November 21, 2024•1 Minute

GST/HST Holiday and Rebate for Canadian Workers

The Canadian government announced on November 21, 2024, that it will introduce a bill to implement the following two measures:

GST/HST HOLIDAY
In short, the GST/HST would be completely eliminated on the following products delivered and paid for (or imported) during the period from December 14, 2024, to February 15, 2025:

  • Children’s clothing
  • Children’s footwear
  • Diapers
  • Car seats
  • Printed newspapers
  • Printed books
  • Christmas trees
  • Food and beverages, including restaurant meals and prepared foods
  • Certain children’s toys
  • Puzzles
  • Video game consoles, controllers, or physical game media

 

It will be the responsibility of suppliers (businesses) to remove the GST/HST at checkout when making the sale.

Note that certain exceptions or clarifications may apply. We encourage you to consult the information document from the Department of Finance Canada:
https://www.canada.ca/en/department-finance/news/2024/11/more-money-in-your-pocket–a-tax-holiday-for-all-canadians.html

REBATE FOR CANADIAN WORKERS
The new rebate would be a tax-free amount of $250 and would be automatically paid out in early spring 2025 to all individuals who worked in 2023, had a net personal income of less than $150,000, and meet the requirements outlined below:

  • Filed their 2023 income tax return no later than December 31, 2024, and either claimed the tax credit for contributions to the CPP or QPP on employment or self-employment income, or claimed the tax credit for contributions to EI or QPIP on employment or self-employment income, or reported income from EI or QPIP benefits;
  • Are a resident of Canada as of March 31, 2025;
  • Are not serving a prison sentence of 90 days or more immediately before April 1, 2025;
  • Are not deceased as of April 1, 2025.

 

Source: https://www.canada.ca/en/department-finance/news/2024/11/more-money-in-your-pocket–the-rebate-for-canadian-workers.html

For more information on these measures, we invite you to contact your FBL representative.

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