GST Tax Break Items List for Restaurants
By David Gao | Posted on
There is a temporary GST/HST break on certain items from December 14, 2024, to February 15, 2025 in Canada. During the tax break, no GST or HST (whichever applies in your province or territory) will be charged on food and beverages served at restaurants and other eating establishments. Here is the GST/HST tax break item list for restaurants and other eating establishments.
Prepared meals
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.
Cocktails and mixed beverages
Mixed drinks that include only eligible beverages such as beer, malt liquor, or wine, qualify for GST/HST relief.
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.
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.
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: (1) The prepared meal is provided by the eating establishment to the customer, (2) 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.
Is prepared meal included in GST/HST tax break?
Yes, prepared meals qualifies for GST/HST relief during the eligible period.
Is tip included in GST/HST tax break?
Yes, tips qualifies for GST/HST relief during the eligible period. However, mandatory tip or gratuity do not qualify for GST/HST relief during the eligible period.
Is beer included in GST/HST tax break?
Yes, beer qualifies for GST/HST relief during the eligible period. Examples: canned, bottled beer, or pitchers of beer.
Is wine included in GST/HST tax break?
Yes, wine that are 22.9% alcohol by volume (ABV) or less qualifies for GST/HST relief during the eligible period.
Is spirit included in GST/HST tax break?
No, spirit does not qualify for GST/HST relief during the eligible period.
Is liqueur included in GST/HST tax break?
No, liqueur does not qualify for GST/HST relief during the eligible period.
Is cider included in GST/HST tax break?
Yes, cider that are 22.9% alcohol by volume (ABV) or less qualifies for GST/HST relief during the eligible period.
Is sake included in GST/HST tax break?
Yes, sake that are 22.9% alcohol by volume (ABV) or less qualifies for GST/HST relief during the eligible period.
Is soju included in GST/HST tax break?
Yes, sake that are 22.9% alcohol by volume (ABV) or less qualifies for GST/HST relief during the eligible period.
