Tax Break for All Canadians

The Tax Break for All Canadians Act, introduces a temporary GST/HST break for certain goods and services in Canada. This break will be in effect from December 14, 2024, to February 15, 2025. Here’s a breakdown of key details:

Types of Qualifying Items:

GST/HST will not be charged on certain items if they meet the following conditions:

1. Food – Including groceries, with some specific exclusions.
2. Beverages – Drinks like juices, milk, etc., subject to details.
3. Restaurants, Catering, and Other Food or Drink Establishments – Applies to dining out and catering services.
4. Children’s Clothing and Footwear – Items specifically for children.
5. Children’s Diapers – Diapers for infants and toddlers.
6. Children’s Car Seats – Safety seats for children.
7. Children’s Toys – Toys designed for children.
8. Jigsaw Puzzles – All ages qualify.
9. Video Game Consoles, Controllers, and Physical Video Games – Specifically for children’s video game consoles and games.
10. Printed Books – Physical books qualify.
11. Printed Newspapers – Physical newspapers qualify.
12. Christmas and Similar Decorative Trees – Holiday trees and similar decorations.

Requirements for Eligibility:

• Paid in full between December 14, 2024, and February 15, 2025.
• Delivered or made available to the buyer within this period.

Imported goods also qualify for the break if they meet the above criteria.

For Shoppers:

• Automatic application: Shoppers should not be charged GST/HST on qualifying items.
• Receipts: You generally do not need to keep receipts unless you’re incorrectly charged GST/HST, in which case you can request a refund from the retailer.

For Businesses:

• Do not charge GST/HST on qualifying goods and services during the specified period.
• Keep records: Ensure regular reporting and remittance of GST/HST as usual, but exclude GST/HST on the qualifying items.
• If you mistakenly charge GST/HST, refund the amount to customers.

The government encourages businesses to make reasonable efforts to comply with the legislation. There will be a focus on situations where businesses willfully refuse to comply with these rules.

For more details or to ask technical questions, businesses can contact the Canada Revenue Agency (CRA).