Welcome to the GST/HST Holiday Tax Break!
Starting December 14, 2024, to February 15, 2025, the Canadian government is offering a temporary break from the GST/HST on qualifying goods to give Canadians a little extra relief during the holiday season.
What’s Included?
From festive decorations to essentials for your family, a wide range of goods will be eligible for the GST/HST holiday tax break. Below are some of the items covered:
Holiday Essentials:
- Christmas trees (natural or artificial)
- Holiday decorations and ornaments
- Toys for children
- Video game consoles, controllers, and physical video games
- Jigsaw puzzles
- Children’s clothing and footwear (excluding sports/recreational items)
- Children’s car seats and diapers
- Physical books (including audiobooks that are 90% spoken)
Groceries & Food:
- Food and beverages (excludes alcoholic beverages except beer, wine, ciders, and spirit coolers with up to 7% ABV)
- Restaurant meals and take-out food
How It Works:
- No GST/HST Charged: When you purchase any of the qualifying items between December 14, 2024, and February 15, 2025, no GST/HST will be applied at checkout.
- For Qualifying Goods: The item must be both paid for in full and delivered or made available between the dates above.
- Online Shopping: If you’re shopping online, items will be considered delivered when they arrive at your address or when the supplier transfers them to a shipping service (common carrier or courier).
Who Benefits from This Break?
- Families: Save on children’s essentials like clothes, toys, diapers, and more.
- Holiday Shoppers: Get your Christmas trees, festive decor, and holiday gifts without the added tax burden.
- Everyone: Whether you’re stocking up on food, gifts, or even ordering a cozy family dinner from a restaurant, enjoy this seasonal tax break.
What You Need to Know:
- Qualifying Period: The GST/HST will not be charged from December 14, 2024 to February 15, 2025.
- Eligible Purchases: Both retail and wholesale purchases are eligible, making it easier for businesses and individuals alike to benefit.
- No Action Required: Shoppers automatically receive the tax break on qualifying goods—no forms or extra steps needed!
In Participating Provinces:
For provinces like Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island, the provincial portion of HST will also be removed on qualifying goods, leading to even more savings. In these areas, the total tax relief is GST + HST.
Why This Matters:
The federal government expects that this measure will provide up to $1.6 billion in tax relief over the two months. A typical family spending $2,000 on qualifying goods will see savings of up to $100 on their purchases!
How to Make the Most of This Break:
- Shop Smart: Whether you’re buying gifts, stocking up on essentials, or planning holiday meals, make sure your purchases fall within the qualifying period.
- Plan Your Payments: Ensure that any partial payments for qualifying goods are made between December 14, 2024, and February 15, 2025.
- Online Shopping: For online orders, check the delivery dates to ensure that your items qualify for the tax break.
Frequently Asked Questions (FAQs)
1. How do I know if an item qualifies?
- Check the list of qualifying goods, including children’s clothing, books, holiday decorations, and certain food and beverages.
2. What happens if I made a deposit before December 14?
- As long as the remaining amount is paid between December 14, 2024, and February 15, 2025, and the item is delivered within this timeframe, it qualifies.
3. Does this apply to online orders?
- Yes! If your online order is delivered within the qualifying dates, you won’t be charged GST/HST.
This article is posted at wolterskluwer.com
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