December 13, 2024. The Government of Canada has introduced a temporary GST/HST tax break for certain goods imported into Canada. This tax relief, effective from December 14, 2024, to February 15, 2025, is designed to support the holiday season and provide relief on essential items such as groceries, clothing, toys, and gifts.
1. Tax Relief Details:
- The GST/HST will be fully relieved on qualifying goods imported into Canada during the two-month period.
- Eligible Goods include food, beverages, children’s clothing, diapers, toys, and holiday decorations. For a full list, please refer to the table below.
- Non-Eligible Goods will not benefit from this relief, including goods classified under generic tariff classifications in heading 98.25 of the Customs Tariff.
2. Import Streams Covered:
- This tax break applies to goods imported through the postal, Courier Low Value Shipment (CLVS), and commercial streams.
- Importers will need to accurately declare eligible goods on the Commercial Accounting Declaration (CAD) using the exemption code “24-25-GSTTPS” in the “Special Auth. OIC” field in the CBSA Assessment and Revenue Management (CARM) system.
3. Refunds:
- For goods released prior to the introduction of the exemption, or where GST/HST was incorrectly applied, importers can submit refund requests.
- Commercial Goods: Adjustments to the CAD can be made using the exemption code.
- Casual Goods: Refund requests can be submitted using Form B2G and supporting documents.
Qualifying Goods (Full List of Categories)
| Type | Details |
|---|---|
| Food | Includes groceries, snacks, and holiday food items. |
| Beverages | Includes drinks, alcohol (subject to restrictions). |
| Children’s Clothing and Footwear | Includes clothing, shoes, and accessories for children. |
| Children’s Diapers | Includes all types of diapers. |
| Children’s Car Seats | Includes infant and toddler car seats. |
| Children’s Toys | Includes all types of toys for children. |
| Jigsaw Puzzles | Qualifies for all ages. |
| Video Game Consoles, Controllers, and Games | Includes consoles and physical video games. |
| Physical Books | Includes printed books. |
| Printed Newspapers | Includes physical newspapers. |
| Christmas Trees and Decorations | Includes real and artificial trees and related decorations. |
Important Notes:
- Goods purchased during the relief period but released after February 15, 2025 will not qualify.
- Goods imported under the Courier Import Remission Order (CIRO) or those benefiting from non-taxable status under Schedule VII to the Excise Tax Act may also be eligible for this tax break.
- Importers of goods in Customs Bonded Warehouses before December 14, 2024 are not eligible for this exemption unless goods are removed between December 14, 2024 and February 15, 2025.
Compliance and Monitoring:
The CBSA will ensure compliance with the exemption through existing systems. Importations may be subject to examination and post-release verification. Non-compliance could result in penalties, assessments, and interest.
Read the full Customs Notice, here.
Buckland is here to support your compliance with these changes and assist you with any questions regarding GST/HST relief on your imports. If you have any questions, please contact your Buckland representative.