Definitions for GST/HST

Added property that is in the possession of a person means goods or software that is a component part or is property (such as a label or a screw) that is incorporated or combined with other property. It also includes packing materials used in packing other goods, but does not include goods or software added to any property that is not held for sale by the person. With the use of a valid Export Distribution Centre certificate, a registrant is entitled to import, or acquire in Canada, property for use or supply as "added property" without having to pay the GST/HST.

Alcoholic beverage, for the purposes of the First Nations tax, generally means:

• beer, ale, stout, porter, or malt liquor containing more than 0.5% alcohol by volume
• wine containing more than 0.5% alcohol by volume
• any beverage containing more than 0.5% alcohol by volume that is obtained from the distillation of grains, fruit, or other agricultural products or from the distillation of beer or wine
• any beverage that is a combination of the above beverages, which is suitable for human consumption, and that contains more than 0.5% alcohol by volume

Generally, when we refer to alcohol, we mean ethyl alcohol.

All-inclusive price generally means a single price for all property and services sold together in a package. However, in the tourism industry, sometimes prices for certain property or services that are included in a tour package are listed on an invoice for information purposes. The Canada Revenue Agency accepts that such packages are sold for an all-inclusive price.

Allowance means any payment, periodic or otherwise, which a member of a partnership receives from the partnership, in addition to their partnership income, without having to account for its use. A reasonable allowance is not included in the partnership member's income for income tax purposes. For example, an allowance for a motor vehicle is not usually included in the partnership member's income when it is based solely on a reasonable per-kilometre rate.

Ancillary supply, for the purposes of the public service bodies' rebate, means an exempt supply of property or a service for which an amount (other than a nominal amount) is paid or payable to the supplier as medical funding. In addition, to be an ancillary supply, one of the following conditions must be met:

• The payment is for a service of organizing or coordinating the making of facility supplies or home medical supplies
• The payment is for the part of property or a service (other than a financial service) used to make a facility supply, however, the supply cannot be a home medical supply or a facility supply itself

Examples of supplies that could be ancillary supplies are laboratory and diagnostic services, centralized laundry services, and in-patient meal services.

Arm's length generally refers to a relationship or a transaction between persons who act in their separate interests. An arm's length transaction is generally a transaction that reflects ordinary commercial dealings between parties acting in their separate interests.

"Related persons" are not considered to deal with each other at arm's length. Related persons include individuals connected by blood relationship, marriage, common-law partnership, legal adoption or adoption in fact. A corporation and another person or two corporations may also be related persons. In addition, for GST/HST purposes, a member of a partnership is related to the partnership.

"Unrelated persons" may not be dealing with each other at arm's length at a particular time. Each case will depend upon its own facts. The following factors are useful criteria that will be considered in determining whether parties are not dealing at arm's length:

• whether there is a common mind that directs the bargaining for both parties to a transaction
• whether the parties to a transaction act in concert without separate interests; "acting in concert" means, for example, that parties act with considerable interdependence on a transaction of common interest
• whether there is de facto control (that is, effective without legal control) of one party by the other because of, for example, advantage, authority, or influence

For more information, see Income Tax Folio S1‑F5‑C1, Related persons and dealing at arm's length.

Associated person, for GST/HST purposes, means a person that is generally associated with another person where one controls the other. Associated persons (referred to generally as "associates") may include:

• two or more corporations
• an individual and a corporation
• a person and a partnership or trust
• two persons, if they are associated with the same third person

Band-empowered entity means a corporation, board, council, association, society, or other organization that is owned or controlled by a band, a tribal council, or a group of bands other than a tribal council. This policy is applicable to those band-empowered entities that are situated on a reserve. A band-empowered entity is considered to be situated on a reserve when the entity maintains a presence on a reserve.

An entity is considered to be owned by a band, a tribal council, or a group of bands other than a tribal council if either of the following conditions is met:

• The band, tribal council, or group of bands owns all or substantially all (90%) of the shares or holds all or substantially all of the memberships of the entity
• The band, tribal council, or group of bands holds title to the assets of the entity or controls its disposition, such that in the event of wind up or liquidation, these assets are vested in the band, tribal council or group of bands

An entity is considered to be controlled by a band, tribal council, or group of bands other than a tribal council if all of the following conditions are met:

• The band, tribal council, group of bands, or individual members of the band, tribal council, or group of bands appoint or elect a majority of the members of the governing body of the entity (for example, directors)
• The entity is required by legislation, by-laws, or an operating agreement, to submit to the band, tribal council, or group of bands, its operating budget and where applicable, its capital budget for review and approval

Band management activities means activities or programs undertaken by a band or band-empowered entity that are not commercial activities for which they would otherwise be entitled to an input tax credit (ITC). In determining whether the acquisition of a supply is for band management, the output of the activity or program will be the determining factor, as opposed to the objectives of the activity or program. For example, a band's objective of a program may be to provide employment and training to band members. To achieve this objective, the band may form a commercial enterprise which will provide on-the-job training and also create employment. Although the band's objective is to train persons, the output is a commercial activity for which there is an entitlement to ITCs. As a result, supplies acquired for use in this band program are not considered to have been acquired for use in band management activities unless the band is not required to be registered and thus not eligible to ITCs (for example, a small supplier).

