On December 9, Chamber staff attended the Government of Canada’s information session regarding the upcoming GST/HST break, which is set to be effective from December 14, 2024, to February 15, 2025.
Details important to know:
- This temporary tax break will remove the federal and provincial tax from December 14, 2024, to February 15, 2025, on certain qualifying goods.
- This will impact all levels of the supply chain. The importation of qualifying goods will not be taxed if the goods are imported during this period (for example: a restaurant getting supplies from a wholesaler).
- If a business makes an error and accidentally charges HST, a refund should be given to the customer.
- Businesses should keep their records and remit and report their regular GST/HST as usual.
- GST/HST registrants can claim an input tax credit for the GST/HST paid or payable on expenses made to provide zero-rated supplies (i.e.: you can still claim an input tax credit on the tax of getting the qualifying products).
Qualifying items for this tax break in general include:
- Children’s clothing and footwear
- Children’s diapers, car seats, and toys
- Jigsaw puzzles
- Video game consoles, controllers, and physical video games
- Physical books
- Printed newspapers
- Christmas and similar decorative trees
- Food and beverages
The above list is not as “cut and dry” as it appears and there are lists within these lists of qualifying goods/eligible items. For example, beer and wine will be exempt from tax, but not spirits or liqueurs.
The Government of Canada has populated a website page with more information and a break-down of eligible items: https://www.canada.ca/en/services/taxes/child-and-family-benefits/gst-hst-holiday-tax-break.html.
We were also provided with a toll-free number you can call if you need further clarification: 1-800-959-8287.