If you haven’t filed your taxes yet, don’t panic — there’s still time to get it done before the deadline. Taking action now can help you avoid unnecessary penalties, interest, and added stress.
At TNT Books, we’re here to make the process simple and stress-free. Whether you’re behind, unsure what you need, or just haven’t had the time, we can help you get across the finish line quickly and accurately.
✅ Maximize your return ✅ Stay compliant with CRA requirements ✅ File with confidence
📅 The deadline is fast approaching — don’t wait until the last minute.
👉 Reach out today and let’s get your taxes filed on time: https://tntbooks.ca
People wait until the last minute to file their taxes… and then stress sets in.
But here’s the simple truth: the earlier you file, the earlier you receive your refund.
If you’re expecting money back this year, there’s no reason to let it sit with the government longer than necessary.
Why Filing Early Makes a Difference
When you file your tax return early:
1. You Get Your Refund Sooner
The Canada Revenue Agency (CRA) typically processes electronically filed returns in as little as two weeks. That means filing in February or early March could put your refund in your bank account weeks — even months — before the April rush.
Why wait until spring if you could have that money working for you now?
2. You Reduce Stress
Waiting until the deadline creates unnecessary pressure. Filing early gives you peace of mind and removes one major item from your to-do list.
3. You Avoid Delays
As we get closer to the April 30 deadline, processing times can slow down. Filing early helps you avoid the backlog.
4. You Protect Yourself from Fraud
Filing early also reduces the risk of tax-related identity theft. Once your return is submitted, no one else can file using your information.
“But I’m Missing a Slip…”
Many people delay filing because they’re unsure whether all their slips have arrived. In most cases, slips are available in your CRA My Account, and we can help confirm what’s still outstanding.
Don’t let uncertainty delay your refund.
Make Your Money Work Sooner
Whether your refund is going toward:
Paying down debt
Investing
Home improvements
A family vacation
Or simply catching up on bills
Getting it earlier gives you more flexibility.
Let’s Get It Done
At TNT Books, we make the process simple, secure, and stress-free. The sooner you send in your documents, the sooner we can file — and the sooner you can get your refund.
Fraudsters are getting more sophisticated — and they often impersonate trusted institutions like your bank or the Canada Revenue Agency (CRA). These scams can look convincing, sound urgent, and arrive by email, text, phone call, or even mail.
At TNT Books, we regularly see clients receive suspicious messages and wonder: Is this real? Knowing the warning signs can help protect your money, your identity, and your peace of mind.
Below are key ways to recognize fraudulent requests and what to do if you receive one.
Common Red Flags to Watch For
1. Urgent or Threatening Language
Scammers rely on panic. Messages may claim:
Your account will be frozen
You owe back taxes immediately
Legal action or arrest is imminent
Benefits will be cancelled unless you act now
Legitimate banks and the CRA do not threaten arrest, demand immediate payment, or pressure you to act instantly.
2. Requests for Personal or Login Information
Fraudulent messages often ask for:
SIN numbers
Online banking usernames or passwords
One-time verification codes
Credit card details
Neither your bank nor the CRA will ask for sensitive information by email, text, or unsolicited phone calls.
3. Unusual Payment Requests
Be very cautious if you’re asked to pay:
By gift cards
By cryptocurrency
By wire transfer
Through e-transfer to a personal email address
The CRA does not accept these forms of payment.
4. Suspicious Links or Email Addresses
Watch for:
Misspelled sender names or domains
Links that don’t match official websites
Generic greetings like “Dear Customer” instead of your name
When in doubt, do not click. Go directly to the official website by typing it into your browser.
How the CRA Actually Communicates
The CRA typically contacts taxpayers by:
Mail (especially for formal notices)
Secure messages within your CRA My Account
Phone calls (but they will never demand immediate payment or threaten arrest)
If you’re unsure, log in to CRA My Account or call the CRA using the phone number listed on their official website — not the one provided in the message.
What to Do If You Receive a Suspicious Request
Pause. Don’t click, reply, or provide information.
Verify independently. Contact your bank or the CRA using official contact details.
Report the scam.