Basic service means a type of service that could be performed in a customs bonded warehouse. The service does not have to actually be performed in a customs bonded warehouse, but it should be able to be performed on the goods in their present stage of processing, and in a customs bonded warehouse. Basic services include:

• disassembling or reassembling the goods if they have been assembled or disassembled for packing, handling, or transport
• displaying, inspecting, labelling, packing, storing, or testing the goods
• removing a sample of the goods for soliciting orders
• cleaning, diluting, normal maintenance and servicing, preserving, separating defective goods from prime quality goods, sorting or grading, trimming, filing, slitting, cutting, or complying with any applicable law of Canada or a province or territory, as long as the characteristics of the goods are not materially altered

Basic tax content of a property generally means the amount of GST/HST that was payable for the last acquisition of the property, and for any improvements made to the property since that last acquisition, less any amounts that were, or would have been, able to be recovered (for example, by rebate or remission, but not by input tax credits (ITC)). The calculation for the basic tax content takes into account any depreciation in the value of the property since it was last acquired (for example, when it was purchased or when it was last deemed to have been purchased, whichever occurred more recently).

Registrants may have to calculate the basic tax content of a property if they increase or decrease their use of the property in their commercial activities. Non‐registrants may have to calculate the basic tax content of real property if they file a rebate under section 257 of the Excise Tax Act.

For more information on how to calculate basic tax content, see Guide RC4022, General Information for GST/HST Registrants.

Builder, for the purposes of GST/HST rebates, generally includes a person who is in the business of constructing or substantially renovating houses for sale. The house may be on land owned or leased by that builder. A builder may also include:

• a manufacturer or vendor of a new mobile home or floating home
• a person who buys an unoccupied new house for resale
• a person who acquires an interest in a house while the house is under construction or substantial renovation, and completes or engages another person to complete the construction or substantial renovation
• a person who has converted a non-residential property into a house without substantially renovating the property

An individual is not a builder unless they acquire, build, or substantially renovate housing, or hire someone else to build or substantially renovate housing, in the course of a business or an adventure or concern in the nature of trade of the individual. For example, an individual who buys, builds, or substantially renovates a house to use as their primary place of residence is generally not a builder of that house for GST/HST purposes.

A person hired to provide construction services on land that is leased or owned by someone else, and who does not have an interest in that land, is not generally considered to be a builder. For example, a contractor hired by an owner or a lessee of land to build a new house on the land or to substantially renovate an existing house on the land is not considered to be a builder of the house.

Business includes a profession, calling, trade, manufacture or undertaking of any kind whatsoever, whether the activity or undertaking is engaged in for profit. It also includes any activity done on a regular or continuous basis that involves the supply of property by way of lease, licence or similar arrangement, but does not include an office or employment.

Calendar quarter means a period of three months beginning on the first day of January, April, July or October in each calendar year.

Calendar year means a year that begins on January 1 and ends on December 31.

Camping accommodation means a campsite at a campground or recreational trailer park in Canada that is rented continuously as a place of lodging for periods of less than one month to the same individual. It includes water, electricity, and waste disposal services if provided with the campsite and accessed by an outlet or hookup at the campsite.

Canadian partnership means a partnership of which each member is a corporation or a partnership and is resident in Canada.

Canadian rights for intangible personal property means the part of the property that can be used in Canada.

Capital asset generally means property that is or would be capital property under the Income Tax Act and includes property that, before January 1, 2017, was or would have been eligible capital property for income tax purposes.

Capital personal property generally means:

• any depreciable personal property that is or would be eligible for a capital cost allowance deduction for income tax purposes
• any personal property, other than depreciable property, the sale of which would result in a capital gain or loss for income tax purposes

For GST/HST purposes, capital personal property does not include property in Classes 12, 14, 14.1, or 44 of Schedule II to the Income Tax Regulations.

Capital property, in respect of a person, generally means:

• any depreciable property that is or would be eligible for a capital cost allowance deduction for income tax purposes
• any property, other than depreciable property, the sale of which would result in a capital gain or loss for income tax purposes

For GST/HST purposes, capital property does not include property in Classes 12, 14, 14.1, or 44 of Schedule II to the Income Tax Regulations.

