Toronto/CMEDIA: Canada’s Liberal government’s reportedly two-month Goods and services tax (GST) break on certain products comes into effect today.
This 5 percent GST holiday, says the federal government, intended to provide some relief for taxpayers over the festive period is scheduled to last until Feb 15, 2025.
The legislation implementing the tax break, Bill C-78 passed its third and final vote in the Senate and received royal assent on Thursday.
In order for an item to be sold tax-free between Dec14, 2024 and Feb 15, 2025, it must be paid for in full and delivered by the end of the tax break period.
Items will reportedly be considered delivered once they are transferred from a supplier to a shipping service, or when they are put in the mail, rather than when they arrive at their destination.
Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island have merged their provincial sales tax with the GST to create an harmonized sales tax (HST) will see a complete exemption from the HST.
Shoppers do not need to do anything to get the tax break, says the federal government, as the GST or HST should simply not be charged at the time of purchase.
As part of a series of measures meant to alleviate cost-of-living pressures, Canada’s Prime Minister Justin Trudeau announced last month about the federal government’s plan of pausing the GST on a wide range of products from Dec. 14 to Feb. 15.
Trudeau added that the government will also send $250 cheques to the 18.7 million people in Canada who worked in 2023 and earned $150,000 or less.
If people believe they have been charged GST/HST on an exempted product, they should apply for a refund from the supplier or retailer.as explained in a government website.
The whole supply chain is being included in the tax holidays implying that the goods supplied to a wholesaler by a manufacturer, wholesaler or retailer will also not be taxed.
The list of items exempt from the tax break is as follows:
Food and groceries
Prepared foods such as sandwiches, salads, platters and pre-made meals;
Snacks including chips, candy, baked goods, fruit-based snacks and granola bars.
Energy bars, but only if they are considered to be food by Health Canada are not enhanced by protein, caffeine, vitamins and/or minerals and meet other qualifications.
Gift baskets, as long as at least 90 percent of the contents are qualifying food or beverage items.
Prepared meals and beverages, including delivery, but only when the food establishment delivers the meal.
Prepared meals delivered by a third party (the delivery cost is not tax-exempt).
Beverages
All non-alcoholic drinks, such as coffee, tea, carbonated drinks, juices and smoothies, provided they aren’t sold through a vending machine.
Alcoholic beverages such as beer, wine, cider and sake, so long as the alcohol volume is 22.9 percent or less.
Spirit mixed coolers and premixed alcoholic beverages with an alcohol volume of seven per cent or less.
Energy and protein shakes, provided they aren’t enhanced with protein, caffeine, vitamins and/or minerals, and provided Health Canada considers them to be a food or beverage.
Restaurant meals and drinks
Meals purchased at pubs, bars, food trucks or other places serving food and beverages.
Mixed drinks served in restaurants and bars if they are qualifying beverages — sparkling wine and orange juice qualify, but a vodka and soda does not.
Tips paid on meals and drinks, but only if they are included in the bill.
Catering services that provide qualifying food and beverages.
Children’s clothing and accessories
Infant and children’s clothes, including accessories such as bibs, blankets, hats, belts, suspenders, gloves and mittens.
Footwear with an insole length of 24.25 cm or less.
Some sports clothing, such as jerseys, ski jackets, leotards, unitards and bodysuits that can be worn outside of sports or dance activities.
Diapers, both cloth and disposable, training pants or rubber pants designed to be used with diapers.
Children’s car seats, provided they meet Canadian safety standards and are not part of a stroller/carrier travel system.
Specialized items of clothing — including wetsuits, soccer cleats, bowling shoes, skates, ski boots and tap shoes — do not qualify.
Children’s toys and video games
Board games and card games, including playing cards and Pokémon cards.
Toys that involve building, creating or assembling structures.
Dolls, plush toys and soft toys and their accessories.
Toys marketed for children below 14 years of age.
Jigsaw puzzles for all ages.
Video game consoles and video games for consoles qualify, but downloadable or online-only games do not.
Collectibles — including hockey cards, dolls or other toys marketed to adults — do not qualify.
Books, magazines and newspapers
Most published books, including guide books and audio books.
Bound or unbound printed versions of scripture associated with any religion.
Magazines and periodicals bought with a subscription which have no more than five per cent of their printed space devoted to advertising.
Newspapers that contain news stories, editorials, features, or other information of interest to the general public and are published daily, weekly or monthly.
E-books and downloadable audio books do not qualify. Neither do books to write in, such as diaries, notebooks and agendas, and electronic and digital publications.
A detailed list of eligible products can also be found on the Government of Canada website at https://www.canada.ca/fr/services/impots/prestations-pour-enfants-et-familles/conge-tps-tvh-fetes.html.
