Recording transactions during a Sales Tax Break

On December 12, 2024, the legislation to enact the Goods and Services Tax/Harmonized Sales Tax (GST/HST) break was passed into law by the Government of Canada. The GST/HST break lasts from December 14, 2024, to February 15, 2025 only, and gives Canadians a temporary tax break on many everyday essentials.

Recording qualifying transactions in QuickBooks Online

We recommend consulting your bookkeeper or accountant for best practices on how to record transactions for your specific businesses during this period. We also suggest consulting the GST/HST break page on the Government of Canada website for important information you should know as a business owner in order to comply with this temporary change.

• In order for related transactions to appear on Line 101, any qualifying sales transactions would need to be recorded as zero-rated. 
• The same would qualify for related input credits, if any.

Note: Zero-rated sales transactions would still be reported on Line 101, which includes zero-rated sales. This is especially important if there are qualifying and non-qualifying tax holiday sales on the same invoice or sales receipt.

Keep in mind, as the the CRA guidance notes, the zero-rating only applies on qualifying sales if they are paid for and delivered or made available during the December14, 2024 - February 15, 2025 GST/HST tax holiday period.