Winter GST Holiday

The Canadian government has unwrapped an early holiday present for consumers with the announcement of a Winter GST Holiday on November 21, 2024. This temporary tax break aims to ease financial pressures during the high-spending holiday season and into the new year.

Key Details of the GST Holiday

• Duration: December 14, 2024, to February 15, 2025

• Savings: Elimination of GST/HST on qualifying items

• Estimated Impact: $1.6 billion in federal savings for Canadians

What's Included?

The GST/HST break applies to a wide range of items, including:

• Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches.

• Restaurant meals, whether dine-in, takeout or delivery.

• Snacks, including chips, candy and granola bars.

• Beer, wine, cider and pre-mixed alcoholic beverages below 7 per cent alcohol by volume (ABV).

• Children's clothing and footwear, car seats and diapers.

• Children's toys, such as board games, dolls and video game consoles.

• Books, print newspapers and puzzles for all ages.

• Christmas trees.

  
  

With these exemptions, all food in Canada will be essentially tax-free.

Potential Savings

A family spending $2,000 on qualifying items could save $100 in GST during the holiday season. In provinces with HST, the savings could reach up to $260

Implementation

Businesses are expected to remove GST/HST on qualifying purchases at the point of sale. The tax relief will also apply to eligible goods imported during this period.

This Winter GST Holiday is part of a larger package aimed at addressing affordability issues and providing relief to Canadian families hit by rising prices.

As consumers gear up for holiday shopping, this temporary tax break offers a welcome opportunity to stretch their budgets a little further.

It's always advisable to consult with KKL CPA to ensure you're claiming as much as possible.