Tax Break 2024

• Children’s clothing and footwear: Garments designed for babies and children up to specific sizes.
• Children’s diapers: Products such as diapers, inserts, liners, training pants, and rubber pants.
• Children’s car seats: Restraint systems or booster seats meeting Canadian safety standards.
• Children’s toys: Items like board games, dolls, plush toys, and construction toys intended for children under 14.
• Jigsaw puzzles: Puzzles suitable for all ages.
• Video game consoles and accessories: Consoles, controllers, and physical game media.
• Printed books and newspapers: Physical books and newspapers containing news and editorials.
• Christmas trees: Both natural and artificial trees.
• Food and beverages: Items for human consumption, including certain alcoholic beverages with less than 7% alcohol by volume.

Detailed list available here.

Businesses that sell qualifying goods are expected to adjust their point-of-sale systems to remove GST/HST charges on qualifying goods during the relief period. This requires updating tax settings to ensure compliance and accurate pricing for consumers.

No, businesses must continue collecting applicable taxes until the relief period starts on December 14, 2024.

However, it is advisable to prepare in advance to implement changes promptly when the period begins and revert them after it ends on February 15, 2025, to avoid errors.

For the tax relief to apply, both payment and delivery of the qualifying item must occur within the relief period. If a deposit was made before December 14, 2024, the item qualifies only if the remaining amount is paid, and the item is delivered between December 14, 2024 and February 15, 2025.

Yes, online purchases of qualifying goods are eligible, provided the items are paid for in full and delivered within the relief period. The timing of delivery is crucial to determine eligibility.

The GST relief applies nationwide. In provinces where HST is applicable (Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island), the relief extends to both the federal and provincial portions of the tax.

Businesses should review their product offerings, update their point-of-sale systems, and train staff to ensure compliance during the relief period.

For more detailed information, please refer to the official announcement by the Department of Finance Canada.