CRA scams: report to the CRA and the Canadian Anti-Fraud Centre
Banking scams: notify your financial institution immediately
Let your accountant know. Especially if the message relates to taxes, payroll, or business accounts.
Why This Matters for Small Businesses
Business owners are frequent targets because scammers know:
You manage multiple accounts
You deal with payroll and remittances
You may expect CRA communication
One wrong click can lead to financial loss or data breaches. Staying cautious is part of protecting your business.
Need a Second Opinion?
If you receive a message claiming to be from the CRA or your bank and aren’t sure if it’s legitimate, TNT Books is happy to help you assess it. A quick check can prevent a costly mistake.
Staying informed is one of the best defenses against fraud — and we’re here to help you stay protected.
As the year comes to a close, all of us at TNT Books would like to extend our heartfelt thanks to our clients, partners, and community.
This year brought growth, challenges, and new opportunities—and we’re truly grateful to have supported you along the way. Whether we helped keep your books organized, guided you through tax season, or provided clarity around your finances, it’s been a pleasure working with you.
The holiday season is a time to reflect, recharge, and prepare for what’s ahead. As you celebrate with family and friends, we hope you enjoy peace of mind knowing your bookkeeping and accounting needs are taken care of.
Looking Ahead to 2025 & Tax Season
The new year will be here before we know it—and early planning makes all the difference when it comes to tax time.
📌 The personal tax filing deadline is April 30, 2026, and we strongly encourage clients to reach out early for 2025 tax planning and preparation. Getting started sooner helps reduce stress, avoid last-minute surprises, and ensure accuracy.
👉 To learn more about our services and secure your spot for the upcoming tax season, visit: Plans & Pricing
As always, our commitment remains the same:
Accurate and reliable bookkeeping
Clear, actionable financial insights
Personalized support tailored to your needs
From all of us at TNT Books, we wish you a joyful holiday season, a successful New Year, and continued financial success in 2025 and beyond.
As the calendar year winds down, Canadians often shift their focus to holiday preparations—but it’s also one of the most important times to plan ahead for taxes. Whether you’re an individual taxpayer or a business owner, year-end is your last opportunity to take strategic steps that can reduce your tax burden and set you up for a strong start to the new year.
Below are the most effective year-end tax planning strategies for Canadians, along with practical tips you can implement before December 31.
For Individuals
1. Maximize Your RRSP & TFSA Contributions
While RRSP contributions can be made up until 60 days after year-end, contributing earlier allows you to take advantage of tax-deferred growth sooner. If you expect to be in a higher tax bracket this year than next, maximizing your RRSP can provide a more valuable deduction.
TFSA contributions aren’t tax-deductible, but all growth and withdrawals are tax-free—making it a smart vehicle for long-term savings. Confirm your remaining contribution room through CRA’s MyAccount.
2. Consider Tax-Loss Harvesting
If you hold non-registered investments that have declined in value, you can sell them before year-end to realize capital losses. These losses can offset capital gains realized this year or be carried back/forward to other tax years.
Be mindful of the superficial loss rules, which restrict claiming a loss if you repurchase the same security within 30 days.
3. Make Charitable Donations Before December 31
Eligible donations made before year-end can produce valuable non-refundable tax credits. Donations of publicly traded securities with accrued gains may offer additional tax advantages, including avoiding capital gains tax.
4. Take Advantage of Medical and Child-Care Expenses
If you’re close to meeting minimum thresholds for medical expense claims, consider advancing planned expenses into the current year. Child-care expenses—including day camps, daycare, and some tutoring—may also be deductible if paid before year-end.
5. Review Your Income Sources
If you have flexibility (e.g., self-employment income), consider whether deferring income into the next year may reduce your tax obligation—especially if you anticipate being in a lower tax bracket.
For Businesses
1. Review Capital Asset Purchases
Under Canada’s Capital Cost Allowance (CCA) rules, purchasing eligible equipment, vehicles, computers, and other capital assets before year-end may allow you to claim a portion of the depreciation this year. Certain assets may qualify for immediate expensing, depending on current CRA rules.
2. Optimize Owner Compensation
Many incorporated business owners should evaluate their salary vs. dividend mix prior to year-end. A salary can create RRSP room and allow for CPP contributions, while dividends may offer tax efficiency depending on provincial rates.
