The Canadian government has announced a temporary Goods and Services Tax (GST) and Harmonized Sales Tax (HST) holiday, effective from December 14, 2024, to February 15, 2025. This initiative aims to provide financial relief to consumers during the holiday season by exempting specific items from these taxes.
Eligible Items:
Prepared Foods and Beverages:
Prepared Meals: Salads, sandwiches, pre-made meals, and similar items.
Snacks: Baked goods, candy, chips, granola bars, and related products.
Non-Alcoholic Beverages: Coffee, tea, carbonated drinks, juices, and smoothies.
Eligible Alcoholic Beverages:
Beer and Malt Beverages: Such as canned or bottled beer.
Wine, Cider, and Sake: Including fortified versions with an alcohol by volume (ABV) of 22.9% or less.
Spirit Coolers and Premixed Alcoholic Beverages: With an ABV of 7% or less.
Children's Products:
Clothing and Footwear: Apparel and shoes designed for children.
Diapers: All types of children's diapers.
Car Seats: Infant and toddler car seats.
Toys: Various toys intended for children.
Other Items:
Jigsaw Puzzles: Suitable for all ages.
Video Game Consoles and Accessories: Including controllers and physical video games.
Physical Books and Printed Newspapers: Traditional printed reading materials.
Holiday Decorations: Christmas trees, Hanukkah bushes, and similar decorative items.
Non-Eligible Items:
Alcoholic Spirits and Liqueurs: Beverages exceeding the specified ABV limits.
Cannabis Products: Including those sold as food or beverages.
Dietary Supplements: Products consumed for therapeutic or preventive effects.
Pet Food: All types of pet food.
Vending Machine Sales: Qualifying food and beverages sold through vending machines.
Adult Clothing and Footwear: Even if purchased for children.
Specialized Clothing and Footwear: Items like bowling shoes, ski boots, and wetsuits.
Collectibles: Items not intended for play or learning, such as collectible dolls or hockey cards.
Digital Products: Downloadable or online-only games, eBooks, and electronic audiobooks.
Holiday Decorations: Items that are not actual trees, including Christmas tree decorations and poinsettia plants.
Implementation Details:
Duration: The tax holiday is in effect from December 14, 2024, to February 15, 2025.
Applicability: The tax relief applies to both business-to-consumer (B2C) and business-to-business (B2B) transactions.
Provincial Considerations: The tax relief pertains to the federal GST and the combined federal-provincial HST. In provinces with separate Provincial Sales Taxes (PST), such as British Columbia, Manitoba, Quebec, and Saskatchewan, the PST will continue to apply unless provincial governments adopt similar tax holidays.
Business Compliance:
Businesses are responsible for ensuring that GST/HST is not charged on qualifying items during the specified period. This requires updating sales systems to apply a zero rate to eligible transactions. The Canada Revenue Agency (CRA) advises businesses are not required to partake but are strongly encouraged to make reasonable efforts to comply with the new tax exemptions during this holiday season.
For more detailed information, businesses and consumers can refer to the official CRA guidelines on the GST/HST holiday.
To keep updated with our latest news articles by having them sent straight to your email please visit www.smalltownproductions.org/signup
Link for Donations:
We are solely independent with our news and our main source of funding is the amazing donations provided by readers like yourself to the link below. If you value non-biased and truthful news based on facts, please anything helps us keep you informed and in the know
Comments