The Canadian government has announced a temporary suspension of the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) on select items from December 14, 2024, to February 15, 2025.
This initiative aims to provide financial relief to Canadians during the holiday season by reducing the cost of essential goods and services.
Qualifying Goods and Services
During this period, the following items will be exempt from GST/HST:
- Groceries and Prepared Foods: This includes all food items, whether purchased from grocery stores or prepared meals from restaurants, cafes, and food trucks.
- Children’s Essentials: Items such as clothing up to girls’ size 16 and boys’ size 20, footwear with an insole length of 24.25 cm or less, diapers, and car seats that meet Canadian safety standards.
- Holiday Items: Both natural and artificial Christmas trees and similar decorative trees.
- Books and Newspapers: Printed books and newspapers containing news, editorials, and feature stories of general interest.
- Children’s Toys and Games: Toys designed for children under 14, including board games, card games, dolls, plush toys, construction toys, and jigsaw puzzles.
- Video Game Consoles and Accessories: This encompasses video game consoles, controllers, and physical game media.
Implementation Details
Businesses are expected to remove the GST/HST on qualifying goods at the point of sale during the specified period.
The tax relief applies to items delivered to the purchaser and paid for in full between December 14, 2024, and February 15, 2025. For imported goods, the GST/HST relief applies if the items are imported during this timeframe.
Estimated Savings for Canadians
The government estimates that this tax relief will provide approximately $1.6 billion in federal savings for Canadians. For instance, a family spending $2,000 on qualifying items could save $100 in GST alone.
In provinces like Ontario, where the HST is also suspended, the savings could increase to $260 for the same amount spent.
| Category | Examples | GST Savings | HST Savings (Ontario) | Total Savings (Ontario) |
|---|---|---|---|---|
| Groceries and Prepared Foods | All food items, restaurant meals, snacks | $50 | $130 | $180 |
| Children’s Essentials | Clothing, footwear, diapers, car seats | $20 | $52 | $72 |
| Holiday Items | Christmas trees, decorative items | $10 | $26 | $36 |
| Books and Toys | Printed books, newspapers, children’s toys, video game consoles and accessories | $20 | $52 | $72 |
Additional Financial Support
In addition to the GST/HST holiday, the government plans to provide a one-time $250 rebate to 18.7 million Canadians in early 2025. This measure aims to further alleviate financial pressures during the holiday season.
This temporary tax relief is designed to ease the financial burden on Canadians during the holiday season, allowing for more affordable access to essential goods and services.
What is the duration of the GST/HST holiday?
The GST/HST holiday is effective from December 14, 2024, to February 15, 2025.
Which items are eligible for the GST/HST exemption?
Eligible items include groceries, prepared foods, children’s clothing and footwear, diapers, car seats, Christmas trees, printed books, newspapers, children’s toys, and video game consoles and accessories.
How will the tax exemption be applied at the point of sale?
Businesses are required to remove the GST/HST on qualifying goods at checkout during the specified period.
