A two-month GST/HST tax holiday on certain essential items starts today, and while that’s good news for families and shoppers, it’s a confusing headache for many small business owners who are trying to navigate what’s eligible for the discount and what’s not.
Peg Norman of the Travel Bug says it’s a lot harder than it sounds, and to now, the federal government website has not offered much more clarity.
Norman offers one of her products as an example. “We sell an item called the Spy Belt, which is designed to be worn very close to the body. The kids version, is worn by kids that use it for carrying their EpiPens, or their insulin pumps, but it’s not technically clothing, so is that included? I don’t know!”
She’s hopeful that the federal government won’t decide to come back and challenge how much tax she’s collected during that two-month period.
Items covered by the temporary GST/HST break include things like prepared foods, including vegetable and fruit trays, pre-made meals and, salads and sandwiches.
Some alcoholic beverages, including beer and wine, are now exempt from the 15 per cent HST. For example, a dozen cans of beer will be about $4.20 less, dropping the case to over $29 from over $33.
Snack foods, including chips, candy, and granola bars, are also on the list.
Children’s toys, clothing and footwear will also see the tax break along with car seats and diapers, while books, printed newspapers and puzzles for all ages are also included.
The tax on Christmas trees is discounted for those who waited to buy.