The Canadian federal government’s two-month “tax holiday” went into effect on Dec. 14, 2024 and will last until Feb. 15, 2025. 

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What does that mean? The temporary exemption is for consumers, and the government says it will help shoppers save money on certain everyday essentials during the busy holiday period and into the new year.

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The tax break applies only to select items (called “qualifying items”) that were purchased or imported into Canada, paid for in full and delivered during the tax relief period.

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For those items, the Goods & Services Tax (GST) or Harmonized Sales Tax (HST) will be zero.

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To help you make sense of what’s going on, we pulled together information from the Canada Revenue Agency (CRA) and the Canadian Federation for Independent Business (CFIB), and confirmed some details specifically for vintage shoppers and resellers with the CRA’s media team. 

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Note this does not constitute tax or financial advice. For specific GST/HST technical questions, use the hotline at the bottom of this article or consult with a tax lawyer.

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Here are answers to your common questions:

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Does the tax break include vintage, antique and secondhand (used) items?

Yes — so long as they are also products that are eligible for the tax break. See the next question.

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What is included in the tax break that pertains to vintage and secondhand?

Here are the qualifying items of concern to vintage and secondhand buyers and sellers:
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• Children’s clothing and footwear
• Some children’s toys labelled for kids under 14 years old
• Jigsaw puzzles, for all ages
• Video game consoles, controllers and physical video games
• Physical books
• Printed newspapers
• Christmas and similar decorative trees (natural or artificial Christmas trees, or Hanukkah trees/bushes only — does not include decorations)

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Other qualifying categories include food, beverages, restaurants, catering and food & drink establishments, children’s diapers and children’s car seats. 

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Check the CRA website for a detailed list of which items in each of these categories qualify and which ones are exempt.

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‍Note that some categories are limited by size or age. 

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What are notable exemptions that pertain to vintage and secondhand goods?

Here are some items that are not eligible for the GST/HST tax break, meaning you still must charge full tax on them:
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• Adult clothing, jewellery, costumes and specialized clothing (i.e. wetsuits) 
• Collectibles not intended for play or learning, such as hockey cards or collectible dolls
• Toys and model sets marketed to adults
• Collections of patterns or stencils, journals and notebooks, colouring books, etc.  
• Holiday decorations

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For a full list of what is excluded from qualifying goods, check the CRA website.

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What tax do I have to pay/charge during the tax-relief period?

Here is what the tax breakdown looks like in each province or territory until Feb. 15, 2025 on qualifying goods:

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BC, SK, MB: PST only on qualifying goods

AB, NWT, NU, YK: No tax (GST) on qualifying goods

ON, NL, NS, NB, PE: No tax (HST) on qualifying goods

QC: QST only on qualifying goods

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For secondhand buyers

How much can I save with the tax break?

It depends on the price of the item you are buying, but generally, for every $100 spent on qualifying goods you can expect to save $5 to $15.

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What do I need to do to get the tax break on my vintage and secondhand stuff?

Purchase a qualifying item during the relief period and you should not be automatically charged GST or HST.

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You don’t need to save your receipts unless you’ve been accidentally charged GST/HST on a qualifying item.

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I bought a qualifying item from a seller and got charged GST or HST. What do I do?

Go back to the seller and ask them to refund you the tax.

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For secondhand sellers

What if I don’t usually charge tax on my items?

The Canada Revenue Agency does not require you to charge tax if you have not earned $30,000 a year in income for your shop. (Note that most major online marketplaces now charge buyers tax regardless, and they remit it on your behalf.)

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If you are below that threshold, you don’t have to worry much about the GST/HST tax holiday.

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Carry on as normal — but do know that standard provincial tax rules vary and, depending on where you sell your product, you may still be obligated to charge Provincial Sales Tax (PST), regardless of your business’s annual income.

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Is it mandatory to participate if I normally charge tax?

Yes, you are expected to comply on qualifying items through Feb. 15, 2025.

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The federal government recognizes that it is challenging for small businesses to implement the measure, but they are still expected to “make a reasonable effort to comply,” it says in a statement.

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The CRA’s website does not offer a claims process for shoppers who have been mistakenly charged GST/HST — it loops consumers back to the seller to be refunded if they’ve been charged the tax in error. 

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If you fail to comply but get a customer requesting their tax refund, you must issue it. It’s easier if you tax the items correctly in the first place.

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Will I get audited if I don’t comply?

There’s never a guarantee either way.

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The CRA issued the following statement regarding non-compliance:

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“We will be focusing on situations where businesses willfully and egregiously refuse to comply with the temporary measures, such as a business that collects the GST/HST and does not remit it to the CRA.”

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How much tax do I remove from qualifying items?

That varies depending on your province.

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For provinces that use Harmonized Sales Tax (HST), the tax you charge on qualifying goods will be zero for the duration of the tax holiday.

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For provinces that use GST only or that separate GST/PST, the GST will be zero. PST or QST will still apply. 

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How do I change the tax I charge?

The government expects business owners to remove the GST or HST at point-of-sale (POS) for qualifying items.

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In order to accommodate, you need to adjust your POS system, or, if you add tax manually, your calculations. 

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If you sell the qualifying items and operate a booth at a vintage or antique mall with a central cash that normally charges tax, make sure the operator has adjusted their POS.

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If you sell on an online marketplace that automatically collects tax, check the site’s documentation — they should have already adjusted for qualifying items.

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What if I make a mistake and accidentally charge GST or HST on a qualifying item?

You will need to refund that customer the GST or HST.

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Can I still get GST back when I purchase inventory during the tax holiday?

Yes, you still can get your input tax credits (ITCs) for inventory purchased throughout the duration of the tax holiday. 

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How can I make my customers aware of the tax break?

The tax break is intended to save consumers money — so if you sell the qualifying items, let them know! 

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Post on social media, include signage in your booth or shop, send out promotional emails and/or create a GST/HST-free section of your website or online storefront.

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More resources

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Canada Revenue Agency Website

‍canada.ca/en/services/taxes/child-and-family-benefits/gst-hst-holiday-tax-break.html

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CRA GST/HST hotline if you have specific questions

1-800-959-8287

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Canadian Federation of Independent Business 

https://www.cfib-fcei.ca/en/site/gst-holiday

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