
Canada has introduced a temporary GST/HST break from December 14, 2024, to February 15, 2025. This means no GST/HST will be charged on a variety of goods, including food and beverages, children’s items (clothing, toys, etc.), entertainment (books, video games, etc.), and holiday items like Christmas trees. The tax break applies automatically at checkout, so shoppers don’t need to do anything. Businesses should not charge GST/HST on qualifying items during this period.
The Tax Break for All Canadians Act (Bill C-78) is now law!
What qualifies?
- Food and Beverages: Groceries, prepared meals, snacks, drinks (including beer, wine, cider)
- Children’s Essentials: Clothing, footwear, diapers, car seats, toys
- Entertainment: Video game consoles, controllers, physical video games, jigsaw puzzles, books, newspapers
- Holiday Items: Christmas and similar decorative trees
For Shoppers:
- The GST/HST will be automatically removed from qualifying purchases at checkout.
For Businesses:
- Do not charge GST/HST on qualifying items during the break period.
- Maintain records and remit GST/HST as usual.