Ariaran CPA

December 18, 2024

GST/HST Tax Break

Holiday Savings Unwrapped: Everything You Need to Know About Canada’s GST/HST Tax Relief

We’re excited to inform you that the Government of Canada has announced an HST Holiday, offering a fantastic opportunity for your business to attract more customers and boost sales! 

Here’s how you can take advantage of this: 

  •  Highlight the HST savings to your customers in your promotions. 
  •  Share this news through your marketing channels to drive traffic to your store or online shop. ∙ Change the POS system to reflect the sales values 

The government is proposing that the GST/HST on groceries and essential holiday items be fully relieved from  Dec. 14, 2024, to Feb. 15, 2025. This proposal aims to provide financial assistance to all Canadians, particularly those  who are struggling with rising costs of living during the holiday season. 

How it works 

Businesses are expected to remove the GST/HST on qualifying goods at checkout for two months starting Dec. 14, 2024.  GST/HST relief will apply to qualifying goods that are delivered to the purchaser and paid for during the relief period.  This also applies to goods that are imported during the two-month period. 

What goods qualify? 

  • Temporary GST/HST relief applies to the following goods: 
  • Children’s clothing – Garments designed for babies and children, including baby bibs, bunting blankets,  receiving blankets and children's garments up to girls’ size 16 or boys’ size 20.  
  • Children’s footwear – Footwear (other than certain footwear, such as that used exclusively in sports or recreational activities) designed for babies or children with an insole length of 24.25 centimetres or less.  
  • Children’s diapers – Products designed for babies or children, including diapers, diaper inserts, liners,  training pants and rubber pants.  
  • Children’s car seats – Restraint systems or booster seats conforming to Canadian safety standards.  
  • Print newspapers and printed books – Newspapers containing news, editorials, feature stories, and printed books or updates of such books.  
  • Christmas trees – Natural and artificial. 
  • Food or beverages – Items for human consumption, including certain alcoholic beverages, carbonated beverages,  candies, chips, granola products, ice cream and prepared salads. The proposed relief extends to prepared meals and food and beverages sold at an establishment, such as a restaurant, pub and coffee shop.  
  • Select children’s toys – Products designed for use by children under 14 years of age, including board games, card games, dolls, plush toys and construction toys.  
  • Jigsaw puzzles  
  • Video game consoles, controllers or physical game media  

Important considerations  

∙ Retailers will need to adjust their point-of-sale systems to reflect the GST/HST relief on these qualifying goods. If you have any questions or require further clarification on the impact of this temporary relief on your business,  please do not hesitate to contact us. Our team of experts is ready to assist you.

 

Tags

  • GST/HST Tax Break