Leave a commentEffective February 4, 2013, circulation of the penny coin by the Royal Canadian Mint ceases. This affects only cash transactions. The cent will remain Canada’s smallest unit for pricing goods and services. Non-cash or electronic payments such as cheques, credit and debit cards and gift cards will continue to be settled to the cent.
Guidelines published by the Department of Finance include the following:
- Businesses may accept the coin as a means of payment if they so choose.
- Businesses are allowed to make change in pennies if they wish.
- Pennies can continue to be redeemed at financial institutions. Financial institutions may require that pennies be rolled.
Price Rounding on Cash Transactions
When pennies are not available, cash transactions should be rounded to the nearest five-cent increment in a fair and transparent manner. Rounding should only be used on the final bill of sale after the calculation of GST/HST, where applicable.
Example of rounding for cash transactions:
[ws_table id=”10″]
For more information visit the Tax Tips website