Carrier means a person who supplies freight transportation services, whether that person actually performs the services or not. A person needs only to accept responsibility as the supplier of the freight transportation service to be considered the carrier.

Certified amount, for the purposes of specially equipped vehicles for persons with disabilities, means the part of the purchase price (excluding any GST/HST and provincial tax) that the supplier has certified as being reasonably attributable to special features that have been incorporated into, or adaptations that have been made to, the vehicle for the purpose of its use by or in transporting an individual using a wheelchair, or to equip the vehicle with an auxiliary driving control that allows an individual with a disability to operate it.

Charity means a registered charity  or registered Canadian amateur athletic association for income tax purposes, but does not include a public institution. A charity can issue official donation receipts for income tax purposes.

For the definition of charity for the purposes of the public service bodies' rebate, see Guide RC4034, GST/HST Public Service Bodies' Rebate.

Claim period of a person at any time means:

• where the person is at that time a registrant, the reporting period of the person that includes that time
• in any other case, the period that includes that time and consists of either of the following:
  • the first and second fiscal quarters in a fiscal year of the person
  • the third and fourth fiscal quarters in a fiscal year of the person

Closely related Canadian partnerships – A particular Canadian partnership and a second Canadian partnership are closely related if all or substantially all of the interest in the second partnership is held by any of the following:

• the particular partnership
• a corporation, or a third Canadian partnership, that is a member of a qualifying group of which the particular partnership is a member
• any combination of corporations or partnerships referred to above

In addition, a particular Canadian partnership and a second Canadian partnership are closely related if the particular partnership meets either of the following conditions:

• It holds qualifying voting control in respect of a corporation that is a member of a qualifying group of which the second partnership is a member and it owns at least 90% of the value and number of the issues and outstanding shares, having full voting rights under all circumstances, of the capital stock of the corporation
• It holds all or substantially all of the interest in a third Canadian partnership that is a member of a qualifying group of which the second partnership is a member

Closely related Canadian partnerships and corporations – A particular Canadian partnership and a particular corporation are closely related if any of the following applies:

• qualifying voting control in respect of the particular corporation is held by, and at least 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of the particular corporation are owned by, any of the following:
  • the particular partnership
  • a second corporation, or a second Canadian partnership, that is a member of a qualifying group of which the particular partnership is a member
  • any combination of corporations or partnerships referred to above
• qualifying voting control in respect of a second corporation is held by, and at least 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of the second corporation that is a member of a qualifying group of which the particular partnership is a member are owned by, the particular corporation
• qualifying voting control in respect of a second corporation is held by, and at least 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of the second corporation that is a member of a qualifying group of which the particular corporation is a member are owned by, the particular partnership
• all or substantially all of the interest in the particular partnership is held by any of the following:
  • the particular corporation
  • a second corporation, or a second Canadian partnership, that is a member of a qualifying group of which the particular corporation is a member
  • any combination of corporations or partnerships referred to above
• all or substantially all of the interest in a second Canadian partnership, that is a member of a qualifying group of which the particular partnership is a member, is held by the particular corporation
• all or substantially all of the interest in a second Canadian partnership, that is a member of a qualifying group of which the particular corporation is a member, is held by the particular partnership

Closely related corporations – A particular corporation and a second corporation are closely related if, qualifying voting control in respect of the second corporation is held by, and at least 90% of the value and number of the issued and outstanding shares (having full voting rights under all circumstances) of the capital stock of the second corporation are owned by, any of the following:

• the particular corporation
• a qualifying subsidiary of the particular corporation
• a third corporation of which the particular corporation is a qualifying subsidiary
• a qualifying subsidiary of a third corporation of which the particular corporation is a qualifying subsidiary
• any combination of corporations or subsidiaries referred to above

If two corporations are closely related to the same third corporation, they are closely related to each other for GST/HST purposes. For the purposes of this definition, an investment fund that is a member of a mutual insurance group is deemed to be a corporation.

Commercial activity means any business or adventure or concern in the nature of trade carried on by a person, but does not include:

• the making of exempt supplies
• any business or adventure or concern in the nature of trade carried on without a reasonable expectation of profit by an individual, a personal trust, or a partnership where all of the members are individuals

Commercial activity also includes a supply of real property, other than an exempt supply, made by any person, whether or not there is a reasonable expectation of profit, and anything done in the course of making the supply or in connection with the making of the supply.

