GST Tax Break: List of All Products on GST Holiday Starting From December 14, 2024
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Temporary Tax Break – GST Holiday in Canada
The Goods and Services Tax (GST) in Canada will be temporarily suspended by the federal government from December 14, 2024, to February 15, 2025. This GST holiday will be available to all Canadians, but only on specific items.
This tax measure will allow consumers to purchase necessary items or small treats without having to pay taxes, such as the GST/HST.
List of All Items Without GST Between December 14, 2024 and February 15, 2025
Here is a detailed list of the types of expenses that will benefit from the two month federal tax holiday.
Groceries
The vast majority of food and beverages are already tax-free at the grocery store, such as vegetables, fruits, and meat. However, prepared foods (like a shrimp ring or the BBQ rotisserie chicken you find under a heat lamp at the grocery store) are taxable. Between December 14, 2024 and February 15, 2025, they will not be:
- Alcoholic beverages, such as wine, beer, cider, and spirit-based coolers with an alcohol content of up to 7% (excluding spirits);
- Soft drinks, fruit juice drinks, and non-carbonated fruit-flavored drinks and products that produce one of these drinks when added to water;
- Candies, confectioneries that can be classified as candies and all products sold as candies (e.g., cotton candy, chewing gum, and chocolate), fruits, seeds, nuts, and popcorn coated or treated with candy, chocolate, honey, molasses, sugar, syrup, or artificial sweeteners;
- Chips, spirals, and sticks (such as potato and corn chips, cheese sticks, potato sticks or julienne potatoes, bacon chips, and cheese spirals), popcorn, crispy pretzels, and salted seeds or nuts;
- Granola products and snack mixes containing cereals, nuts, seeds, dried fruits, or other edible ingredients;
- Popsicles (popsicles), juice bars, flavored ice waters, ice cream, frozen milk, sorbet, frozen yogurt, frozen dessert (pudding), including non-dairy substitutes;
- Fruit rolls, bars, and tablets and other similar fruit-based snacks;
- Cakes, muffins, pies, pastries, tarts, cookies, donuts, croissants with sweet filling (note that most bakery products such as bagels, English muffins, croissants, and rolls are already tax-free);
- Creamy desserts (pudding), including flavored gelatin, mousse, flavored whipped dessert, and any other product similar to pudding;
- Prepared salads, sandwiches, cheese platters, deli meats, fruits or vegetables, and other prepared food arrangements;
- Foods or beverages that need to be heated before being eaten;
- Beverages served at the point of sale;
- Foods and beverages sold by a caterer;
- Bottled or unbottled water.
In recent months, rising grocery prices have hurt our budgets. At the same time, this temporary GST holiday on certain items, combined with supermarket loyalty programs and a more profitable payment method, can be a way to soften the blow.
The Scene+ program is increasingly popular at IGA and gives you points to reduce your grocery bill. Meanwhile, the much-loved National Bank World Elite Mastercard which gives 5 points per dollar at the grocery store and is accepted at Costco. Its points allow you to pay for a trip, invest in your RRSP or TFSA, and buy gift cards.
Toys for Children and Older Kids
- Some children’s toys: The following products, designed to be used by children under the age of 14 for educational or recreational purposes:
- Board games or card games (such as a strategy game, playing cards, memory or matching games played with cards);
- Games that mimic the appearance of another item (dollhouse, small car or truck, farm game or figurine);
- Dolls or soft toys (stuffed animals and teddy bears);
- Construction games (with blocks, like Lego, assembly game, or modeling clay).
Puzzles for all ages.
Toys R Us allows you to buy your toy right away and claim the GST amount after December 14, 2024. Keep the receipt carefully to get the refund in-store.
Restaurants
All food or beverages sold in an establishment to be consumed in the dining room of the establishment, for takeout, or for delivery such as:
- Restaurants, bars, cafes
- Takeout counters, food trucks, snack bars, and food sales counters.
While saving 5% on your restaurant bill, take the opportunity to pay with a credit card that offers another chance to get 5% cashback on your meal. Don’t leave your points on the table, use one of these credit cards:
- American Express Cobalt® Card: 5 reward points per dollar (5% return or more depending on usage)
- Scotiabank Gold American Express® Card: 5 Scene+ points per dollar (5% cashback)
- MBNA Rewards World Elite® Mastercard®: 5 points per dollar (5% return)
- National Bank World Elite Mastercard: 5 NBC points per dollar (approximately 5% cashback)
Then, use these points to reduce your credit card balance, get gift cards, or treat yourself to less expensive vacations. However, make sure to pay off your credit card in full each month, otherwise, the savings will disappear from your wallet.
Children’s Clothing
- Clothing such as costumes, children’s diapers, and children’s shoes:
- Clothing designed for babies, such as a bib, a swaddle, or small blankets;
- Children’s clothing up to size 16 for girls or size 20 for boys, or clothing for girls or boys in sizes ‘extra small’, ‘small’, ‘medium’, or ‘large’;
- Footwear or socks, hats, ties, scarves, belts, suspenders, mittens, and gloves designed for children or babies.
Children’s shoes: Shoes designed for babies or children with an insole measuring 24.25 cm or less.
Books and Newspapers
- Printed newspapers: Newspapers printed on paper that contain news, editorials, specialized articles, and other information of general interest to the public and are published periodically. Excluded are electronic or digital publications, flyers, magazines, consumer guides, inserts, and periodicals.
- Printed books: Printed books on paper, sound recordings that are at least 90% of an oral reading of a printed book, and printed versions, bound or not, and Scriptures of a religion. The following items are excluded:
- Magazines and periodicals purchased individually (not by subscription) and those with more than 5% of printed space dedicated to advertising;
- Brochures and leaflets;
- Product catalogs, price lists, and advertising material;
- Warranty and maintenance booklets and user guides;
- Books primarily used for writing;
- Colouring books and drawing books, or items such as cutouts, illustrations, coins, stamps, or stickers.
- Books to cut out or with detachable parts;
- Event or show programs;
- Agendas, calendars, course programs, and schedules;
- Directories, collections of graphics, and collections of street plans or road maps (except guides or atlases consisting wholly or partly of maps other than street plans or road maps);
- Tariffs;
- Collections of blueprints, patterns, or stencils.
Christmas Trees
- Natural or artificial Christmas trees.
It will start on December 14, 2024, and end on February 15, 2025, inclusively.
Purchases in restaurants, delivery and takeout orders, taxable grocery products, printed books, and children’s clothing will have no GST from December 14, 2024, to February 15, 2025.