Reviewing this with an accountant ensures alignment with your income needs and long-term tax plan.
3. Manage Inventory and Write-Downs
Year-end inventory counts can identify obsolete or unsellable goods. Writing these down can reduce taxable income and provide a clearer financial picture heading into the next year.
4. Pay Employee Bonuses Before December 31
If the company declares bonuses before year-end—even if paid within 179 days—they’re deductible in the current fiscal year. This offers flexibility while still improving employee retention and motivation.
5. Review GST/HST and Payroll Accounts
Year-end is a good time to ensure your GST/HST filings, instalments, and payroll remittances are up to date. Errors or late payments can result in penalties that are easily avoidable with a cleanup before the year closes.
General Best Practices for Everyone
Stay Organized
Collect receipts, charitable donation slips, medical records, investment statements, and business documents. Digital recordkeeping tools can simplify your life come tax season.
Check CRA Updates
Tax credits, contribution limits, and rules often change from year to year. Reviewing current CRA guidance ensures your planning aligns with the latest regulations.
Consult a Professional
A tax advisor can help identify opportunities specific to your situation—particularly around compensation strategies, corporate structure, investment planning, and deductions you may not be aware of.
Final Thoughts
Year-end tax planning isn’t just about reducing your tax bill—it’s about making informed decisions that support your financial goals. By taking time now to review your income, investment
What Canadians need to know about new tax measures, credits, and policy changes — and how they could impact your finances.
After a months-long delay, the 2025 federal budget introduced a suite of tax measures that will shape the financial landscape for Canadians in the coming years. While some changes are incremental, others mark significant shifts in policy, with implications for individuals, business owners, and investors alike. Here’s a closer look at the most impactful changes and what they mean for Canadians based on insights from Jamie Golombek’s 2025 federal budget report (PDF, 455 KB)Opens a new window..
Middle-class tax cut: More money in Canadians’ pockets
A headline item is the reduction in the lowest personal income tax rate. Announced earlier in May and now included in Bill C-4, the first marginal personal income tax rate will drop from 15% to 14.5% for 2025, and to 14% in 2026 and beyond. The updated tax brackets and federal tax rates for 2025 are as follows:
Taxable income
Federal tax rate
Up to $57,375
14.5%
$57,375 – $114,750
20.5%
$114,750 – $177,882
26.0%
$177,882 – $253,414
29.0%
Above $253,414
33.0%
This move is intended to put more money in the pockets of Canadians, particularly those in lower and middle-income brackets. However, a technical quirk threatened to reduce the value of the tax savings of non-refundable tax credits since the value of those credits is also based on the lowest tax bracket. To address this, the government introduced a “Top-up tax credit” designed to ensure that no taxpayer is worse off due to the rate reduction — a targeted fix that will apply from 2025 to 2030.
Home accessibility and medical expense credits: No more “double-dipping”
The Home Accessibility Tax Credit (HATC) and the Medical Expense Tax Credit (METC) have long provided relief to seniors and individuals with disabilities undertaking certain home renovations. Under current rules, it was possible to claim both credits for the same expense. The budget closes this advantage, effective January 1, 2026, meaning that Canadians have until the end of 2025 to make claims under both credits for a single expense.
New support for personal support workers
Recognizing the essential role of personal support workers (PSWs), the budget introduces a temporary refundable tax credit for eligible PSWs working in health care establishments. The credit is worth 5% of eligible earnings, up to $1,100 annually, and will be available from 2026 to 2030. Notably, amounts earned in British Columbia, Newfoundland and Labrador, and the Northwest Territories are excluded, as these provinces have separate agreements in place to increase PSW wages.
Flow-through shares and critical minerals
Flow-through shares let corporations pass certain exploration and development expenses to investors, who can deduct these costs from their taxable income. The Critical Mineral Exploration Tax Credit (CMETC) gives investors a 30% tax credit on eligible mineral exploration expenses. The list of qualifying minerals is expanded in the 2025 budget to include bismuth, cesium, chromium, fluorspar, germanium, indium, manganese, molybdenum, niobium, tantalum, tin, and tungsten. This is designed to bolster Canada’s position in the global supply chain for clean technology and advanced manufacturing. These new rules apply to flow-through share agreements made after November 4, 2025 and before March 31, 2027. However, the budget cancels a previously proposed change that would have allowed full resource expense deductions under the Alternative Minimum Tax (AMT) regime, which may result in higher taxes for some investors.
