GST/HST Pause for Holiday Season
The federal government announced on November 21st plans to provide a tax break to Canadians this upcoming holiday season. In an initiative to provide tax relief for all taxpayers in 2024, the Canadian government introduced a temporary two-month tax break on the GST/HST applied to groceries and other holiday essentials. The tax break will occur from December 14, 2024, to February 15, 2025.
As a business owner, you may be wondering how this new initiative will affect your business. Businesses are expected to remove the GST/HST on qualifying goods as of December 14, 2024. Some goods that can be purchased tax-free during the exemption period include select grocery items, restaurant meals (dine-in, take-out, or delivery), beer, wine, Christmas trees, children’s clothing, footwear, toys, and more.
Businesses will also be receiving a tax break, as GST/HST will also be relieved on importing qualifying goods if the goods are imported during the period beginning on December 14, 2024, and ending on February 15, 2025. If you are unsure if the products or goods sold by your business qualify for the proposed tax relief, please refer to the full list of qualifying goods here.
Affected businesses should plan and be prepared to update their systems to accommodate this proposed change, and stay up-to-date on any additional details related to how they are required to implement this change.
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