Type of supply

To determine what GST/HST rate to charge, you have to know which supplies are taxable and at which rate. The following table shows the different types of supplies and how the GST/HST applies to them.

Once you know your type of supply, you must determine which rate to charge.

Differences in the tax status
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. Example – Taxable supplies (other than zero-rated) 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 or commercial ride-sharing services legal and accounting services franchises hotel accommodation barber and hairstylist services	you charge and collect the GST/HST on the supplies that are made in Canada you may be eligible to claim input tax credits (ITCs) to recover GST/HST paid or payable
Zero-rated supplies	Some supplies are zero-rated under the GST/HST. This mean that GST/HST applies to these supplies at the rate of 0%. Example – Supplies taxable at 0% Example – Supplies 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 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	GST/HST of 0% is charged, which means you do not collect the GST/HST on these supplies you may be eligible to claim ITCs to recover GST/HST paid or payable
Exempt supplies	Some supplies are exempt from the GST/HST. GST/HST does not apply to these supplies. Example – Exempt 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	you do not charge or collect the GST/HST you generally cannot claim ITCs 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, see Guide RC4034, GST/HST Public Service Bodies’ Rebate.

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Date modified:: 2019-04-15

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Type of supply

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