The federal government of Canada has introduced a temporary GST/HST tax relief to help Canadians manage rising household costs during the holiday season. From December 14, 2023, to February 15, 2024, the GST (5%) or the full HST (in applicable provinces) will be waived on specific items.

Eligible Items for GST/HST Relief

• Prepared foods: Includes vegetable trays, pre-made meals, sandwiches, and restaurant meals (dine-in, takeout, or delivery).
• Snacks: Chips, candy, granola bars.
• Low-alcohol drinks: Beer, wine, cider, and pre-mixed beverages under 7% ABV.
• Children’s items: Clothing, footwear, car seats, diapers, and select toys like board games, dolls, and puzzles.
• Other items: Some books, newspapers, and Christmas trees.

Exclusions

• Food and beverages from vending machines, edible cannabis, and dietary supplements.
• Magazines, adult clothing, sports-specific apparel (e.g., wetsuits, soccer cleats), and costumes.
• Non-children’s toys and collectibles (e.g., adult Lego sets, train sets, hockey cards).
• Delivery platform service fees (though restaurant-direct delivery may qualify).
• Mixed drinks containing spirits (e.g., vodka soda) or liqueurs.

How It Works

• The tax break is applied automatically at checkout for qualifying items.
• For deliveries, the item must be purchased and delivered between Dec. 14 and Feb. 15.
• Imported goods also qualify if they meet the criteria.
• Some retailers may refund GST/HST on items bought before Dec. 14 as a goodwill gesture, but this is not mandatory.

Additional Notes

• Tips included as mandatory service charges qualify for relief, but voluntary tips do not.
• Certain retailers, like Toys “R” Us, are advertising tax refunds for pre-period purchases.
• Items like mimosas (sparkling wine and juice) qualify, but drinks with spirits do not.

This initiative is aimed at alleviating the high cost of living for Canadians during the holiday season.