
Tax Proposals: Capital Gains Inclusion Rate
February 3, 2025
Canada Carbon Rebate for Small Businesses
February 10, 2025
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.
ACTION: Ensure to keep receipts for purchases where GST/HST was charged improperly. Multiple claims can be included in a single rebate submission.