Trust planning: Closing loopholes
The “21-year rule” prevents trusts from indefinitely deferring capital gains taxes by deeming a trust to have disposed of its property every 21 years. Although this disposition can be avoided by transferring the property at its cost to beneficiaries, if the transfer is to another trust the original 21-year period will continue to apply. The budget tightens anti-avoidance rules to capture indirect transfers of property between trusts — an area where tax planners have previously found workarounds. This change, effective for transfers after November 4, 2025, underscores the government’s intent to ensure fairness and limit aggressive tax planning.
Repeal of underused housing and luxury taxes
The Underused Housing Tax (UHT), which targeted underused and vacant homes generally owned by non-residents, will be eliminated for the 2025 calendar year and beyond. No UHT will be payable or returns required for 2025 and future years, though obligations for previous years remain. Similarly, the luxury tax on boats and airplanes, which applied to high-value purchases, will end after November 4, 2025. It will continue to apply to higher-end vehicles.
RRIF minimums: No change for retirees
Despite campaign promises, the budget does not reduce the required minimum withdrawals from Registered Retirement Income Funds (RRIFs). Many seniors had hoped for more flexibility to manage their retirement savings, but for now, the status quo remains.
Business tax measures: Support for manufacturing, cancellation of entrepreneur incentives
To spur investment in manufacturing, the budget introduces temporary immediate expensing for certain new or improved manufacturing and processing buildings. This allows qualifying businesses to deduct 100% of eligible capital costs in the first year, for properties first used before 2030. However, the previously announced Canadian Entrepreneurs’ Incentive, which would have lowered the tax rate on up to $2 million of capital gains from selling shares of a qualifying corporation over an individual’s lifetime, has been cancelled. The proposed enhanced $1.25 million lifetime capital gains exemption remains.
Administrative changes: Automatic filing and bare trust reporting
Our tax system relies on self-reporting, which means some low-income Canadians may miss out on income-tested government benefits simply because they don’t file a tax return. The budget proposes a solution: the CRA will be able to automatically file a tax return for eligible individuals whose income comes from sources already reported to the CRA, and who haven’t filed a return in the last three years. Before filing, the CRA will send the taxpayer the information it has, giving them 90 days to make changes or opt out. This could start as early as the 2026 tax season. Meanwhile, the requirement for bare trusts to file tax returns has been delayed until 2026, giving trustees some breathing room to prepare the returns.
What it all means
For Canadians, the 2025 federal budget delivers a combination of tax relief, targeted credits, and tighter rules designed to close loopholes and promote fairness. As always, those affected by the changes should consult a tax professional to understand the implications for their specific circumstances. To discuss how these changes may affect your own goals and financial plans, speak with a CIBC advisor for personalized advice and support.
Everything You Need to Know for a Smooth Tax Season
Introduction
As the year draws to a close, it’s time for Canadian employers and employees to review their taxable benefits. Whether you’re a business owner, payroll administrator, or employee, understanding how taxable benefits work can help you avoid surprises at tax time and ensure compliance with the Canada Revenue Agency (CRA). This post provides a comprehensive year-end overview of taxable benefits in Canada, with practical tips for both employers and employees.
What Are Taxable Benefits?
Taxable benefits are non-cash perks or allowances provided by an employer that are considered a form of income. These must be included in the employee’s total income and are subject to income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums. Examples include company vehicles, health and dental plans (in certain cases), gifts over a specified value, and more.
Common Types of Taxable Benefits
Automobile Benefits: Personal use of a company car, or reimbursement for vehicle expenses.
Group Insurance Premiums: Employer-paid contributions to certain life or disability insurance plans.
Gifts and Awards: Non-cash gifts valued over the CRA threshold, or cash/near-cash gifts.
Housing and Accommodation: Employer-provided housing, rent subsidies, or housing allowances.
Loan Benefits: Low-interest or interest-free loans from the employer.