Commercial service performed on goods generally means any service performed on the goods, other than:

• a service of shipping the goods when a carrier provides the shipping
• a financial service

Computer-related service means:

• a technical support service that is provided by means of telecommunications and relates to the operation or use of computer hardware or software
• a service involving the electronic storage of information and computer-to-computer transfer of information

Consideration includes any amount that is payable for a supply by operation of law.

Consignee means a person to whom the goods are to be delivered.

Constructive importer means the person to whom a specified supply of goods is made outside Canada and who does not provide the goods outside Canada before their release under the Customs Act.

Consumer means a particular individual who acquires or imports property or services for personal consumption, use, or enjoyment or the personal consumption, use, or enjoyment by another individual at the particular individual's expense. It does not include individuals who acquire or import property or services for their commercial activity or to make an exempt supply.

Continuous freight movement means the transportation of goods by one or more carriers to a destination specified by the shipper of the goods, where all freight transportation services supplied by the carriers are supplied due to instructions given by the shipper of the goods.

Continuous inbound freight movement – The supply of a freight transportation service from one place in Canada to another place in Canada is zero-rated when the service is part of a continuous freight movement that originates outside Canada and has a destination in Canada. The carrier responsible for the domestic service must keep documents proving that the domestic service is part of a continuous inbound freight movement.

Continuous journey of an individual or a group of individuals means the set of all passenger transportation services provided to the individual or group for which a single ticket or voucher for all of the services is issued. A continuous journey also exists where two or more tickets or vouchers are issued for two or more legs of a single journey of the individual or group on which there is no stopover between any of the legs of the journey for which separate tickets or vouchers are issued, and all the tickets or vouchers are issued by the same supplier or by two or more suppliers through one agent acting on behalf of all the suppliers, provided that either:

• all such tickets are supplied at the same time and evidence satisfactory to the Minister is maintained by the supplier or agent that there is no stopover between any of the legs of the journey for which separate tickets or vouchers are issued
• the tickets or vouchers are issued at different times and evidence satisfactory to the Minister is submitted by the supplier or agent that there is no stopover between any of the legs of the journey for which separate tickets or vouchers are issued

Continuous outbound freight movement means the transportation of goods by one or more carriers from a place in Canada to a place outside Canada, or to another place in Canada from which the goods are to be exported. After the shipper transfers possession of the goods to a carrier, and before the goods are exported, the goods (other than natural gas in certain circumstances) cannot be further processed, transformed, or altered in Canada, except to the extent necessary to transport the goods.

Convention means a formal meeting or assembly that is not open to the general public. However, a convention does not include a meeting or assembly of which the principal purpose is to:

• provide any type of amusement, entertainment, or recreation
• conduct contests or games of chance
• conduct business of the convenor or attendees either in the course of a trade show that is open to the general public or other than in the course of a trade show

Convention facility means any real property that is rented by the sponsor or organizer of a convention for use exclusively as the site for the convention.

Conversion, for the purposes of the new housing rebates, generally refers to the situation where the use of real property is changed from non‐residential use to use as housing. This change is considered to be a substantial renovation of the housing even if the extent of the work, if any, would not normally meet the requirements of a substantial renovation.

For example, a conversion generally happens where a commercial building starts to be used as a residential complex and is the primary place of residence of an individual.

In most cases, the builder of the converted real property is considered to have sold and repurchased the housing and they have to remit the GST/HST calculated on the fair market value of the housing. Generally, this does not apply to individuals who convert real property exclusively for use as a place of residence for themselves, for a relation or for their former spouse or common‐law partner.

Cooperative housing corporation (co-op) means a corporation established to provide a residential unit to its members by way of lease, licence, or similar arrangement for occupancy as a place of residence. A co-op must operate at or near cost, at least 90% of the co-op's members must be individuals or other co-ops who hold at least 90% of the co-op's shares, and none of the co-op's members (except for other co-ops) can have more than one vote in the affairs of the co-op.

Coupon includes a voucher, receipt, ticket or other device that can be redeemed for a product or service or can be used to buy a product or service, but does not include a gift certificate or a barter unit.

Courier means a commercial carrier that is engaged in scheduled international transportation of shipments of goods other than goods imported by mail.

Customer's goods means another person's goods that you import or take possession of in Canada and for which you provide a service or process with added property.

Designated charity means a charity that has been designated by the Minister of National Revenue to have certain exempt services it provides to registrants made taxable. To qualify for this designation, a charity must meet both of the following conditions:

• One of the main purposes of the charity is to provide employment or employment-related assistance to individuals with disabilities
• The charity must supply, on a regular basis, certain services that are performed, in whole or in part, by individuals with disabilities

Designated municipal property means property of a person who is, at any time, designated to be a municipality for the purpose of claiming the municipal rebate. Generally, it is property, or an improvement to it, that the designated municipality intended to consume, use, or supply more than 10% in the course of activities specified in its designation, and an amount for the property or improvement to it has been included in the calculation of non-creditable tax charged. Once property qualifies as designated municipal property, it is treated as such for as long as it is held by the designated municipality.

