Tax Tip - GST/HST break: More money in your pocket

OTTAWA, ON, Dec. 13, 2024 /CNW/ - On December 12, 2024, the legislation to enact the Goods and Services Tax/Harmonized Sales Tax (GST/HST) break was passed into law by the Government of Canada. The GST/HST break lasts from December 14, 2024, to February 15, 2025, and gives a tax break on many everyday essentials.

Types of items that qualify

The GST/HST break includes certain qualifying daily necessities as well as items that bring joy to the season, such as:

• Children's clothing and footwear
• Children's diapers
• Children's car seats
• Certain children's toys
• Jigsaw puzzles
• Video game consoles, controllers, and physical video games
• Physical books
• Printed newspapers
• Christmas and similar decorative trees
• Most food and beverages and related services

What do I need to do to get this tax break as a shopper?

Nothing at all! As a shopper, you should automatically receive this tax break on qualifying items at checkout. No GST/HST should be charged on the qualifying items when you make your purchases between December 14, 2024, and February 15, 2025.

Generally, you do not need to save your receipts, unless you're accidentally charged GST/HST on a qualifying item. If that happens, simply ask the supplier or retailer for a refund of the GST/HST.

Information for businesses

From December 14, 2024, to February 15, 2025, businesses should not charge GST/HST on qualifying goods and services. The items that qualify for the GST/HST relief during this period apply at every stage of the supply chain, from manufacturer to wholesaler, wholesaler to retailer, and retailer to consumer.

Businesses that accidentally pay the GST/HST on their zero-rated supplies or restaurants and other eating or drinking establishments looking for additional guidance can visit Canada.ca for more information.

The Canada Revenue Agency (CRA) will take a practical approach to compliance. We will dedicate our efforts towards situations in which businesses willfully and egregiously refuse to comply with the temporary measures, such as those who collect GST/HST but do not remit it to the CRA. Businesses who make reasonable efforts to comply with the legislation will not be the focus of our compliance actions.

Instant detailed information—no hassle, just a quick scan

During this period, questions may tend to pop up, and the CRA is here to help! The Agency has just published a new poster that is designed to make the GST/HST break period as easy as possible for businesses and shoppers. It features:

• a clear list of qualifying items,
• a convenient QR code, so shoppers can scan and access all the detailed information they need right at their fingertips,
• a downloadable/printable version that businesses can display in stores or share electronically, so that shoppers can get the information they need quickly and easily.

The poster is available to download on Canada.ca to be printed or shared as needed.

Individuals and businesses can visit the CRA's webpage at GST/HST break - Canada.ca to learn more about qualifying items, including details, examples, and restrictions.

Contacts: 

Media Relations
Canada Revenue Agency
613-948-8366
cra-arc.media@cra-arc.gc.ca

Stay connected

• Follow the CRA on Facebook
• Follow the CRA on X – @CanRevAgency
• Follow the CRA on LinkedIn
• Follow the CRA on Instagram
• Subscribe to a CRA electronic mailing list
• Add our RSS feeds to your feed reader
• Watch our tax-related videos on YouTube
• Listen to our Taxology podcast 

SOURCE Canada Revenue Agency