On December 12, 2024, the Federal Government adopted legislation to remove the GST/HST on holiday essentials, such as groceries, restaurant meals, drinks, snacks, children’s clothing and gifts from December 14, 2024, until February 15, 2025. In Ontario, the provincial portion of the sales tax is also removed during this period, providing additional savings for consumers.
For this period, the following items can be purchased tax-free in Ontario:
- Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches;
- Restaurant meals, whether dine-in, takeout, or delivery;
- Snacks, including chips, candy, and granola bars;
- Beer, wine, and cider;
- Pre-mixed alcoholic beverages below 7 per cent ABV;
- Children’s clothing and footwear, car seats, and diapers;
- Children’s toys, such as board games, dolls, and video game consoles;
- Books, print newspapers, and puzzles for all ages; and,
- Christmas trees and similar decorative trees.
Not all provinces are adopting the same approach as Ontario in matching the Federal sales tax holiday, including Quebec, which has chosen not to participate.
This tax break may be met with excitement by consumers, but it is presenting challenges for many retailers during what is already their busiest time of the year. As retailers work to update their point-of-sale (POS) systems to reflect these changes, customers are encouraged to remain patient during this rapid and complex rollout.
For more information, please visit the Federal Government website: Legislation to put more money in your pocket receives Royal Assent – Canada.ca
