GST/HST tax holiday: What you need to know
Restaurants Canada celebrated a major victory for the foodservice industry when the federal government announced a temporary GST and HST holiday on all restaurant meals, among other goods.
We want to be fully transparent with you: there was a real risk of restaurants being left out of the GST holiday. In fact, the initial NDP proposal for a GST holiday excluded our sector, which would have put restaurants at a major disadvantage compared to prepared foods from grocery stores; a significant competitor of restaurants. Our industry would not have been included if it wasn’t for the months of pressure, and impactful advocacy we have been putting on the federal government to provide real and meaningful relief to foodservice businesses. The inclusion of alcohol in the tax holiday was also not guaranteed and is a significant boon to our industry.
We’re thankful to the federal government for listening to Restaurants Canada and taking such meaningful action to support our industry
With the busy holiday period already underway, we know operators are scrambling to get ready. The legislation for the tax holiday was just passed in the House of Commons on November 28 and the CRA just released their guidelines. We have assembled a short list of Frequently Asked Questions about the GST and HST tax holiday to help you as you are implementing these changes.
For any questions regarding the GST/HST Holiday, you can now contact CRA’s hotline.
English: 1 800 959 8287 | French: 1 800 959 8296
The government has announced a list of items which will be exempt from Goods and Services Tax (GST) and Harmonized Sales Tax (HST) from December 14, 2024, to February 15, 2025. For restaurants, this includes all food, all non-alcoholic beverages, all beer and malt beverages, all wine, cider and sake up to 22.9% ABV, as well as bottled or canned pre-packaged coolers up to 7% ABV. Spirits and spirit-based cocktails made on premises are not included in the tax holiday. You can find a full list of exempt products here.
We are pushing provincial governments to follow the federal lead and exempt restaurant meals from PST as well. The full HST will be exempted in Ontario, Newfoundland and Labrador, PEI, New Brunswick and Nova Scotia. We appreciate the clear communication by the Premiers of Ontario, PEI and Newfoundland and Labrador regarding the HST holiday.
Banquet halls and event centres: Catered meals, including the catering fee for providing, preparing, or serving qualified food and beverages are GST exempt, but other labour and rental costs are not.
Gift cards: Customers can use gift cards to pay for their meals during the GST and HST holiday. Customers who buy gift cards during the two months of the GST and HST holiday will not receive the tax exemption on meals purchased after the tax holiday ends.
Restaurants are facing low consumer demand. Canadians are eating out less as they struggle with affordability, as shown in our most recent React Survey.
That is why Restaurants Canada has been urging the federal government for months to provide real cost relief to Canadians and restore consumer confidence to stimulate discretionary spending.
Restaurants Canada’s Chief Economist’s analysis shows the GST and HST holiday will serve as a strong incentive for price-conscious consumers to loosen their budgets during the two-month exemption period. This holiday season and into the slower winter months, they will have more discretionary income to go out to eat, order take-out or treat themselves to a pastry on the way to work. They may also order that extra dessert or drink they have been going without as we have all seen lowering of average cheques. Based on historical trends, we know that for every 1% decrease in sales taxes there is a corresponding 1% increase in foodservice sales all other things being equal.
This means the GST and HST holiday could lead to an increase in sales of $1.5B across the entire industry.
Restaurants Canada’s Richard Alexander and Squirrel answer your questions on the GST and HST holiday and how to handle the changes on your POS.
Restaurants Canada has contacted the major POS providers to ask if they will be sharing special instructions with their clients in the coming days. Our partner, TouchBistro,has assured us they are already reaching out to their users and are putting together a how-to guide. We advise you to contact your POS provider in the coming days to prepare for the exemptions.
The legislation for the GST and HST holiday still must be reviewed by the Senate and passed into law, which we expect to happen in the coming days. We will keep you informed of any updates as we know more.
GST/HST Holiday Social Sharables
The GST/HST Holiday is just around the corner and is expected to bring an additional $1.5B in spending into our industry! From December 14 to February 15, restaurant meals and select beverages will be GST/HST-free — a huge opportunity to encourage diners to enjoy a meal out while supporting local restaurants. Click below to download our sharables and help spread the word about this huge industry win!
Post copy: Unwrap the magic of the holidays with us! ✨ From December 14th until February 15th, enjoy your favourite meals, sweet treats and more GST/HST-free. We look forward to seeing you soon!
Post copy: Did you hear that GST/HST-free dining is here? From December 14 until February 15, make your meals a little merrier by dining in with us. We can’t wait to see you soon! ✨
Post copy: Season’s eatings! From December 14 until February 15, dine in with us and enjoy your meals GST/HST-free. Bring your friends, family, or colleagues to savour your savings! We can’t wait to serve you! 🍽️
Post copy: Dine out, save big! From Dec. 14 to Feb. 15, enjoy your favourite meals GST/HST-free. Don’t miss this chance to treat yourself while supporting local restaurants!
Post copy: Go ahead and treat yourself this holiday season – it’s GST/HST-free! That’s right. From December 14 to February 15, GST/HST will no longer be charged on your favourite desserts, meals, and more. Come dine with us and support local!
Post copy: Save on tax, savour the flavours! The GST/HST Holiday is giving Canadians even more reasons to enjoy dining out this winter. Let’s celebrate local food and community!
Partageables pour les vacances de la TPS/TVH
Le congé de TPS/TVH approche à grands pas et devrait générer 1,5 milliard de dollars supplémentaires en dépenses pour notre industrie! Du 14 décembre au 15 février, les repas au restaurant et certaines boissons seront exemptés de TPS/TVH — une occasion en or pour encourager les gens à sortir dîner tout en soutenant les restaurants locaux. Cliquez ci-dessous pour télécharger nos outils de partage et aider à faire connaître cette grande victoire pour notre industrie!
Déballez la magie des fêtes avec nous! ✨ Du 14 décembre au 15 février, savourez vos repas préférés, douceurs et plus encore sans TPS/TVH. Nous avons hâte de vous voir bientôt!
Avez-vous entendu parler de l’exemption de TPS/TVH sur les repas? Du 14 décembre au 15 février, rendez vos repas encore plus festifs en venant dîner avec nous. Nous avons hâte de vous accueillir! ✨
Économisez sur la taxe, savourez les douces saveurs! Le congé de TPS/TVH offre aux Canadiens encore plus de raisons de sortir dîner cet hiver. Célébrons la cuisine locale et notre communauté!
