The Government of Canada has announced a GST holiday tax break covering Dec 14 – Feb 15 inclusive with the Province of Ontario citing it would remove the PST portion during the same period.
Items exempt include:
- Prepared foods and snacks: Vegetable trays, pre-made meals, salads, sandwiches, chips, candy, granola bars, etc.
- Dining: Restaurant meals (dine-in, takeout, or delivery).
- Beverages:
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- Beer, wine, cider, and sake.
- Pre-mixed “ready-to-drink” alcoholic beverages 7% or less ABV (alcohol by volume).
- Children’s products: Children’s clothing, footwear, car seats, diapers, and other important family items.
- Toys and entertainment: Children’s toys (board games, dolls, video game consoles, etc.) and books, print newspapers, and puzzles for all ages.
- Seasonal items: Christmas trees and other holiday items.
Canadian audit, tax, and advisory firm KPMG has published a briefing on how businesses can prepare for the tax holiday.
In addition, the Canadian Federation of Independent Business is calling on the government in institute a small business GST rebate of $1000 proactively to cover the expenses incurred and cover any errors that may inadvertently be made in implementing the tax holiday.