GST/HST Tax Relief for Importers
Trade Update • Dec. 16, 2024
he Government of Canada has introduced a temporary Goods and Services Tax/Harmonized Sales Tax (GST/HST) relief on specific goods imported into Canada from December 14, 2024, to February 15, 2025. This initiative aims to reduce the financial burden on Canadians during the holiday season by making essential items more affordable.
GST/HST Tax Relief
The GST/HST tax relief applies to many essential and festive goods, but certain items are excluded to ensure targeted support.
Eligible Goods: Food and Beverages (groceries, prepared meals, and select alcoholic beverages such as beer, wine, and cider with an alcohol content of up to 7% ABV), Children’s Clothing and Footwear (apparel and footwear designed specifically for children), Children’s Diapers (all types, including disposable and reusable varieties), Children’s Toys (items intended for children under 14 years, such as dolls, board games, and construction sets), and Holiday Decorations (Christmas trees, both natural and artificial, and similar decorative items).
See full list of qualifying goods here.
Non-Eligible Goods: Items classified under generic tariff classifications in Heading 98.25 of the Customs Tariff, including spirits with an alcohol content exceeding 7% ABV, digital publications, and adult-oriented collectibles or toys.
Import Streams
The GST/HST relief applies to goods imported through the following import streams:
- Postal Stream: Goods shipped via national postal services, including Canada Post.
- Courier Low Value Shipment (CLVS) Stream: Goods imported through couriers under the CLVS program, applicable to shipments valued at CAN$3,300 or less.
- Commercial Stream: Goods imported for commercial purposes, declared through the CBSA Assessment and Revenue Management (CARM) system.
Each stream requires proper documentation and declaration to ensure eligibility for the tax relief during the specified period. Importers must use the designated exemption code “24-25-GSTTPS” in the “Special Auth. OIC” field for qualifying goods in the CBSA Assessment and Revenue Management (CARM) system.
Refunds
If GST/HST was paid on eligible goods imported between December 14, 2024, and February 15, 2025, importers may apply for a refund. The process differs based on whether the goods are non-commercial or commercial:
Non-Commercial Goods:
- Refunds can be requested by completing Form B2G (CBSA Informal Adjustment Request Form).
- Submit the form along with supporting documentation (e.g., receipts, proof of import) to the appropriate Casual Refund Centre listed on the form.
Commercial Goods:
- Adjustments for GST/HST paid can be submitted through the CBSA Assessment and Revenue Management (CARM) system.
- Importers need to file an adjustment request for the affected Commercial Accounting Declaration (CAD) using the procedures outlined in CBSA Memorandum D17-2-1.
It is essential to retain all relevant documentation, including import records and proof of payment, to facilitate the refund or adjustment process. Refund requests must adhere to CBSA’s specified timelines and requirements.
Important
Relief Period: The GST/HST tax relief is applicable only to goods released between December 14, 2024, and February 15, 2025, regardless of the purchase date. Goods purchased during the relief period but released after February 15, 2025, will not qualify.
Eligible Programs: Goods imported under the Courier Import Remission Order (CIRO) or benefiting from non-taxable status under Schedule VII to the Excise Tax Act may also qualify for this tax break.
Customs Bonded Warehouses: Goods stored in Customs Bonded Warehouses before December 14, 2024, are not eligible for this exemption unless they are removed from the warehouse during the relief period.
Questions on whether or not your goods qualify and how to apply for refunds? Email us at: gts@ghy.com, or call: +1 (800) 667-0771.
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