In Canada, items generally free from Goods and Services Tax (GST/HST) include basic groceries, prescription drugs, medical devices, feminine hygiene products, and most exports. Additionally, from December 14, 2024, to February 15, 2025, a temporary GST/HST holiday covers restaurant meals, snacks, children's clothing/toys, books, and diapers.
You can claim up to 50% of the amount of GST/HST you paid for the eligible tour package. The refund calculation is based on the number of nights of short-term accommodation in Canada included in the package.
Regardless of your citizenship, you have to pay Canadian income tax if you live and work in Canada. The U.S. bases taxation on both your residence and citizenship status.
You can claim goods of up to CAN$200 without paying any duty and taxes. You must have the goods with you when you enter Canada. Tobacco products* and alcoholic beverages are not included in this exemption. If the goods you bring in are worth more than CAN$200 in total, you cannot claim this exemption.
During the GST/HST break
From December 14, 2024, to February 15, 2025, you should not have charged the GST/HST on the qualifying goods and services listed above. Keep your records and remit and report your regular GST/HST as usual.
Key items exempted from GST:
The Australian Government's Tourist Refund Scheme (TRS) allows international travellers to claim a refund on the Goods and Services Tax (GST) and Wine Equalisation Tax (WET). The government pays this on eligible purchases you make in Australia and take offshore when you meet certain conditions.
Tourists visiting for personal reasons—like sightseeing and family visits or attending a short event—simply do not pay Canadian income tax . And there is no need to file a tax return. In parallel, no income tax applies if no earnings are made in Canada.
(You are considered an exporting tourist when you purchase goods and take them with you home, therefore becoming eligible for a refund of the VAT that you paid during the purchase.)
Canada's 90% rule helps non-residents and recent immigrants claim full federal tax credits (like the Basic Personal Amount) if 90% or more of their net worldwide income for the relevant tax year is from Canadian sources; otherwise, credits are prorated (reduced) based on their Canadian residency period, ensuring fairness for those who weren't residents all year.
Goods you bring in for commercial use or for another person do not qualify for the exemption and are subject to applicable duties and taxes. In all cases, goods you include in your 24-hour exemption (CAN$200) or 48-hour exemption (CAN$800) must be with you upon your arrival in Canada.
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Tourist tax in Toronto
In Toronto, the Harmonized Sales Tax (HST) and Municiap Accommodation Tax (MAT) apply to overnight stays. The HST is charged only on stays costing $20 or more and for stays shorter than 31 consecutive nights.
Tourists visiting Canada are generally not eligible for a refund of the GST/HST paid on purchases made in Canada. The GST/HST visitor rebate program was discontinued, and non-resident visitors cannot claim a rebate for most goods and services bought during their trip.
Along with cash and credit cards, U.S. debit cards are widely accepted in Canada. Similar to credit cards, as long as the merchant accepts your debit card's payment network, you should be able to use it. You may also be able to use your debit card to withdraw cash at ATMs in Canada. But be aware that there may be fees.
If you are a non-resident visitor to Canada, you cannot claim a rebate of the GST/HST that you paid for purchases made in Canada.
Merchandise and Gifts: All goods you bought overseas (souvenirs, clothing, electronics, artwork, etc.), whether for yourself or as gifts, must be declared. Even if you won't owe duty (because you're within the duty-free allowance), you still need to list these items on your customs declaration.
How much money do you have to declare when you travel to or from the U.S.? If you are traveling with an excess of $10,000, you must report it to a Customs and Border Protection (CBP) officer when you enter or exit the U.S. But there is no limit to the amount of money you can travel with.
If any item is worth more than the $100 gift allowance, the entire package will be dutiable.
How to get a VAT repayment. HMRC processes your repayment automatically when you submit your VAT Return. Your repayment will go direct to your bank account if you gave HMRC bank details for your repayment. Otherwise HMRC will send you a cheque (also known as a 'payable order').