Request a Demo

Canada GST/HST Tax Holiday

Overview

The Government of Canada has announced a two-month GST/HST holiday, effective from December 14th, 2024, to February 15th, 2025. During this time, businesses are expected to remove GST or HST from qualifying goods at checkout.

Examples of qualifying items may include various goods and services commonly sold in restaurants. To ensure compliance and for a full understanding of qualifying items under the GST/HST holiday, please refer to the official government announcement.

It is important to note that this proposal is still under review by the federal Senate and not yet passed into Legislation. We will be sure to update any content if the legislation differs from the proposal.

Resources

  • Squirrel and Restaurants Canada will be hosting a Live Stream on the Squirrel YouTube channel on Thursday, Dec. 5th at 11 AM PST.
  • See below for a simplified set of instructions if you are familiar with Squirrel menu and tax configuration.
  • See this help article for a more detailed set of instructions.
  • If you would prefer to have a Squirrel professional handle this configuration change on your behalf, please complete this form no later than December 7 and we will make arrangements.

Instructions

Preparation (any time between now and December 13th)

  1. In Advanced Setup → Tax Groups, create a new tax group that is a copy of the Liquor Tax Group and name it “Beer & Wine” for example. This will be used for Coolers (<7% ABV), Beer, and Wine. See Tax Groups for more on how to do this.
  2. In Daily Setup → Menu Entry Setup, change the assigned Tax Group from Liquor Tax to the newly created Beer & Wine Tax for all menu entries that apply. That is, all Coolers (<7% ABV), Beer, and Wine. See Menu Entries for more on how to do this.

Final Preparation (On Dec 13th)

  1. In Advanced Setup → Tax Groups, deselect the GST or HST tax in all departments for the Food and the newly created Beer & Wine Tax Groups. Leave the existing “Liquor” tax group as-is since the remaining menu items that use this tax group should all be in the “spirits” category that are exempt from the GST/HST holiday.

Treat the same as other advanced configuration changes by allowing a normal nightly Shutdown and Start of a new business day for it to take effect.

Important Reminder

The GST/HST holiday ends on February 15th, 2025. Be sure to reinstate taxes promptly by updating your POS configuration on this date.

You can do this by simply re-selecting GST or HST in the Food and Liquor Tax Groups. You can leave the Spirit Tax Group assigned to the menu items for Spirits and Spirit Coolers (Above 7% ABV) as the tax is already being applied and will remain unchanged.

Disclaimer

This guide provides instructions for updating your Squirrel POS system to comply with the GST/HST holiday. It does not cover all aspects of the legislation. Businesses are responsible for ensuring compliance with current tax laws and consulting official government resources for up-to-date information. Squirrel Systems cannot guarantee the accuracy of this guide and is not liable for any outcomes arising from its use.

Thank you,
The Squirrel Team