On December 14, 2024, Canadians received encouraging news as they welcomed the new year: a temporary GST/HST tax relief lasting until February 14, 2025. The relief came just in time for the winter shopping season. 

During this two-month period, Canadians will not be charged GST/HST on certain everyday essentials such as: 

  • Groceries: Everyday necessities like fresh produce, dairy, and more. 
  • Snacks: Perfect for the holiday gatherings or quick bites. 
  • Children’s Clothing: Winter essentials for kids without the added tax burden. 
  • Gifts: Holiday presents, making gift-giving more affordable this year. 

The complete list of the items can be found here. 

Canadians Enjoy Tax Free Shopping 2025

The GST/HST holiday applies automatically to purchases made between December 14, 2024, and February 15, 2025. Here are the key conditions: 

1. Eligible Items Only: Not all purchases are tax-free. The exemption applies specifically to the categories outlined above. Items like luxury goods, alcohol, and tobacco products are excluded. 

2. Purchase Location: The exemption is valid at both brick-and-mortar stores and online retailers registered for GST/HST in Canada. 

3. Retailer Compliance: Retailers are responsible for removing the tax at the point of sale. Ensure the items on your receipt reflect the tax exemption correctly. 

4. Receipt Retention: Keep your receipts to ensure accurate application of the holiday and for financial record-keeping purposes. 

This tax break is expected to save Canadians hundreds of dollars in holiday shopping. Over the two-month period, the combined savings could make a notable difference for many families. 

Here are some tips on how you can make the most of this tax break: 

    1. Prepare a list of essential items to purchase during this period. 
    2. Stock up on winter wear for children. 
    3. Support small businesses and shop local 

At Legend Fusions, we’re here to keep you informed about critical financial updates. Contact us for personalized advice to make the most of these incentives and stay ahead this tax season. 

Jeffery

Jeffrey Ross

Jeffrey Ross is an experienced tax accountant focused on US-Canada cross-border taxation, with over three years in the industry, including a key role as client manager at a Canadian tax firm. He provides expertise in corporate and personal tax planning, specializing in non-resident tax, capital gains, CRA and IRS compliance, and retirement planning. Known for his personalized approach, Jeffrey is dedicated to guiding clients with clear, practical advice tailored to complex tax scenarios, aligned with the evolving tax laws.

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