GST/HST Holiday Relief on Essentials Announced for Canadians

Canadians are set to receive some welcome financial relief this holiday season, thanks to a temporary Goods and Services Tax/Harmonized Sales Tax (GST/HST) exemption. The federal government announced that from December 14, 2024, to February 15, 2025, GST/HST will not apply to a range of essential goods.

What’s Covered?

The tax break includes a variety of items aimed at easing holiday expenses, such as:

• Groceries and certain beverages

• Restaurant meals, snacks, and drinks

• Children’s clothing, footwear, diapers, and car seats

• Christmas trees (both natural and artificial)

• Printed books and newspapers

• Select children’s toys, puzzles, and video game consoles

Who Benefits?

Both consumers and businesses stand to gain. Families will find savings on everyday essentials, while retailers can use this opportunity to boost holiday sales.

What Retailers Need to Know

Businesses must update their point-of-sale systems to exclude GST/HST for eligible items during the relief period. Clear communication with customers and accurate record-keeping are essential to ensure compliance and a smooth shopping experience.

Provincial and Import Implications

The tax exemption also applies to the provincial portion of HST in participating provinces, such as Ontario and the Atlantic provinces, as well as to the importation of qualifying goods.

This temporary measure offers meaningful financial support for Canadians during a high-spending period and is expected to provide a boost to both consumer confidence and the retail sector.