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)

  • 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%

  • 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

  • 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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