For the December 14, 2024 to February 15, 2025 period, certain items normally subject to GST/HST should not have GST/HST applied at the point of sale. Businesses selling these goods can still claim input tax credits for the GST/HST they paid on inputs acquired to supply the good, as they are zero-rated. The types of items covered by this temporary measure include (but are not limited to):
– children’s clothing, footwear, diapers and car seats;
– select children’s toys, jigsaw puzzles and video games/devices;
– printed newspapers and books;
– Christmas and similar decorative trees; and
– various foods and drinks (including some alcoholic drinks), including but not limited to those provided at establishments like restaurants.

If GST/HST is mistakenly charged on the purchase of one of these goods, the purchaser can request a refund directly from the supplier.

If the supplier does not provide a refund or is no longer in business, the purchaser can apply to CRA for a GST/HST rebate (minimum claim is $2) using Form GST189: Rebate under reason code 1C, “Amounts paid in error.” The application must be filed within two years after the date the amount was paid in error. CRA has suggested that a purchaser consolidate all their claims (including associated receipts) and submit a single rebate application after the GST/HST break period is over.

ACTION: Ensure to keep receipts for purchases where GST/HST was charged improperly. Multiple claims can be included in a single rebate submission.

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