Canada GST/HST Relief Tax Break for 2025 [ Save More This Year ]
The Canada Revenue Agency has announced a GST/HST Tax relief on specific items from December 14, 2024, to February 15, 2025. During these dates, there will be a GST and HST tax break. GST/HST in Canada is a sales tax collected by the federal government and shared with the provinces, separate from FPT payments. Below is detailed information about GST/GST tax break items, how to apply, and other important details.
GST/HST Tax Relief Items
The GST/HST has been paused for two months on these specific items. The table also details the items not included in the tax relief.
Category | Qualifying Items | Non-Qualifying Items |
|---|---|---|
Food | – Prepared foods (e.g., sandwiches, salads). | Vending machine food, dietary supplements, cannabis food products. |
– Snacks (e.g., chips, candy, baked goods). | Gift baskets with <90% tax-free items. | |
– Energy/protein bars meeting Health Canada criteria. | ||
Beverages | – Non-alcoholic drinks (e.g., coffee, tea, juices). | Vending machine beverages, cannabis beverages |
– Eligible alcoholic drinks (beer, wine ≤22.9% ABV). | Spirits/liqueurs, alcoholic drinks >7% ABV (except wine/cider/sake) | |
– Energy/protein drinks meeting Health Canada criteria. | ||
Children’s Clothing & Footwear | – Baby clothes (e.g., bibs), children’s clothes (sizes XS-L), footwear ≤24.25 cm. | Sports-specific clothing/footwear (e.g., cleats), adult clothing, costumes/jewelry |
Restaurants & Catering | – Prepared meals, and non-alcoholic/eligible alcoholic beverages. | Delivery fees from third-party platforms, cocktails with spirits/liqueurs. |
– Catering services including food preparation. | ||
Children’s Diapers | – Cloth/disposable diapers, inserts/liners, training pants. | Diapers provided by diaper services. |
Children’s Car Seats | – Car seats meeting Canadian safety standards. | Car seats not meeting standards or travel systems combining strollers and car seats. |
Children’s Toys | – Board/card games, building toys, dolls/plush toys for children under 14. | Collectibles not meant for play (e.g., hockey cards). |
Jigsaw Puzzles | New or used puzzles for all ages. | None |
Video Games & Consoles | – Game consoles/controllers, physical video games. | Downloadable/online-only games, gaming accessories like chairs/headsets |
Physical Books | – Printed books (hardcover/softcover), religious scriptures. | E-books, downloadable audio books, books for writing on (e.g., diaries), calendars |
Printed Newspapers | – Regularly published newspapers with news/editorials (daily/weekly/monthly). | Digital publications, flyers, inserts, magazines, shoppers |
Christmas Trees & Decorations | – Natural/artificial Christmas trees, Hanukkah trees/bushes. | Tree decorations (e.g., ornaments), poinsettias, mistletoe, wreaths. |
On the qualifying items, there will be a GST and HST tax pause if,
- They are fully paid for between December 14, 2024, and February 15, 2025 (partial payments may not qualify).
- They are delivered or made available to the buyer within the same period.
This tax relief applies to all stages of the supply chain, from manufacturers to wholesalers, retailers, and consumers.
How to Apply for the Holiday Tax Break
There is no need to apply for this holiday tax break. You will automatically get a Tax pause on qualified items you purchase between December 14, 2024, to February 15, 2025.
For Example:
Here is a practical example that would help you to understand how this Canada GST and HST tax break works.
A bakery supplies a batch of pre-made sandwiches to a café on January 10, 2025, and does not charge tax. There is no GST/HST payable because pre-made sandwiches are qualifying items.
The café then sells the sandwiches to customers on January 12, 2025, without charging tax. No GST/HST is charged, collected, or paid.
- Supplier/Bakery
Sells qualifying pre-made sandwiches
Does not charge GST/HST - Retailer/Café
Sells qualifying pre-made sandwiches
Does not charge GST/HST - Individual Consumer
Buys qualifying pre-made sandwiches
Is not charged GST/HST
What If You Charged GST/HST In Error
If you have charged the GST and HST tax during the break, there is no need to call the Canada Revenue Agency. The CRA provides the following guidelines from this situation:
- Keep your receipt safe
- Demand a refund from the seller
If you have charged tax in the days of relief, show your receipt to the seller and demand a refund. If there are any issues with processing the refund, follow the guidelines below.
Example 1
Here is an example that helps you to understand if you are overpaid by a business:
A tech supplier sells a zero-rated laptop for students to a retailer on December 20, 2024, without charging GST/HST.
The retailer mistakenly charged GST/HST when selling the laptop to a student on December 24, 2024. The student requests a refund but doesn’t get it and then applies for a rebate using code 1C (“amounts paid in error”).
Also Read Related Article Canada GST/HST Calculator (Ontario, Alberta…) – 2025
Example 2
Here is a practical example of what if a business charges GST/HST tax to another business:
A manufacturer sells 100 child car seats to a retailer for $10,000 on December 20, 2024. But a mistake happens and the manufacturer charges $500 GST.
Since car seats are zero-rated, no tax should apply. The retailer asks for a refund, but the manufacturer says the $500 was sent to the CRA.
The retailer then applies for a $500 rebate using Form GST189 under code 1C (“amounts paid in error”).
1. Apply For GST/HST Rebate
Here are the details to apply for rebate:
- Direct deposit is available for online applications.
- GST/HST registrants can file their rebate through My Business Account or Represent a Client.
- To offset the rebate on your GST/HST return (line 111), use the “File a return” service.
- For a separate rebate, use the “File a rebate” service.
- Individuals and non-registrants can file their rebates using My Account.
- After signing in, select “More services” in the menu, then choose “File a GST/HST rebate.”
- It is important to include all proof when applying, such as receipts and delivery documents. It is recommended by CRA to add this paper to the hassle-free refund.
2. After Refund Application
The CRA will review your application and an eligibility review will be processed. This process takes longer than the usual 12 to 16 weeks.
In the whole process, there is no need to call the CRA for updates. A CRA agent will contact you and provide updates.
GST And HST Break For Business
Here are the guidelines for business for tax relief by the Canada Revenue Agency:
Also Read Related Article GST/HST Credit Income Limit 2025 [ Final Reminder ]
Zero-Rating
Zero-rated items are taxed at 0%, so no GST/HST is charged. Businesses can still claim input tax credits for expenses related to zero-rated items.
Download Poster
The CRA has released the GST and HST tax break poster. Download the GST and HST tax break poster for help. Also, hang the poster in your shop and stores and provide it electronically for the ease of your customers.
My Final Thoughts
The GST/HST tax relief is a temporary tax break on specific items from December 14, 2024, to February 15, 2025. It means that there will be no General sales tax and harmonized sales tax on these items. The CRA provides this tax break to provide financial relief.
If you have any issues related to Canada Tax Pause, feel free to contact Canada Revenue Agency (CRA).
- For personal tax inquiries, call 1-800-959-8281.
- For business tax inquiries, call 1-800-959-5525.
- For GST/HST inquiries, call 1-800-959-5525.
