Tax Changes 2024 - CRA HST / GST Tax Break

The Canadian Revenue Agency (CRA) has announced that beginning December 14 2024 thru to February 15, 2025 businesses and consumers will not be required to collect nor pay HST on certain qualifying items. What items are included ? What do you need to do as a consumer to receive this tax break ? Are businesses still required to collect HST at time of purchase? How does this effect my HST return?

What is HST / GST HST / GST the tax that everyone, business and individuals alike, pay on purchase of goods and services in Canada. The HST / GST rate varies by province. See HST rates by province below:

Province	GST / HST Rate
Alberta	5%
British Columbia	5%
Manitoba	5%
New Brunswick	15%
Newfoundland and Labrador	15%
Northwest Territories	5%
Nova Scotia	15%
Nunavut	5%
Ontario	13%
Quebec	5%
Prince Edward Island	15%
Saskatchewan	5%
Yukon	5%

How does the HST / GST tax break effect Canadians Consumers will experience tax relief on certain purchases made until February 15, 2025. Items that will not be taxed include children's products, restaurants and bars, food and beverage including groceries, as well as Christmas related items. As a consumer there is no action you need to take in order to receive the tax break. Tax should not be charged by businesses on qualifying items. Tax break will be taken at time of purchase. See list of qualifying items below.

How does the HST / GST tax break effect businesses? Businesses will be effected as both a purchaser and a seller. As a purchaser, you will experience the tax break just as consumers, tax will not be charged on eligible goods and services. As a seller, you will be expected not to charge tax on eligible items sold to consumers. You will still be expected to file your HST return as normal. HST collected as well as ITCs should be reported as paid and collected during tax break period (See HST and your business for further information).

What this all means is that Canadians will receive a much needed tax break this season while making holiday purchases!

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