Major Temporary Sales Tax Relief Announced: Key Details for Retailers

Last week, the federal government announced a two-month sales tax relief program starting mid-December. From December 14, 2024, to February 15, 2025, GST/HST will be removed on a range of goods, including groceries, restaurant meals, soft drinks, alcohol (excluding spirits), books, children’s clothing, footwear, and many toys. (See RCC’s Member Notice)

Exempt Goods
The tax exemption applies to numerous items, particularly those for immediate, seasonal, or near-term use. For the full list, see the government’s’ web page. 

Retailer Requirements
Retailers must remove GST/HST on qualifying goods at checkout starting December 14, 2024. This requires updates to point-of-sale systems and other processes to ensure proper zero-rating for the two-month period.

Political Process
Parliament must approve the measure, with the New Democratic Party indicating support to ensure its passage. The federal government is consulting with non-HST provinces (BC, SK, MB, QC) to encourage matching provincial tax relief, similar to that in Ontario and the Atlantic provinces. RCC will keep members updated on any developments before implementation day.

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