- The federal government announced a temporary GST/HST holiday on certain goods from Dec. 14, 2024, to Feb. 15, 2025
- This tax relief applies to both the federal GST and the provincial portion of the HST in participating provinces
- Qualifying goods must be paid for and delivered during the Relief Period to be eligible
- The relief also covers GST/HST on goods imported into Canada during this period
- Canadian businesses need to update their systems to reflect this change to prevent consumer disputes and reduce audit risks
- Provincial sales taxes in British Columbia, Saskatchewan, Manitoba, and Quebec are not included in this federal initiative
- GST/HST typically ranges from 5 to 15 percent and applies unless goods are exempt or zero-rated
- The temporary relief might use existing zero-rating provisions which include essential items like basic groceries
- Items eligible for this GST/HST relief include children’s clothing, select toys, puzzles, video games, print media, Christmas trees, and certain food and beverages
- The Department of Finance has not yet proposed specific legislative changes for this relief initiative
- GST/HST registrants are required to collect taxes on behalf of the government, adding administrative burdens
Source: blg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
