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An analysis by Borden Ladner Gervais, Taxand Canada
The Canadian government has recently announced a temporary goods and services tax/harmonised sales tax (GST/HST) relief on selected goods from December 2024 to February 2025. This includes children’s clothing, certain toys, print newspapers, some food items, and low-alcohol beverages. The relief covers both federal GST and provincial HST in participating provinces but excludes independently administered provincial sales taxes.
Owen Clarke and Tanner Shapka from our Canadian member firm Borden Ladner Gervais, have analysed this measure in a recent article which can be read here. While designed to ease living costs, experts note significant challenges for businesses, including the need for quick system updates, resolving product classification issues, and managing compliance costs. Businesses are advised to act promptly to implement these changes, ensure clarity on eligible items, and maintain thorough records to prepare for potential audits.
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