Designated municipality means a person designated by the Minister of National Revenue to be a municipality, but only in respect of activities specified in the designation that involve the making of supplies (other than taxable supplies) by the person of municipal services.

Destination relating to a continuous freight movement of goods means the place specified by the shipper (usually on the bill of lading or other shipping documents) where possession of the goods is transferred to the person to whom the goods are consigned or addressed by the shipper.

Direct input means property or a service other than:

• an excluded input
• an exclusive input
• a non-attributable input

Generally, a direct input of a person is property or a service that is neither capital property nor an improvement to capital property, that can be attributed in whole or in part to the making of a particular supply or supplies, and that is acquired, imported or brought into a participating province, or consumed or used, both for the purpose of making taxable supplies for consideration and for purposes other than making taxable supplies for consideration.

Distribution has the meaning assigned by subsection 55(1) of the Income Tax Act (ITA). For the purposes of section 55 of the ITA, a distribution means the direct or indirect transfer of property of a corporation (referred to in section 55 as a "distributing corporation") to one or more of its corporate shareholders (referred to in section 55 as a "transferee corporation") such that each transferee corporation that receives property on the distribution receives its pro rata share of each type of property owned by the distributing corporation immediately before the distribution.

Domestic inventory of a person means goods that the person acquires in Canada, or acquires outside Canada and imports, for the purpose of selling the property separately for consideration in the ordinary course of a business carried on by the person.

Duplex means a building that contains two residential units under one legal title (separate legal title does not exist for the individual units). This includes a single-family house that has a separate apartment for rent. 

For the purposes of the GST/HST new housing rebate, a condominium is not a duplex. For the purposes of the GST/HST new housing rebate and the GST/HST new residential rental property rebate, a duplex is a single unit residential complex.

Election means a way for businesses and organizations to choose various options that may make it easier to comply with the GST/HST. Each election has its own eligibility criteria.

Eligible activities, for the purposes of the public service bodies' rebate, means the making of facility supplies, ancillary supplies, or home medical supplies, or operating a qualifying facility to make facility supplies.

Eligible capital property generally means property that does not physically exist but that gives you a lasting economic benefit. Some examples are goodwill, or franchises, concessions, or licenses for an unlimited period. As of January 1, 2017, see the definition of capital asset instead. The term capital assets includes property that would have been considered eligible capital property or capital property prior to that date.

Emission allowance means an allowance, credit or similar instrument (other than a prescribed allowance, credit or instrument) that:

• is issued or created by, or on behalf of any of the following:
  • a government, a government of a foreign country, a government of a political subdivision of a country, a supranational organization or an international organization (each of which is, in this definition, referred to as a "regulator")
  • a board, commission or other body established by a regulator
  • an agency of a regulator
• can be used to satisfy a requirement under either of the following:
  • a scheme or arrangement implemented by, or on behalf of, a regulator to regulate greenhouse gas emissions
  • a prescribed scheme or arrangement
• represents a specific quantity of greenhouse gas emissions expressed as carbon dioxide equivalent

Emission allowance also includes a prescribed property.

Established community generally means a body of people who reside in the same locality and who are permanently settled in that location. A location will not be considered an established community if it lacks essential services at the location (for example, a basic food store, a basic clothing store with merchandise in stock [not a mail-order outlet], access to housing, certain medical assistance, and certain educational facilities), or if such services are not available within a reasonable commuting distance.

Excluded input of a person means any of the following:

• property that is for use by the person as capital property
• property or a service that is acquired, imported, or brought into a participating province by the person for use as an improvement to capital property of the person

Exclusive, in respect of the consumption, use, or supply of property or a service, generally means:

• for financial institutions, 100%
• in any other case, 90% or more

Exclusive input of a person means property or a service (other than an excluded input) that the person acquired, imported, or brought into a participating province for consumption or use for either of the following:

• directly and exclusively for the purpose of making taxable supplies for consideration
• directly and exclusively for purposes other than making taxable supplies for consideration

Exempt supplies means supplies of property and services that are not subject to the GST/HST. GST/HST registrants generally cannot claim input tax credits to recover the GST/HST paid or payable on property and services acquired to make exempt supplies.

Exhibitor means a person who rents exhibition space exclusively for use as a site for the promotion at a convention of the property or services provided by the exhibitor or its business.

