| Taxable supplies (other than zero-rated) |
Most property and services supplies in or imported into Canada are subject to GST/HST. For everything except zero-rated or exempt supplies, you must determine which provincial or territorial rate to charge.
Example - Taxable supplies (other than zero-rated)
- sales of new housing (certain sales of new housing may be subject to a previous rate of GST/HST)
- sales and rentals of commercial real property
- sales and leases of automobiles
- car repairs
- soft drinks, candies, and potato chips
- clothing and footwear
- advertising (unless provided to a non-resident of Canada who is not registered for the GST/HST)
- taxi and limousine transportation
- legal and accounting services
- franchises
- hotel accommodation
- barber and hairstylist services
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- You charge and collect the GST/HST on the supplies that are made in Canada.
- You may be eligible to claim ITCs to recover the GST/HST paid or payable on purchases made to provide them.
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| Zero-rated supplies of goods and services |
Some supplies are zero-rated under the GST/HST. GST/HST applies to these supplies at the rate of 0%.
Example - Supply taxable at 0%
- basic groceries such as milk, bread, and vegetables
- agricultural products such as grain, raw wool, and dried tobacco leaves
- most farm livestock
- most fishery products such as fish for human consumption
- prescription drugs and drug-dispensing services
- certain medical devices such as hearing aids and artificial teeth
- feminine hygiene products (as of July 1, 2015)
- exports (most goods and services for which you charge and collect the GST/HST in Canada, are zero-rated when exported)
- many transportation services where the origin or destination is outside Canada
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- GST/HST of 0% is charged. You do not collect the GST/HST on these supplies.
- You may be eligible to claim ITCs to recover the GST/HST paid or payable on property and services acquired to provide these supplies.
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| Exempt supplies of goods and services |
Some supplies are exempt from the GST/HST. GST/HST does not apply to these supplies.
Example - Exempt supplies
- a sale of housing that was last used by an individual as a place of residence
- long-term rentals of residential accommodation (of one month or more) and residential condominium fees
- most health, medical, and dental services performed by licensed physicians or dentists for medical reasons
- child care services, where the primary purpose is to provide care and supervision to children 14 years of age or under for periods of less than 24 hours per day
- most domestic ferry services
- legal aid services
- many educational services such as:
- courses supplied by a vocational school leading to a certificate or a diploma that certifies the ability of individuals to practice or perform a trade or a vocation
- tutoring services made to an individual in a course that follows a curriculum designated by a school authority
- music lessons
- most services provided by financial institutions such as lending money or operating deposit accounts
- the issuance of insurance policies by an insurer and the arranging for the issuance of insurance policies by insurance agents
- most property and services provided by charities and public institutions
- certain property and services provided by governments, non-profit organizations, municipalities, and other public service bodies including municipal transit services and standard residential services such as water distribution
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- You do not charge or collect the GST/HST.
- You generally cannot claim ITCs to recover the GST/HST paid or payable on property and services acquired to provide these supplies.
If you are a public service body that provides exempt supplies, you may be eligible to claim a public service bodies’ rebate for the GST/HST paid or payable on expenses related to making exempt supplies whether or not they are registered for the GST/HST. For more information, see Guide RC4034, GST/HST Public Service Bodies’ Rebate.
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