Type of supply
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Tax status of your supply
To determine what GST/HST rate to charge, you have to know which supplies are taxable and at which rate.
Your supply may be taxable, zero-rated (taxable at 0%) or exempt.
Most property and services supplied in or imported into Canada are subject to GST/HST (taxable).
Find your supply and tax status among the examples
| Supply | Tax status |
|---|---|
| Sales of new housing (certain sales of new housing may be subject to a previous rate of GST/HST) | Taxable |
| Sales and rentals of commercial real property | Taxable |
| Sales and leases of automobiles | Taxable |
| Car repairs | Taxable |
| Soft drinks, candies and potato chips | Taxable |
| Clothing and footwear | Taxable |
| Advertising (unless provided to a non-resident of Canada who is not registered for the GST/HST) | Taxable |
| Taxi or commercial ride-sharing services | Taxable |
| Legal services | Taxable |
| Accounting services | Taxable |
| Franchises | Taxable |
| Hotel accommodation | Taxable |
| Barber and hairstylist services | Taxable |
| A sale of housing that was last used by an individual as a place of residence | Exempt |
| Long-term rentals of residential accommodation (of one month or more) and residential condominium fees | Exempt |
| Most health, medical, and dental services performed by licensed physicians or dentists for medical reasons | Exempt |
| 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 | Exempt |
| Most domestic ferry services | Exempt |
| Legal aid services | Exempt |
| Educational services like 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 | Exempt |
| Educational services like tutoring services made to an individual in a course that follows a curriculum designated by a school authority | Exempt |
| Music lessons | Exempt |
| Most services provided by financial institutions such as lending money or operating deposit accounts | Exempt |
| The issuance of insurance policies by an insurer and the arranging for the issuance of insurance policies by insurance agents | Exempt |
| Most property and services provided by charities and public institutions | Exempt |
| 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 | Exempt |
| Basic groceries such as milk, bread and vegetables | Zero-rated |
| Agricultural products such as grain, raw wool and dried tobacco leaves | Zero-rated |
| Most farm livestock | Zero-rated |
| Most fishery products such as fish for human consumption | Zero-rated |
| Prescription drugs and drug-dispensing services | Zero-rated |
| Certain medical devices such as hearing aids and artificial teeth | Zero-rated |
| Feminine hygiene products | Zero-rated |
| Exports (most goods and services for which you charge and collect the GST/HST in Canada are zero-rated when exported) | Zero-rated |
| Many transportation services where the origin or destination is outside Canada | Zero-rated |
Once you know your type of supply, you must determine which rate to charge.
How the GST/HST applies to each tax status
Use the interactive questionnaire or read the full-text version to learn about the different types of supplies and how the GST/HST applies to them.
Answer interactive questions
The result is
You do not charge or collect the GST/HST
You generally cannot claim input tax credits to recover GST/HST paid or payable.
If you are a public service body that makes 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 you are registered for the GST/HST. For more information, refer to Guide RC4034, GST/HST Public Service Bodies' Rebate.
The result is
You charge and collect the GST/HST on supplies that are made in Canada
You may be eligible to claim input tax credits to recover GST/HST paid or payable.
The result is
GST/HST of 0% is charged, which means you do not collect the GST/HST on these supplies
You may be eligible to claim input tax credits to recover GST/HST paid or payable.
Read full-text version
| Tax status | What this means | If you are a GST/HST registrant, then |
|---|---|---|
| Taxable supplies (other than zero-rated) | Most property and services supplied in or imported into Canada are subject to GST/HST. For everything except zero-rated or exempt supplies, you must determine which GST/HST rate to charge. |
|
| Zero-rated supplies | Some supplies are zero-rated under the GST/HST. This means that GST/HST applies to these supplies at the rate of 0%. |
|
| Exempt supplies | Some supplies are exempt from the GST/HST. GST/HST does not apply to these supplies. |
If you are a public service body that makes 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 you are registered for the GST/HST. For more information, refer to Guide RC4034, GST/HST Public Service Bodies' Rebate. |