Business Insights: Canada’s GST/HST Holiday Exemption
Where the Exemption Applies
The GST exemption applies across Canada on specific goods and services. In provinces with Harmonized Sales Tax (HST), both the GST and provincial portions of the tax are removed for eligible items, maximizing savings.
Qualifying Goods
Here’s what qualifies during the GST/HST holiday:
Food and Beverages:
- Restaurant meals, including dine-in, takeout, and delivery.
- Snacks like chips, candy, and granola bars.
- Non-alcoholic beverages and pre-mixed alcoholic drinks (under 7% ABV).
Children’s Products:
- Clothing and footwear for kids.
- Car seats and diapers.
- Toys, including board games, dolls, and video game consoles.
Reading Materials:
- Books, print newspapers, and puzzles.
Seasonal Items:
- Christmas trees and decorations.
Regional Benefits
Provinces with HST (Ontario, Nova Scotia, Newfoundland and Labrador, New Brunswick, Prince Edward Island):
Both GST and the provincial portion of HST are exempted. For example, in Ontario, a $2,000 purchase of eligible goods could save up to $260.
Other Provinces and Territories:
Only the 5% federal GST will be removed for qualifying items.
How This Impacts Your Business
For businesses using BusinessVision , Sage 300, or Acumatica, the tax settings on inventory items must be updated to reflect these exemptions. This includes:
- Configuring tax-exempt categories for eligible goods.
- Ensuring the correct rates apply during the exemption period.
- Verifying tax codes are accurately assigned to inventory items in your system.
- Your tax codes must be updated to reflect the exemptions accurately. Failure to do so could result in compliance issues, disrupted operations, or incorrect reporting.
How Britec Can Help
At Britec, we understand how important it is for your business to adapt to regulatory changes. With over 30 years of experience, we are experts in BusinessVision, Sage 300, and Acumatica and can provide seamless support.
Here’s how we can help:
- Adjust your tax codes to reflect the GST/HST holiday exemptions.
- Ensure compliance with federal and provincial tax laws.
- Offer hands-on support and training for your team.
Act Now to Stay Compliant
This GST/HST holiday is time sensitive, running only from December 14, 2024, to February 15, 2025. Don’t risk falling behind—let Britec ensure your systems are updated seamlessly.
For more information on the GST/HST holiday, visit the Government of Canada page. Ready to get started? Contact Britec today and let’s make sure your systems are prepared to take full advantage of these changes!