This tax holiday, which is scheduled to apply from December 14, 2024 to February 15, 2025, will affect retailers, restaurants, grocers, online marketplaces and food delivery businesses, among others, that sell qualifying goods, including specified children’s clothes and toys, alcoholic beverages and prepared meals. This proposed GST/HST holiday is in addition to another proposed measure that will provide a Working Canadians Rebate of $250 to Canadian individuals who worked in 2023 and made less than $150,000.
Note that this tax holiday has not yet been legislated or enacted, and the government has not released legislative proposals that would provide details on how it intends to administer this temporary relief. However, in light of all the related restrictions and conditions, affected businesses will have to carefully determine if their supplies are subject to the GST/HST tax holiday. In addition, affected businesses should prepare to act quickly to update their systems to accommodate this proposed change, and stay alert for any forthcoming details on how they are required to implement this change.
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