Export revenue means the total revenue from:

• domestic inventory you sell outside Canada
• zero-rated exports
• sales of added property you acquired for use in processing property for export
• sales of services of processing, storing, or distributing goods of other persons, or all products from processing, where the goods are exported after the service is completed

Export revenue does not include revenue from the sales of:

• fuel you sell to registered international carriers for the transportation of people or goods by ship, aircraft, or railway
• excisable goods, such as alcohol or tobacco, when the purchaser exports them in bond
• goods from duty-free shops you sell to individuals for export
• a jig, die, mould, tool or fixture (or an interest in one) to a non-registered non-resident when it will be used to manufacture or produce goods for the non-resident
• a continuous transmission commodity transported by pipeline or power line, such as oil, natural gas or electricity, that you sell to a non-registered person who exchanges the good with a registrant in Canada for an identical good that is not in Canada

Export revenue percentage means the percentage obtained by dividing the total export revenue by the specified total revenue.

External supplier means a charity, a public institution, or a qualifying non-profit organization (other than a hospital authority or a facility operator), that makes ancillary supplies, facility supplies, or home medical supplies.

Facility operator means a charity, a public institution, or a qualifying non-profit organization (other than a hospital authority), that operates a qualifying facility.

Facility supply, for the purposes of the public service bodies' rebate, means an exempt supply of property that is made available, or a service that is rendered to a patient, at a public hospital or a qualifying facility. The property or service must be provided as part of a medically necessary health care process for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care and a physician or a midwife must direct or supervise the health care process. However, if no physician is available locally, a nurse practitioner can direct or supervise the process.

In addition, in the case of chronic care, if the patient must stay overnight at the public hospital or qualifying facility, both of the following conditions must be met:

• A registered nurse must be at the public hospital or qualifying facility at all times and a physician (or in the absence of a local physician, a nurse practitioner) must be available at all times
• The patient must be subject to medical management and for more than 10% of each day, or part of the day, that the patient is at the hospital or qualifying facility, the patient must receive therapeutic health care services, including registered nursing care

If the supplier does not operate the public hospital or qualifying facility, medical funding (other than a nominal amount) must be paid or payable to the supplier.

Fair market value generally means the highest price, expressed in dollars, that property or services would bring in an open and unrestricted market, between a willing buyer and a willing seller who are both knowledgeable, informed, and prudent, and who are acting independently of each other. Fair market value does not include the GST/HST payable on the fair market value of the property. For sales of real property, fair market value does not include any provincial land transfer taxes payable on the sale.

Final recipient, for a computer-related service or access to the Internet, means a person who is the recipient of a supply of the service or access and who acquires it otherwise than for the purpose of supplying it to another person.

Financial institution includes a person that is a listed financial institution and a person (referred to as a de minimis financial institution) whose income from certain financial services exceeds specific thresholds. For more information, see GST/HST Memorandum 17-6, Definition of "Listed Financial Institution" and GST/HST Memorandum 17-7, De Minimis Financial Institutions.

Finished inventory means goods that are in the state in which you will sell or use as added property in the course of a business.

First Nations Goods and Services Tax (FNGST) is a 5% tax on taxable supplies of property and services made on certain First Nations lands. This tax applies when a band council or other governing body of a First Nation passes its own law imposing FNGST. The Canada Revenue Agency administers FNGST on behalf of the First Nations.

First Nations Tax (FNT) is a tax on the sale of listed products made on some First Nations reserves. Some band councils have passed bylaws that impose FNT on listed products. A listed product refers to alcoholic beverages, fuel, and tobacco products that are specifically mentioned in the band bylaw.

Fiscal year means the tax year of the person, or where a person has elected to change their fiscal year, the period that the person elected to be their fiscal year. Where the person is a selected listed financial institution that is either an investment plan or a segregated fund of an insurer, it generally means a calendar year.

Floating home means a structure that is made up of a floating platform and a building that is permanently affixed to the floating platform and that is designed to be occupied as a place of residence for individuals. A floating home does not include any freestanding appliances or furniture sold with the structure, and it cannot be readily adapted for self‑propulsion (it is not a house‑boat or pleasure craft).

Foreign convention means a convention held in Canada where both of the following conditions are met:

• At the time the sponsor of the convention determines the amount to be charged for the admissions, it is reasonably expected that at least 75% of the admissions will be provided to non-residents of Canada
• The sponsor of the convention is an organization whose head office is situated outside Canada or, if the organization has no head office, the member or majority of members having management and control of the organization is or are non-resident

Freight transportation service means a service of transporting goods, and includes mail delivery and courier services. It also includes incidental property and services that are part of or incidental to a freight transportation service, such as warehouse, packing, and loading services, where they are supplied by the carrier who supplies the freight transportation service to the recipient of the freight transportation service, whether or not there is a separate charge. A freight transportation service does not include the service provided by the supplier of a passenger transportation service of transporting an individual's baggage as part of the passenger transportation service.