Stock Options: When employees exercise their right to purchase shares at a discount.
Year-End Checklist for Employers
Review All Benefits Provided: Ensure that all taxable benefits for the calendar year are accurately tracked and reported.
Calculate the Value: Use CRA guidelines to determine the fair market value of each benefit.
Update Payroll Records: Add the value of taxable benefits to the employee’s income for the year.
Withhold Deductions: Make appropriate deductions for income tax, CPP, and EI on taxable benefits.
Report on T4 Slips: Include the total value of taxable benefits in Box 14 (Employment income) and Box 40 (Other taxable allowances and benefits) on employees’ T4 slips.
Communicate With Employees: Inform employees about the nature and value of their taxable benefits, so they understand how these affect their taxes.
What Employees Need to Know
Review your year-end pay statement to ensure all taxable benefits are correctly included.
Ask your employer or HR department if you’re unsure why a particular benefit appears on your T4 slip.
Keep receipts or documentation for any reimbursed expenses or allowances.
Remember that taxable benefits increase your overall income, which may affect your personal tax situation.
Tips for a Hassle-Free Year-End
Use a checklist to ensure no taxable benefit is missed.
Stay informed of annual CRA updates, as thresholds and rules may change from year to year.
Consider consulting your payroll provider or a tax professional for complex benefits like stock options or housing allowances.
Submit all year-end payroll adjustments before the deadline to avoid CRA penalties.
Conclusion
Proper year-end reporting of taxable benefits is critical for both employers and employees in Canada. By staying organized and up-to-date with CRA requirements, you can ensure a smooth transition into tax season and avoid unnecessary headaches. For the latest information, always refer to the CRA’s official guide on taxable benefits.
Have questions about your specific situation? Leave a comment below or contact your payroll or tax advisor for personalized guidance.
The 2026 Canadian tax season is shaping up to offer exciting opportunities for small businesses. With recent announcements from the Canadian government—including revised capital cost rules, changes in inclusion rates, and enhanced benefit programs—it’s time to get tax-savvy. This guide will walk you through essential write-offs, incentives, and strategies to make the most of your return.
1. Small Business Deduction (SBD): Keep More of What You Earn
If your business is incorporated, qualifying as a Canadian-Controlled Private Corporation (CCPC) lets you claim the Small Business Deduction (SBD), which drastically lowers the federal tax rate on your first $500,000 of active business income. Federal rates range from ~9% to 12%, varying by province 360Lendingtaxtips.ca. Some provinces have improved their terms—for example, Nova Scotia reduced its rate from 2.5% to 1.5% and increased the small business income limit from $500,000 to $700,000 effective April 1, 2025.
2. Capital Cost Allowance (CCA) & Immediate Expensing
Traditional Depreciation (CCA)
Claim depreciation over time on capital assets like vehicles, machinery, and computers using CRA’s CCA classes Wikipedia.
New provisions reinstate immediate expensing (100% write-off in the first year) for eligible property in Classes 44, 46, and 50, acquired after April 16, 2024, and available for use before January 1, 2027
Plus, start-ups and small businesses can benefit from the Accelerated Investment Incentive (AII), allowing full first-year CCA deductions—helpful when timing capital purchases strategically.
3. Home Office & Vehicle Expenses
Home Office: If a dedicated part of your home is exclusively used for business, you can deduct a pro-rated share of rent/mortgage interest, utilities, internet, property tax, and insurance.
Vehicle: You can deduct business-use portions of fuel, maintenance, insurance, lease/depreciation, and registration—just track your mileage accurately. Tools like MileIQ can help.
4. Professional and Marketing Expenses
Professional Services: Fees for accountants, lawyers, and consultants are fully deductible—just keep clear records documenting the business purpose.
Marketing & Advertising: Digital advertising (Google, social media), website costs, and branding initiatives are all fully deductible.
5. Office Supplies, Tools & Software
Most supplies (pens, paper, ink) and software subscriptions are fully deductible. Larger equipment may fall under CCA depending on cost and category.
6. GST/HST Input Tax Credits (ITCs)
If you’re GST/HST-registered, you can claim the tax paid on eligible business purchases as Input Tax Credits (ITCs)—but only the tax portion, not the entire cost Reddit. Even if you’re under the mandatory threshold ($30,000 annual revenue), voluntarily registering can still pay off.
