Summary#

This bill creates a temporary GST/HST holiday for a defined list of goods and some food-and-beverage services from December 14, 2024 to February 15, 2025. It does this by “zero‑rating” those items during the window, which means sellers charge 0% GST/HST on eligible sales while keeping normal input tax credit rules (Bill Part XI of Schedule VI). It also waives GST/HST on qualifying imports and on items brought into HST provinces during the same period (Schedule VII and Schedule X amendments).

• Zero‑rates certain children’s items, printed books and similar media, qualifying newspapers, Christmas trees, many toys and games, video game consoles, and specified alcoholic beverages (Bill Part XI of Schedule VI).
• Zero‑rates restaurant and catering services for food, non‑alcoholic drinks, and eligible alcoholic drinks, if fully paid for and provided within the window, with limited exclusions referenced in the bill (Bill Part XI of Schedule VI).
• Applies only if the buyer pays in full and receives delivery during the window; a shipment handed to a carrier or mailed within the window counts as delivered then (Bill Part XI of Schedule VI).
• Extends the holiday to qualifying imports and to property brought into HST provinces during the window (Schedule VII and Schedule X amendments).
• Does not affect items already exempt or already zero‑rated (e.g., basic groceries), and does not change separate provincial sales taxes outside the HST system (Bill Part XI of Schedule VI).

What it means for you#

• Households

  • You will not pay GST/HST on listed goods bought and delivered between December 14, 2024 and February 15, 2025. This includes children’s car seats, clothing, diapers, and footwear (as defined in the referenced regulations) (Bill Part XI of Schedule VI).
  • Printed books, qualifying newspapers, scripture, and audiobooks that are spoken readings of printed books are zero‑rated during the window (Bill Part XI of Schedule VI).
  • Christmas trees (natural or artificial) are zero‑rated during the window (Bill Part XI of Schedule VI).
  • Toys, dolls, plush toys, board and card games, jigsaw puzzles, building sets, and similar items for children under 14 are zero‑rated. Video game consoles, game controllers, and physical game media for those consoles are also zero‑rated; digital downloads are not listed (Bill Part XI of Schedule VI).
  • Restaurant and catering bills for food, non‑alcoholic drinks, and “eligible beverages” (defined alcoholic drinks) are zero‑rated if you pay and receive the service during the window, subject to a limited exclusion referenced in the bill (Bill Part XI of Schedule VI).
  • In HST provinces (Ontario, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador), the full HST drops to 0% on eligible items. In other provinces and territories, only the 5% GST drops to 0%; separate PST/QST remains unchanged (Bill Part XI of Schedule VI).
  • To qualify, you must pay in full and receive delivery during the window. For shipped orders, if the seller hands the item to a carrier or mails it during the window, it counts as delivered then (Bill Part XI of Schedule VI).

• Alcohol purchasers

  • Beer, wine, sake, certain fortified products up to 22.9% alcohol by volume, packaged drinks up to 7% alcohol by volume, and certain mixtures are “eligible beverages.” These are zero‑rated if paid for and delivered during the window, including in restaurants and catering (Bill Part XI of Schedule VI).

• Readers and media users

  • Printed books and updates, scripture, qualifying newspapers, and audiobooks that are spoken readings of printed books are zero‑rated. Certain book “bundles” (composite property) are included as defined in regulations (Bill Part XI of Schedule VI).

• Online shoppers and importers

  • For eligible goods, if the seller ships by common carrier, mail, or courier during the window, the sale qualifies as delivered then. Imports of eligible goods during the window should not be charged GST/HST at the border (Schedule VII amendment; Bill Part XI of Schedule VI).

• Businesses and charities

  • You must charge 0% GST/HST on eligible sales in the window, but continue to claim input tax credits as usual. Keep records showing full payment and delivery occurred during the window (Bill Part XI of Schedule VI).
  • Point‑of‑sale systems and invoices must reflect zero‑rating for eligible items from December 14, 2024 to February 15, 2025, and normal rates before and after.
  • For shipped orders, document the date you gave the goods to a carrier, mailed them, or made them available for pickup to support zero‑rating (Bill Part XI of Schedule VI).
  • The import and “brought into a participating province” rules align with the zero‑rating list, affecting self‑assessment and border treatment for eligible goods (Schedule VII and Schedule X amendments).

Expenses#

• Estimated net cost: Data unavailable.

• Key fiscal mechanics

  • The bill zero‑rates GST/HST on specified supplies for December 14, 2024–February 15, 2025, which reduces federal GST revenue and the provincial HST component in participating provinces for those items (Bill Part XI of Schedule VI).
  • Imports of listed goods and property brought into participating provinces are also zero‑rated during the window, reducing border and self‑assessed GST/HST on those items (Schedule VII and Schedule X amendments).
  • No direct appropriations are included. Administrative costs for implementation and guidance are not specified. Data unavailable.

Proponents' View#

• Immediate, visible relief at checkout on common family purchases and restaurant meals, without applications or delays; the tax drops to 0% on eligible sales during the window (Bill Part XI of Schedule VI).
• Supports restaurants and hospitality by removing GST/HST on food, non‑alcoholic drinks, and eligible alcoholic beverages for on‑premise and catered service during the window (Bill Part XI of Schedule VI).
• Helps parents and students by zero‑rating children’s clothing, car seats, diapers, toys, books, newspapers, and scripture during a high‑spending season (Bill Part XI of Schedule VI).
• Time‑limited design contains the fiscal impact while using existing GST/HST systems, which may be simpler to administer than creating a new benefit program (Bill Part XI of Schedule VI).
• Clear timing rules (pay and deliver during the window; shipping deemed delivered when handed to carrier or mailed) reduce disputes over eligibility (Bill Part XI of Schedule VI).

Opponents' View#

• Broad tax holidays are not targeted. Savings scale with how much a household spends in the window, so higher spenders may receive more of the benefit. Distributional impact estimates are not provided. Data unavailable.
• Complex eligibility and timing rules (full payment, delivery window, special shipping deeming, cross‑references to other schedules and regulations) could cause compliance errors and disputes, especially around returns and backorders (Bill Part XI of Schedule VI).
• Short duration may shift purchases into the window rather than lower overall yearly costs, while still reducing tax revenue for the period. Net economic effect is not quantified. Data unavailable.
• Including alcoholic beverages, video game consoles, and controllers may dilute the focus on essentials, raising questions about cost‑effectiveness (Bill Part XI of Schedule VI).
• Businesses must reconfigure point‑of‑sale systems twice (start and end of window), train staff, and maintain extra documentation, which adds administrative burden without compensation (Bill Part XI of Schedule VI; Schedule VII and Schedule X amendments).