Starting December 14, 2024, Canadians will see the GST/HST removed on a range of essential items, providing temporary relief during the holiday season. This tax break will apply to items such as:
- Groceries, including prepared foods like vegetable trays, salads, and sandwiches
- Restaurant meals (dine-in, takeout, or delivery)
- Snacks (chips, candy, granola bars)
- Alcoholic beverages under 7% ABV (beer, wine, cider, pre-mixed drinks)
- Children’s clothing, footwear, car seats, and diapers
- Children’s toys (board games, dolls, video game consoles)
- Books, print newspapers, and puzzles
- Christmas trees
(For a comprehensive breakdown, please see the Government of Canada’s list here)
This measure aims to alleviate affordability challenges through February 15, 2025.
Key Details for Business Owners:
- GST/HST will not be charged on qualifying items that are:
- Paid for in full and delivered (or made available to the buyer) between December 14, 2024, and February 15, 2025.
- Items that are purchased retail or wholesale, including imported goods that meet the qualifying criteria.
- What to Do as a Business:
- Do not charge GST/HST on qualifying goods and services during this period.
- Maintain records and continue to remit and report your regular GST/HST as usual.
For detailed guidance, visit the Government of Canada’s GST/HST Holiday page.
If you have questions, the Canada Revenue Agency (CRA) has set up a hotline: 1-800-959-5525.
Chamber of Commerce Response
The Canadian Chamber of Commerce welcomed the initiative as “an important first step” but emphasized the need for lasting solutions. “The root causes of Canada’s affordability challenges cannot be fixed with half-measures or temporary relief,” stated Jessica Brandon-Jepp, Senior Director, Fiscal and Financial Services Policy. The Chamber called for a clear economic plan that promotes business growth, job creation, and efficient supply chains while reducing red tape and high costs.
While this tax relief is appreciated, a long-term approach remains essential to tackle affordability challenges for all Canadians.