7. SR&ED: Research & Development Tax Credits
For businesses involved in scientific or experimental development, the SR&ED program offers significant opportunities:
Federal Investment Tax Credit (ITC): Up to 35% of the first $3 million in qualifying expenditures for CCPCs; others get 15%Wikipedia.
New Enhancements: Budget 2024 proposed raising CCPC ITC limit to $4.5 million and extended other phase-out thresholds Government of Canada. The CRA is also modernizing by enabling digital SR&ED pre-claim services and submissions via SALT (Self‑Assessment and Learning Tool)Government of Canada.
8. Meals & Entertainment
Generally, you can deduct 50% of business-related meals and entertainment, and claim 50% of the GST/HST on them as ITCs. For long-haul truck drivers, this increases to 80% Government of Canada.
9. Capital Gains & Lifetime Exemptions
Lifetime Capital Gains Exemption (LCGE): Increased to $1.25 million effective June 25, 2024 — with indexation resuming in 2026.
Capital Gains Inclusion Rate Change: A planned hike from 50% to 66 ⅔% has been canceled. The 50% inclusion rate remains in effect for all gains realized before January 1, 2026.
10. Bonus Credits & State-Specific Highlights
Mineral Exploration Tax Credit extended to 2026—good for certain industries Government of Canada.
Volunteer Tax Credits for firefighters and search/rescue volunteers were doubled to $6,000 for 2024+ Government of Canada.
Final Takeaways
Strategically time purchases to maximize CCA or immediate expensing.
Keep detailed documentation for all deductions—especially mileage, business purpose, and eligibility.
Leverage free CRA tools like SALT and liaison support to ease filings and ensure accuracy.
Review provincial updates annually, especially if incentives vary regionally.
As we move into 2025, it’s crucial for business owners in Canada to stay updated on the latest tax regulations and strategies to optimize their tax filings. Whether you’re a small business owner or managing a larger enterprise, understanding the nuances of the tax system can help you save money and avoid potential issues. Here are some essential business tax tips for 2025 to keep in mind.
Key Changes and Updates
The Canadian tax landscape is constantly evolving, and 2025 brings several important changes that businesses need to be aware of:
Corporate Tax Rates: The federal corporate tax rates have been adjusted for inflation. Make sure to review the latest rates to understand how they apply to your business income.
Small Business Deduction: The small business deduction limit has been increased, allowing more businesses to benefit from the lower tax rate on their first $500,000 of active business income.
Maximizing Deductions and Credits
To minimize your tax liability, consider taking advantage of the following deductions and credits:
Capital Cost Allowance (CCA): Ensure you’re claiming the appropriate CCA for your business assets. This allows you to deduct the cost of depreciable property over time.
Scientific Research and Experimental Development (SR&ED) Tax Credit: If your business is involved in research and development, you may be eligible for the SR&ED tax credit. This can provide significant savings on your tax bill.
Home Office Expenses: If you run your business from home, you may be eligible to claim home office expenses. Keep detailed records of your expenses throughout the year to maximize your deduction.
Efficient Record-Keeping
Good record-keeping is essential for accurate tax filings and can help you avoid potential audits. Here are some tips for maintaining efficient records:
Use Accounting Software: Invest in reliable accounting software to keep track of your income, expenses, and receipts. This will make it easier to prepare your tax return and ensure accuracy.
Keep Receipts and Invoices: Maintain organized records of all business-related receipts and invoices. This will help you substantiate your deductions and credits if needed.
Track Mileage: If you use your vehicle for business purposes, keep a detailed log of your mileage. This can be claimed as a business expense and can provide valuable deductions.
Planning for the Future
Effective tax planning involves looking ahead and making strategic decisions to optimize your tax situation. Consider the following strategies:
Incorporate Your Business: If you’re operating as a sole proprietor, consider incorporating your business. This can provide tax advantages and protect your personal assets.
Income Splitting: If you have family members involved in your business, consider income splitting to reduce your overall tax liability. This involves paying salaries or dividends to family members in lower tax brackets.
