GST/HST Break: New information for restaurants and for businesses in a supply chain

There are unique considerations for restaurants and businesses in a supply chain during their transition to the GST/HST break period, and the CRA is here to help.

What to do as a business in a supply chain that charges the GST/HST

• The items that would qualify for the GST/HST relief between December 14, 2024, and February 15, 2025, would apply at every stage of the supply chain, from manufacturer to wholesaler, wholesaler to retailer, and retailer to consumer.
• The GST/HST break covers all sales and imports of qualifying goods throughout the supply chain, including those by producers and distributers.

What to do as a restaurant or another eating or drinking establishment

• Prepared meals, food, all non-alcoholic beverages and eligible alcoholic beverages would qualify for GST/HST relief during the eligible period when provided at restaurants, pubs, bars, food trucks, and other establishments serving food and/or beverages.
• If an eating establishment bills a customer directly for delivery of a prepared meal, the delivery service would qualify for GST/HST relief during the eligible period.
  • However, when a delivered meal is ordered through a platform, the delivery service made by the platform provider would not qualify for GST/HST relief.
• For orders with both qualifying and non-qualifying items, the GST/HST relief would only apply to the qualifying items.
• Mixed drinks made with only eligible beverages like beer, malt liquor and wine would qualify for the GST/HST relief.
• Mixed drinks containing non-qualifying alcoholic beverages, such as spirits, would not qualify for GST/HST relief.
• A mandatory tip or gratuity included in the bill would have the same tax status as the prepared meal and would qualify for GST/HST relief during the eligible period.
• Catering services would generally qualify for the GST/HST relief, as long as they are for the provision, preparation and serving of food, non-alcoholic beverages or eligible alcoholic beverages.

For more information about how the GST/HST break would apply to restaurants and businesses in a supply chain, please visit GST/HST break – Canada.ca. Check this page regularly as we will update it as new information emerges to help individuals and businesses understand the GST/HST break.