(Jun. 11/12) CRFA is opposing the provincial government’s decision to retroactively eliminate the vendor commission – an entity which has helped compensate operators for the cost of collecting the provincial sales tax. Retailers (including foodservice operators) have been entitled to rebates of up to $500. With harmonization in April 2013, the provincial government will rely on federal officials to collect the HST, thereby eliminating the need for a rebate.
In May, retailers were notified that effective April 2012 the commission would be eliminated. However, operators will still incur the costs of collecting the PST until April 2013. Changing the vendor commission a year before harmonization will penalize small businesses.