Tax-Deferred Savings Plans: Take advantage of tax-deferred savings plans such as the Registered Retirement Savings Plan (RRSP) and the Tax-Free Savings Account (TFSA) to save for the future while reducing your taxable income.
Seeking Professional Help
Navigating the complexities of the tax system can be challenging, and seeking professional help can provide valuable insights and ensure compliance. Consider working with a tax professional or accountant who specializes in business taxes to optimize your tax strategy.
Conclusion
Staying informed and proactive about your business taxes can lead to significant savings and a smoother tax season. By understanding the latest changes, maximizing deductions, and planning for the future, you can optimize your tax situation and focus on growing your business. Happy filing!
Feel free to reach out if you have any specific questions or need further assistance with your 2025 business taxes in Canada! 😊
Businesses can also contact us with technical GST/HST questions that are not answered here by calling 1-800-959-8287.In detail: zero-rating supplies of the qualifying goods and services
This measure adjusts the Excise Tax Act to temporarily zero-rate supplies of the qualifying goods and services. Zero-rated means that no GST/HST is charged when the supply is made because the tax rate is 0%.
GST/HST registrants can claim an input tax credit for the GST/HST paid or payable on expenses made to provide zero-rated supplies.
Detailed guidance for restaurants and other eating or drinking establishments
The eligibility of food and beverages during the GST/HST break also applies to food and beverages served at restaurants (and other eating establishments):
Prepared meals and food, as well as all non-alcoholic beverages and eligible alcoholic beverages qualify for GST/HST relief during the eligible period (December 14, 2024, to February 15, 2025) when they are provided at restaurants, pubs, bars, food trucks, and other establishments that serve food and/or beverages. Cannabis products that are food or beverages do not qualify for GST/HST relief.
Food delivery
When an eating establishment bills a customer directly for delivery of a prepared meal, the delivery service qualifies because it generally has the same tax status as the prepared meal
However, when a delivered prepared meal is ordered through a platform, two separate transactions occur:
The prepared meal is provided by the eating establishment to the customer
A delivery service is provided by the platform provider to the customer
The prepared meal provided by the eating establishment to the customer qualifies for GST/HST relief during the eligible period.
The delivery service provided by the platform provider to the customer does not qualify for GST/HST relief.
Orders that include both qualifying and non-qualifying items
GST/HST relief only applies to the qualifying items (prepared meals, non-alcoholic beverages and eligible alcoholic beverages).
When customers order prepared meals or eligible beverages which qualify for GST/HST relief during the eligible period, the GST/HST does not apply on these items.
However, where a customer orders alcoholic beverages which do not qualify for GST/HST relief (such as spirits and liqueurs), the GST/HST still applies on those items.
Cocktails and mixed beverages
Some beverages that are mixed at the establishment for customers (such as cocktails) may also qualify for GST/HST relief.
Mixed drinks that include only eligible beverages such as beer, malt liquor, or wine, qualify for GST/HST relief.
For example, a mimosa made of sparkling wine and orange juice, or a michelada made of beer and non-alcoholic ingredients would qualify
Mixed drinks that include an alcoholic beverage which does not qualify for GST/HST relief, such as spirits or liqueurs, would not qualify for GST/HST relief.
For example, a sangria that includes both wine and rum, or a mixed drink such as a vodka and soda, would not qualify
Tips for Prepared Meals
A mandatory tip or gratuity included as part of the bill amount to pay has the same tax status as the prepared meal. This kind of tip qualifies for GST/HST relief for the eligible period.
GST/HST does not apply to a tip or gratuity that is given freely by a customer to an employee of an eating establishment.
Catering
A catering service generally qualifies for GST/HST relief. The catering service must be for the provision, preparation and serving of food, non-alcoholic beverages or eligible alcoholic beverages to qualify.
Other services that do not qualify for GST/HST relief include (but are not limited to):
Event admission charges
Facilities hosting fees
Fees for musicians, disc jockeys or other entertainers
Chef services where food is prepared and served by a chef but the ingredients to make the meal are not provided by the chef
Make a reasonable effort to comply
Businesses who make reasonable efforts to comply with the legislation will not be the focus of our compliance actions.
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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