Attention Businesses:
Holiday Tax Break
Information
The Government of Canada announced on November 21, 2024, a temporary GST/HST Holiday Tax Break on specific items, effective December 14, 2024, to February 15, 2025. This initiative is designed to provide Canadians with financial relief during the holiday season. However, the timing and scope of this measure may pose challenges for businesses, especially during this already busy season. Here’s what you need to know to stay compliant and support your customers.
Key Details About the GST/HST Holiday Tax
Qualifying Items:
- Food & Beverages: Prepared foods, non-alcoholic drinks, and alcoholic beverages (ABV of 7% or less).
- Children’s Products: Clothing, toys, diapers, and car seats.
- Other Items: Books, jigsaw puzzles, and Christmas trees.
Your Responsibilities:
- Remove GST/HST on Eligible Items: Update point-of-sale systems to ensure GST/HST is not applied to qualifying items during the relief period.
- Maintain Records: Keep detailed sales records distinguishing between tax-exempt and taxable items.
- Educate Staff: Ensure employees understand which items qualify for the tax break to assist customers and avoid errors.
- Communicate with Suppliers: Work with your supply chain to ensure GST/HST relief is applied throughout.
For more detailed information, please refer to the official Government of Canada announcement.