funny to collect taxes in terms of inventory or services instead of cash.

For example, let say I sold 100 chairs, I would keep 13 chairs for the tax man when he shows up.  If he is unable to bring the 13 chairs back, I will offer delivery but I will have to take a few chairs back for delivery services I provided.  This way, I can offer my customer tax free purchases.

Or let say I provided services to someone, when the tax man arrives, I will let him know what 100 percent of my work is and that I can only do 13 percent of the work I performed as payment for the taxes.  The tax man will have to wait till I have performed the same service 13 times before I can give the tax man 100 percent of my service.

I hope my examples made sense.

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