On November 28, 2024, the House of Commons passed Bill C-78 Tax Break for All Canadians Act to temporarily relieve the GST from December 14, 2024 to February 15, 2025 on groceries and holiday essentials including some alcoholic beverages. Please note the legislation still requires Senate approval.
Qualifying alcoholic beverages include:
- Beer and malt beverages
- Wine, cider and sake (including fortified) that are 22.9% alcohol by volume (ABV) or less
- Spirit coolers and premixed alcoholic beverages that are 7% ABV or less
- De-alcoholized beverages
Alcoholic beverages that would not qualify include:
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- Spirits and spirit coolers with more than 7% ABV
- Alcoholic beverages (other than beer, malt beverages, wine, cider and sake) with more than 7% ABV
The legislation exempts GST on qualifying items throughout the supply chain, ensuring GST relief applies to these items regardless of whether they are being purchased retail or wholesale.
This means, the BC Liquor Distribution Branch (LDB) will be required to remove the GST from all qualifying products sold at BCLIQUOR stores and through the wholesale channels which includes LDB distribution and private distribution channels. The LDB is looking at the options available for implementation within this tight timeframe and will provide more details soon.
The LDB is currently working with the appropriate government stakeholders, reviewing the Canada Revenue Agency guidelines and making the necessary systems changes to prepare for the temporary GST holiday tax break implementation in British Columbia starting December 14, 2024.
More details will be made available once they are confirmed. Please email GSTHoliday@bcldb.com if you have any questions.
In the meantime, please review the federal announcement posted online here:
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- Department of Finance November 27 release: https://www.canada.ca/en/department-finance/news/2024/11/government-tables-legislation-to-put-more-money-in-your-pocket.html
- Bill C-78: https://www.parl.ca/legisinfo/en/bill/44-1/c-78