GST/HST Tax Holiday: Rebate Applications

Posted on February 24th, 2025 in Commodity Tax (HST), Domestic Tax

Close up of person grocery shopping, holding a green shopping basket and grabbing a bottle of the shelf. Only arm and leg of person is visible.

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.

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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Article originally published in: Tax Tips & Traps 2025 First Quarter – Issue 149.