GST/HST Break: What You Need to Know

The Tax Break for All Canadians Act (Bill C-78) is now law. This temporary GST/HST relief will apply to select items from December 14, 2024, to February 15, 2025. Here’s what you need to know as a shopper or business owner.

Which Items Qualify for the GST/HST Break

From food and beverages to children’s products, the following categories are exempt from GST/HST during the relief period:

• Food and beverages purchased at grocery stores or restaurants, including catering services.
• Children’s clothing, footwear, and diapers.
• Children’s car seats and toys, including jigsaw puzzles for all ages.
• Video game consoles, physical video games, and controllers.
• Physical books and printed newspapers.
• Christmas trees and decorative items for the holiday season.

Key Conditions

To qualify for the GST/HST relief:

1. The item must be paid for in full between December 14, 2024, and February 15, 2025.
2. The item must be delivered or made available to the buyer within the same period.

This tax relief applies throughout the supply chain and to imported goods that meet the conditions.

How to Get This Tax Break as a Shopper

You will automatically receive the GST/HST break at checkout when purchasing qualifying items. No additional action is needed unless you’re charged GST/HST in error.

What to Do if You’re Charged GST/HST in Error

• Request a refund from the retailer or supplier.
• Keep your receipt as proof to ensure an accurate refund.

What Businesses Need to Do

Key Actions for Businesses:

• From December 14, 2024, to February 15, 2025, businesses must not charge GST/HST on qualifying goods and services.
• Continue to report and remit regular GST/HST for non-qualifying items.

Compliance Expectations

The CRA encourages businesses to make a reasonable effort to comply with the law. However, businesses engaging in wilful non-compliance, such as collecting GST/HST and not remitting it, may face enforcement actions.

Where to Get Help

• Sign up for CRA’s stakeholder message electronic mailing list for updates.
• For technical GST/HST questions, call 1-800-959-8287.

Additional Notes

This GST/HST break offers temporary relief on everyday essentials and specific seasonal items. For detailed guidance, businesses can consult CRA’s official resources or contact support directly.

Make sure you check receipts and stay informed about the latest updates during this limited period.

More…

• https://www.canada.ca/en/services/taxes/child-and-family-benefits/gst-hst-holiday-tax-break.html 
• https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/gst-hst-break-more-money-your-pocket.html
• https://www.newswire.ca/news-releases/tax-tip-gst-hst-break-more-money-in-your-pocket-875466235.html