On November 27, 2024, Finance Minister Chrystia Freeland tabled Bill C-78. Included in this bill, the Canadian government has announced a significant tax relief initiative aimed at easing the financial burden on consumers during the holiday season. This temporary measure will provide a two-month GST/HST break on a wide range of holiday essentials. Here’s what you need to know.
Key Highlights
1. Tax Relief Period
-
- The GST/HST relief will be in effect from December 14, 2024, to February 15, 2025.
- This initiative is designed to help Canadians save on essential purchases during the holiday season.
2. Eligible Items
-
- The bill proposes to zero-rate qualifying goods and services, meaning there should be no impact on eligibility to claim input tax credits.
- A list of the categories covered under the relief is outlined below. Please note that there may be exceptions in each category. It is important to verify that the goods and services you sell qualify, before providing the relief.
-
-
- Children’s clothing
- Children’s footwear
- Children’s diapers
- Children’s car seats
- Print newspapers
- Printed books
- Christmas trees or similar decorative trees
- Food or beverages for human consumption
-
-
-
-
- Including certain alcoholic beverages, carbonated beverages, candies, chips, granola products, ice cream, prepared salads.
- Also includes prepared meals and beverages (dine in or take out).
-
-
-
-
- Select children’s toys
- Jigsaw puzzles, for all ages.
- Video-game consoles, controllers or physical game media (e.g., a video-game cartridge or disc).
- For a full list of qualifying goods and services, please see this Department of Finance news release.
-
3. Implementation
-
- Businesses are expected to remove the GST/HST on qualifying goods at checkout starting December 14, 2024.
- The relief applies to both domestic purchases and imported goods during the specified period.
If your business is impacted by these changes, please contact our Indirect Tax Team at HST@rlb.ca for support.