Fuel, for the purposes of the First Nations Tax, means:

• diesel fuel, including any fuel oil that is suitable for use in internal combustion engines of the compression-ignition type, other than fuel oil that is intended for and is actually used as heating oil
• gasoline type fuels for use in internal combustion engines
• propane gas

Goodwill, in accounting terms, means the excess of the purchase price of a business over the fair market value of the net assets of the business.

Government means the federal, provincial, or territorial levels of government.

Government funding, for the purposes of the public service bodies' rebate, means an amount of money (including a forgivable loan) that is easily identifiable and is paid by a grantor:

• to support or promote the non-profit organization's (NPO) objectives but not to pay for goods or services supplied by the NPO to the grantor
• for an exempt supply of property or services made by the NPO if the property and services are not for the use or consumption of the grantor or persons related to the grantor (for example, government funding of a local health unit to supply medical services to the public)

Government funding can be paid directly to the NPO by a grantor or through another organization called an intermediary. For example, a national organization that receives government funding from a grantor can allocate government funding to its provincial affiliates, and in turn, the provincial affiliates can redistribute the funds to their regional clubs. Funding paid directly to the NPO by an intermediary would be government funding when all of the following conditions are met:

• The intermediary received the amounts from a grantor or from another organization that received the amounts directly from a grantor
• The amounts pass through a maximum of two intermediaries
• The amounts are clearly identified as government funding in the NPO's financial statements
• The intermediary that paid the amount to the NPO fills out Form GST322, Certificate of Government Funding, to confirm that the amounts are government funding
• The amounts would be considered government funding if they were paid by a grantor directly to the NPO for the same purpose as they were paid to the NPO by the intermediary
• If the amounts are paid to the NPO for an exempt supply of property or services, the property and services are not for the use or consumption of the grantor, the intermediary, or persons related to the grantor or the intermediary

Government funding does not include:

• indirect or non-financial forms of assistance
• low-interest loans and loan guarantees
• property or services supplied at a subsidized price
• a refund, rebate or remission of, or credit in respect of, taxes, duties, or fees imposed under any statute

Grandparented housing (for Ontario and Prince Edward Island only) – Generally, the sale of a house may be grandparented (that is, not subject to the provincial part of the HST, or not subject to a new rate of the provincial part of the HST) if the written agreement of purchase and sale for the house is entered into on or before:

• in the case where a province harmonizes its PST with the GST, the day that the province announces the date that the harmonization will take effect, and if both ownership and possession of the house transfers to the purchaser under the agreement on or after the effective date of the harmonization
• in the case where a participating province changes the rate of the provincial part of the HST, the day that the participating province announces the date that the HST rate change will take effect, and if both ownership and possession of the house transfers to the purchaser under the agreement on or after the effective date of the HST rate change

For more information, see GST/HST Info Sheet GI-118, Builders and GST/HST NETFILE.

Grantor means:

• the federal government, provincial governments or municipalities, but does not include a corporation, all or substantially all (90% or more) of whose activities are commercial activities or the supply of financial services or any combination of the two
• a corporation that is controlled by a government or by a municipality and one of its main purposes is to fund charitable or non-profit activities
• a trust, board, commission, or other body that is established by a government, municipality, or corporation described in the previous bullet, and one of its main purposes is to fund charitable or non-profit activities
• an Indian band

GST and HST – The goods and services tax (GST) is a tax that you pay on most goods and services sold or provided in Canada. In New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island, the GST has been blended with the provincial sales tax and is called the harmonized sales tax (HST).

For more information, see GST/HST for businesses.

Home medical supply, for the purposes of the public service bodies' rebate, means an exempt supply of property or a service (other than a facility supply or a prescribed supply) that is made as part of a medically necessary process of health care for an individual to maintain health, prevent disease, diagnose or treat an injury, illness or disability, or provide palliative health care. The property is made available or the service is rendered to the individual in their home or lodging. Medical funding (other than a nominal amount) must be paid or payable to the supplier for the supply to be considered a home medical supply.

