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Shoppers will get an early Christmas present after Thursday’s passage of Bill C-78 that waives the application of the GST/HST on many goods beginning Saturday.
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The GST holiday will last until February 15, 2025.
In provinces that have harmonized their provincial sales tax with the federal GST, the entire tax will be removed at the time of purchase. The provinces that have harmonized their taxes (HST) are Ontario, Newfoundland, Prince Edward Island, Nova Scotia and New Brunswick.
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In order for an item to be eligible to be tax-free, it must be paid in full between Dec. 14 and Feb. 15 and the purchase must be delivered within that time period.
The federal government considers the item delivered once the package is transferred from the supplier to a shipping service or when it’s put in the mail. The package doesn’t have to reach its destination by Feb. 15.
While many grocery items are already exempt from the GST, that list will be expanded. The tax-break will also be applied to restaurant meals, newspapers, books, children’s products, Christmas trees and some holiday items among other things.
However, not everything is eligible for the tax holiday creating some confusion for both consumers and retailers.
For example, while Christmas trees are eligible, not all holiday decorations are exempt. Printed books get a pass from the taxman while e-books will still be taxed.
Some imported goods also qualify for the tax break.
It’s left retailers scrambling the past couple weeks to update their computerized pay systems to accommodate the tax changes.
A complete list of tax-exempt items during the GST holiday can be found at: https://www.canada.ca/en/services/taxes/child-and-family-benefits/gst-hst-holiday-tax-break.html.
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