A holiday shopper’s guide to the federal GST holiday

Last week, the federal government announced that it will provide a two-month pause on the Goods and Services Tax/Harmonized Sales Tax (GST/HST) for groceries and holiday essentials, like groceries, restaurant meals, drinks, snacks, children’s clothing, and gifts (providing an estimated $1.6 billion in federal tax relief). It’s a temporary measure (from Dec 14, 2024, to Feb 15, 2025) but the feds are hoping the tax break will make a difference when making purchases over the holidays.

For example, a family spending $2,000 on qualifying goods, such as children’s clothing, toys, diapers, books, snacks for the house, or restaurant meals would pay about $100 less GST over the two-month period. In Ontario, where HST would also be removed, a $2,000 basket of qualifying purchases would equal about $260 in HST savings over the two-month period.

Businesses are expected to remove the GST/HST on qualifying goods at checkout as of Dec 14 (although that has led to some complaints from small business owners).

Here’s a list of what would be covered by the federal tax relief:

Children’s clothing

This includes:

• Garments designed for babies, including baby bibs, bunting blankets, and receiving blankets.
• Children’s garments up to size 16 (girls) or size 20 (boys), according to the national standard applicable to the garments; if no national standard applies to the children’s garments, applicable clothing would include sizes extra small, small, medium, or large (for both girls and boys).
• Hosiery or stretchy socks, hats, ties, scarves, belts, suspenders, or mittens and gloves in sizes and styles designed for children or babies.

This doesn’t include garments used exclusively in sports or recreational activities, costumes, children’s diapers, or children’s footwear.

Children’s footwear

• This includes footwear designed for babies or children with an insole length of 24.25 centimetres or less. This doesn’t include stockings, socks, or footwear used exclusively in sports or recreational activities.

Children’s diapers

• This includes diapers for babies or children, diaper inserts or liners, training pants, or rubber pants designed for use with any of these items.

Children’s car seats

• This includes a restraint system or booster seat that conforms to the Canada Motor Vehicle Safety Standards.

Print newspapers

• This includes print newspapers containing news, editorials, feature stories, or other information of interest to the general public published at regular intervals. This doesn’t include electronic or digital publications, most fliers, inserts, magazines, periodicals, and shoppers.

Printed books

This includes printed books or updates of books, audio recordings where 90% or more is a spoken reading of a printed book, or a bound or unbound printed version of scripture of any religion.

This doesn’t include:

• Magazines or periodicals purchased individually not through a subscription.
• A magazine or periodical where the printed space devoted to advertising is more than 5% of the total printed space.
• A brochure or pamphlet.
• A sales catalogue, a price list, or advertising material.
• A warranty booklet or an owner’s manual.
• A book designed primarily for writing on.
• A colouring book or a book designed primarily for drawing on or for affixing or inserting items such as clippings, pictures, coins, stamps, or stickers.
• A cut-out book or a press-out book.
• A program relating to an event or performance.
• An agenda, calendar, syllabus, or timetable.
• A directory, an assemblage of charts, or an assemblage of street or road maps (other than a guidebook or an atlas that consists in whole or in part of maps other than street or road maps).
• A rate book.
• An assemblage of blueprints, patterns, or stencils.

Christmas trees or similar decorative trees

• Includes both natural and artificial trees.

GST exempt Food or beverages

This includes:

• Alcoholic beverages (excluding spirits but including wine, beer, ciders, and spirit coolers up to 7% ABV).
• Carbonated beverages, non-carbonated fruit juice, or fruit-flavoured beverages or products that, when added to water, produce one of these beverages.
• Confectionery classed as candy or goods sold as candies (e.g., candy floss, chewing gum, and chocolate).
• Fruits, seeds, nuts, or popcorn coated or treated with candy, chocolate, honey, molasses, sugar, syrup, or artificial sweeteners.
• Chips, crisps, puffs, curls, or sticks (e.g., potato chips, corn chips, cheese puffs, potato sticks, bacon crisps, and cheese curls), popcorn, brittle pretzels, and salted nuts or seeds.
• Granola products and snack mixtures that contain cereals, nuts, seeds, dried fruit, or other edible products.
• Ice lollies, juice bars, ice waters, ice cream, ice milk, sherbet, frozen yogurt, or frozen pudding, including non-dairy substitutes.
• Fruit bars, rolls or drops, or similar fruit-based snack foods.
• Cakes, muffins, pies, pastries, tarts, cookies, doughnuts, brownies, croissants with sweetened filling or coating (many bread products, like bagels, English muffins, croissants, and bread rolls, are already tax-free).
• Pudding, including flavoured gelatine, mousse, flavoured whipped dessert product, or any other products similar to pudding.
• Prepared salads, sandwiches, platters of cheese, cold cuts, fruit or vegetables, and other arrangements of prepared food.
• Food or beverages heated for consumption.
• Beverages dispensed at the place where they are sold.
• Food or beverages sold with catering services.
• Food or beverages sold at an establishment where all or substantially all of the food or beverages sold are currently subject to standard GST/HST (e.g., a restaurant, coffee shop, take-out outlet, pub, mobile canteen, lunch counter, concession stand, etc.).
• Bottled water or unbottled water dispensed at a permanent establishment of the supplier.

Select children’s toys

This includes:

• Toys designed for use by children under 14, including:
• A board game or card game (e.g., a strategy board game, playing cards, or a matching/memory card game).
• A toy that imitates another item (e.g., a doll house, a toy car or truck, a toy farm set, or an action figure).
• A doll, plush toy, or soft toy (e.g., a teddy bear).
• A construction toy (e.g., building blocks, such as Lego, stem assembly kits, or plasticine).

Jigsaw puzzles

• Includes jigsaw puzzles for all ages.

Video game consoles, controllers, or physical game media 

• Includes video game cartridges or discs).

Not to be outdone — on Wednesday, the provincial government announced that Ontario will match the federal GST holiday over the two-month period by removing PST from items not currently covered by provincial rebates, which they estimate will provide nearly $1 billion in additional relief for Ontario families.