Frequently Asked Questions
Will GST be removed from the wholesale price of qualifying goods?
Yes, qualifying goods must have GST removed whether they are being purchased retail or wholesale.
The BC Liquor Distribution Branch (LDB) has provided several updates and resources, including a list of qualifying liquor products, here.
There has been recent confusion that the LDB informed vendors it will continue to charge GST on qualifying goods. This is not true. Click here to see the most recent GST updates from the LDB.
Contact GSTHoliday@bcldb.com if you have questions for the LDB.
I was charged GST by a supplier when I shouldn't have been. What do I do now?
If you are charged GST when you shouldn't be, you should be able to get a refund. If the supplier can't refund you, you can apply for a GST rebate for the amount charged to you in error. Please note that rebates are only issued for total amounts of $2.00 or more.
You can apply electronically using Form GST189 General Application for GST Rebates and select Reason Code 1C – Amounts paid in error. This process applies across the entire supply chain, from manufacturer to wholesaler, wholesaler to retailer, and retailer to consumer.
Be sure to submit your rebate application to the CRA within two years after the day you paid or remitted the amount in error. Please note that you can send only one application per calendar month.
More details on the rebate process are available at GST/HST break - Canada.ca. Contact the CRA at 1-800-959-8287 if you have questions.
I charged a customer GST when I shouldn't have. What do I do now?
You should make an effort to refund the customer. If you are unable to refund the customer, the customer will be able to file a rebate application: GST189 (reason code 1C "amounts paid in error.")
You must remit all GST charges, including those accidentally applied to qualifying goods, to the CRA.
I've heard that the GST holiday is optional -- is this true?
No, this is not true. The GST holiday is now law.
The CRA's compliance approach will focus on willful and egregious non-compliance. Businesses who make a reasonable effort to comply, but who charge GST in error, will not be the focus of CRA compliance efforts.
Can I claim a GST credit on goods purchased prior to December 14, but sold to customers during the GST holiday?
No, you cannot claim GST credits for items purchased outside of the GST holiday period, regardless of when these products are sold to customers. Similarly, you will not be required to pay GST on items purchased inside the GST holiday period that are sold to customers after February 15, 2025.
Should I remove GST from mandatory tips/auto-gratuities?
A mandatory tip or auto-gratuity included as part of the bill has the same tax status as a prepared meal. This kind of tip qualifies for GST relief for the eligible period.
GST does not apply to a tip or gratuity that is given freely by a customer to an employee.
Are gift bags a qualifying good?
A gift basket that contains beverages and other items, if less than 90% of the total value of the basket corresponds to items that would have no GST charged on them if they were supplied separately.
Is Mead a qualifying good?
Yes. Mead is classified as wine and therefore is a qualifying good, provided it has an ABV of 22.9% or less.
Is Soju a qualifying good?
No. Soju is classified as a spirit and therefore is not a qualifying good.
Which alcohol products will be affected?
All beer, wine (excluding wines fortified more than 22.9%), sake (excluding sake fortified more than 22.9%), and ciders (excluding cider fortified more than 22.9%) are affected.
Spirit coolers up to and including 7% ABV are also affected.
The legislation defines eligible beverages as:
- (a) beer or malt liquor;
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(b) wine, or another beverage, that is produced without distillation, other than distillation to reduce the absolute ethyl alcohol content, by the alcoholic fermentation of a plant or product described by subparagraphs (a)(i) to (iii) of the definition wine in section 2 of the Excise Act, 2001;
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(c) sake;
- (d) a beverage described by paragraph (b) or (c) that is fortified not in excess of 22.9% absolute ethyl alcohol by volume;
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(e) an alcoholic beverage that is packaged, as defined in section 2 of the Excise Act, 2001, and that does not contain more than 7% of absolute ethyl alcohol by volume at the time that it is packaged; or
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(f) an alcoholic beverage that is a mixture containing one or more of the beverages described in paragraphs (a) to (e) and not containing any other alcoholic beverage.
The CRA has provided further details and examples of qualifying food and beverages here.
The LDB has provided a list of qualifying liquor products here.
Do I need to remove GST from each individual affected product in my POS system, or can I bulk remove GST from all affected products?
Your POS provider may be able to ease the administrative work of the GST removal and re-application.
You can give your POS provider access to the LDB's list of qualifying liquor products here.
How do I remit and report GST from December 14, 2024 - February 15, 2025?
Keep your records and remit and report GST as usual.
The proposed legislation would adjust the Excise Tax Act to temporarily zero-rate qualifying goods. Zero-rated means that no GST is charged when the supply is made because the tax rate is 0%.
GST registrants can claim an input tax credit for the GST paid or payable on expenses made to provide zero-rated supplies.
Click here for more information for businesses from CRA.
Do I need to remove GST from spirit coolers with more than 7% ABV?
No, GST will not be removed from spirit coolers with more than 7% ABV.
Will any cannabis products be affected?
ABLE BC discussed the inclusion of cannabis products in Bill C-78 with our federal government partners, and they have confirmed that cannabis products are not included in this bill.
Do I need to remove GST from spirits like whiskey, flavoured vodka, gin, etc?
No, GST will not be removed from spirits.
Do I need to remove GST from food or non-alcoholic beverages?
Yes, food and non-alcoholic beverages will be GST exempt from December 14, 2024-February 15, 2025.
Click here to view the full list of qualifying goods.
The CRA has provided further details and examples of qualifying goods here.
Will products other than food and alcohol be affected?
Yes, many other products are included in the full list of qualifying goods. The CRA has provided further details and examples of qualifying goods here.
If your LRS, CRS, or LP businesses sells any qualifying goods, you will need to remove GST on these products.
Do I need to re-print all of my price tags after removing GST from qualifying products?
This will depend on whether your price tags are tax in or tax out. If you include taxes in your price tags, you may decide to reprint all price tags. If you do not include taxes, posting signage at checkout will likely suffice.
Will ABLE BC create signage to explain the GST relief to my customers?
Yes, ABLE BC has signage available for free download in our online store or here:
When do you need to remove GST from qualifying goods?
You must remove GST from qualifying goods on Saturday, December 14, 2024, until Saturday, February 15, 2025.
