GST/HST Holiday Tax Break (Dec 2024 - Feb 2025): What Was Covered and How Businesses Should Close It Out
What the GST/HST holiday covered
For two months, no GST or HST was payable on certain items. In HST provinces the federal and provincial parts were both removed; in provinces with a separate PST or QST, only the GST was removed and the provincial tax rules were set by each province.
| Category | Examples |
|---|---|
| Food and drink | Restaurant meals, takeout and catering of eligible food; prepared foods such as pre-made salads and sandwiches; most snacks including chips and candy (not vending machines); beer, wine, cider and other lower-alcohol packaged beverages (spirits were not included) |
| Children's items | Children's clothing and footwear, diapers, car seats |
| Other | Toys and games for children 14 and under, jigsaw puzzles, video game consoles, discs and controllers, physical print books (not calendars, journals or colouring books), physical audio books, and natural or artificial Christmas trees |
Items generally needed to be both paid for and delivered inside the window, and exact eligibility often depended on how an item was marketed or sold. Vending-machine sales and adult-marketed collectibles were among the exclusions.
Where things stand now
- The temporary relief cannot be claimed after the fact.
- Regular rates apply: see the provincial rate table and calculator.
- The government has since made other announcements affecting households; the current federal payment is the CGEB.
Business checklist: closing out the holiday period
| Task | Why it matters |
|---|---|
| Review POS and invoice settings for Dec 14, 2024 to Feb 15, 2025 | Confirm eligible items were sold tax-free and ineligible items were taxed normally. |
| Check mixed sales (for example a gift set combining eligible and ineligible items) | Split pricing or apply the CRA's rules for combined items. |
| Confirm returns that overlapped the period were filed correctly | Errors carry into GST34 lines 103–109. |
| Correct mistakes in your next return, or request an adjustment | Underpaid tax accrues interest; overpaid tax may be recoverable. |
| Keep records for six years | The CRA can audit periods within that time. |
How to correct an error
- Work out the difference: tax that should have been charged versus tax that was.
- Include the correction on your next GST/HST return using the adjustment lines, or use the CRA's adjustment process if the period has closed.
- If the mistake is large or older, consider the Voluntary Disclosures Program before the CRA contacts you.
- Document the cause and the fix.
Lessons for the next tax change
- Have your POS supplier confirm rule changes in writing.
- Tax code items individually rather than by department.
- Test with sample transactions on day one.
Frequently asked questions
When was the GST/HST holiday?
From December 14, 2024 to February 15, 2025.
Is the GST/HST holiday still active?
No. It ended on February 15, 2025 and standard rates apply.
Did the holiday remove provincial sales tax too?
In HST provinces, yes, since HST includes the provincial part. In BC, Saskatchewan, Manitoba and Quebec only the GST was removed, and provincial taxes followed each province's decisions.
Can I claim the tax I paid during the holiday period?
If you were charged tax on an item that qualified, ask the seller for a correction. There is no general claim on your tax return.
How long should businesses keep holiday-period records?
Six years, like other GST/HST records.