This Saturday marks the start of the Liberal government's two-month GST/HST holiday that it says will give Canadians a break on the cost of some essential goods.
To be sold tax-free between December 14, 2024 and February 15, 2025, it must be paid in full or delivered by the end of the tax break period.
The federal government says that items are considered delivered when they are transferred from the supplier to the shipping service, or placed in the mail when they arrive at their destination.
Shoppers don't have to do anything to get the tax rebate; There is no claim process. GST or HST will only be charged at the time of purchase.
Tax exemption is happening throughout the supply chain, so the goods supplied by the manufacturer, wholesaler or retailer to the wholesaler will not be taxed.
Purchases in provinces that have merged their provincial sales tax into the GST to create a proportional sales tax (HST) will eliminate the entire harmonized tax.
Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island have consolidated sales taxes.
The Parliamentary Budget Officer says the tax break will cost the federal government $1.46 billion, and the HST will cost the provinces $1.26 billion — but all of that could end up on the federal government's books if the provinces decide not to waive the federal government's compensation. measurement.
The list of items exempted from tax exemption is long. Christmas trees are eligible but Christmas decorations are not. Imported goods are also exempt from the GST/HST that they carry List of items eligible for tax exemption
Here is the list of items that get tax exemption:
Food and groceries
- Prepared foods such as sandwiches, salads, platters and pre-made meals.
- Snacks including chips, candy, baked goods, fruit-based snacks and granola bars.
- Energy bars, but only if they are considered a food by Health Canada, are not enhanced with protein, caffeine, vitamins and/or minerals.
- Gift baskets, as long as at least 90 percent of the contents are qualifying food or beverages.
- Food and beverages, including delivery, but only when the food establishment delivers the food.
- Food prepared by a third party (delivery costs are not tax-exempt).
beverages
- All non-alcoholic beverages such as coffee, tea, carbonated drinks, juices and smoothies, if they are not sold through a vending machine.
- Alcoholic beverages such as beer, wine, cider, and sake if the alcohol content is 22.9 percent or less.
- Spirit mixed coolers and premix alcoholic beverages with an alcohol content of seven percent or less.
- Energy and protein shakes, if they are not enhanced with protein, caffeine, vitamins and/or minerals, and are considered food or beverage by Health Canada.
Restaurants and Beverages
- Food purchased at pubs, bars, food trucks or other places that serve food and drinks.
- Mixed drinks are served at restaurants and bars if they are eligible beverages—sparkling wine and orange juice are eligible, but vodka and soda are not.
- Paid tips on food and drinks, but only if they are included Bill.
- Catering services providing qualified food and beverages.
Children's clothing and accessories
- Infant and children's clothing, including accessories such as bibs, blankets, hats, belts, suspenders, gloves and mittens.
- Shoes with an insole length of 24.25 cm or less.
- Some sports clothing, such as jerseys, ski jackets, leotards, unitards and bodysuits that can be worn outside of sports or dance activities.
- diaper, Both cloth and disposable, training pants or rubber pants designed to be used with diapers.
- Children's car seats, if they meet Canadian safety standards and are not part of a stroller/carrier travel system.
Specific items of clothing – wetsuits, soccer cleats, bowling shoes, skates, ski boots and tap shoes – do not qualify.
Children's toys and video games
- Board games and card games, including cards and Pokemon cards.
- Toys that involve building, creating or assembling structures.
- Dolls, plush toys and soft toys and their accessories.
- Market toys for children under 14 years of age.
- Jigsaw puzzles for all ages.
- Video game consoles and video games for consoles are eligible, but downloadable or online-only games are not.
Collectibles — hockey cards, dolls or other toys marketed to adults — don't qualify.
Books, magazines and newspapers
- Many published books including guide books and audio books.
- Bound or unbound printed editions of scriptures relating to any religion.
- Magazines and periodicals purchased by subscription in which no more than five percent of their printed space is devoted to advertising.
- Newspapers that contain news, editorials, features, or other information of interest to the general public and are published daily, weekly, or monthly.
E-books and downloadable audio books are not eligible. Nor books for writing, such as diaries, notebooks and agendas, and electronic and digital publications.
Source link