The supply must also meet all of the following conditions:

• The property or service is not provided at a public hospital or a qualifying facility
• A physician has confirmed that the health care process can take place in the individual's home or lodging
• A person responsible for coordinating the health care process has authorized that the property be made available or service be rendered to the individual in their home or lodging. The person responsible could be, for example, a nurse acting as case manager for a patient receiving various health care services in their home after treatment in a hospital for an injury
• It is reasonable to expect that the person coordinating the health care process is consulting with or following instructions given by a physician. For example, this would include a nurse acting as case manager who consults with a physician about changes in a patient's treatment after discharge from the hospital
• Meals, accommodation, ordinary household duties, assistance with activities of daily living, and social, recreational, and other related services make up less than 10% of the property and services included in the main supply to the individual

Hospital authority means an organization that operates a public hospital and that is designated by the Minister of National Revenue as a hospital authority for GST/HST purposes.

House

Import means import into Canada.

Improvement to capital property generally means any property or service acquired or imported to improve the capital property when the amount paid or payable for the property or service is included in the capital property's adjusted cost base for income tax purposes.

Incentive house or incentive travel company means a business that assembles some or all of the elements of an incentive trip by buying them from travel providers (for example, airline companies and hotels) and offering them for sale to another business. The incentive house bills the client for these costs along with its service charge. In turn, the client offers the incentive trip to its employees or sales agents. In some cases, an incentive house may qualify as an organizer of a convention.

Incentive travel or incentive trip means a trip that a business offers as an award to recognize or reward the productivity of its employees or sales agents. It may include business meetings, seminars, or conventions, as long as the participants are all from the same organization.

Indian means a person who is registered under the Indian Act. An Indian does not have to live or maintain a residence on a reserve. Indigenous Services Canada may issue a status card or a temporary confirmation of registration document to such a person.

Indian band, for GST/HST purposes, includes both a band council and a tribal council. The band council is the primary unit of an Indigenous government. A tribal council is another level of Indigenous government. It is a grouping of bands with a common interest that have joined together to provide advisory or program services for two or more bands. A tribal council's board of directors is made up of members of the band councils.

In-house planner means a member or employee of a business who organizes a business meeting, incentive trip, or convention for the business. The business cannot be a travel provider. However, it may buy services directly from travel providers, or buy all or part of a tour package from an incentive house or travel organizer. An in-house planner can be a sponsor of a convention if they organize an event that qualifies as a convention.

Input tax credit (ITC) means a credit that GST/HST registrants can claim to recover the GST/HST paid or payable for property or services they acquired, imported into Canada, or brought into a participating province for use, consumption, or supply in the course of their commercial activities.

Insurer generally means a person who is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an insurance business or under the laws of another jurisdiction to carry on in that jurisdiction an insurance business.

Intangible personal property generally means a right rather than a physical object. It includes such things as contractual rights, options, shares in the common stock of a corporation, the right to recover a debt, intellectual property (such as inventions, patents, trade secrets, trademarks, trade names, copyrights, and industrial designs), rights in relation to goods that are not in the possession of a person, and other rights that may be enforceable by the courts.

International flight means any flight (other than a flight originating and terminating in Canada) of an aircraft that is operated by a person in the course of a business of supplying passenger transportation services.

International voyage means any voyage (other than a voyage originating and terminating in Canada) of a vessel that is operated by a person in the course of a business of supplying passenger transportation services.

Joint venture means an arrangement where two or more persons (participants) work together in a limited and defined business undertaking. Ordinarily, all participants of the joint venture contribute assets, share risks, and have mutual liability.

A joint venture agreement is not a continuing relationship between participants. For example, the venture may be for one specific business project. Once the project is completed, the joint venture ceases to exist. Generally, participants in a joint venture name one participant to be the "joint venture operator". This person accounts for the day-to-day operations of the joint venture. The business number (BN) of the operator is used. The operator can add GST/HST and payroll accounts to their BN if they want to account for the joint venture activities separately from other activities.

Leg of a journey on a conveyance means a part of the journey that begins where passengers embark or disembark the conveyance or where it is stopped to allow for its servicing or refuelling and ends where it is next stopped for any of those purposes.

Legal aid plan means a legal aid plan that is administered under the authority of a provincial government.

Legion entity means the Dominion Command or any provincial command or branch of the Royal Canadian Legion.

Listed financial institution includes:

• a bank
• a corporation that is authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee
• a person whose principal business is as a trader or dealer in, or as a broker or salesperson of, financial instruments or money
• a credit union
• an insurer
• a segregated fund of an insurer
• a person whose principal business is the lending of money or the purchasing of debt securities or a combination of these activities
• an investment plan
• a tax discounter
• a corporation that is deemed to be a financial institution because it has elected to have certain taxable supplies deemed to be financial services

For more information, see GST/HST Memorandum 17-6, Definition of "Listed Financial Institution".

Major addition, for the purposes of new housing rebates, means work on a house that is so significant that the result is viewed as a newly built house. The addition, by itself, would not be considered to result in a newly built house. Significant physical and functional changes also have to be made to the existing house so that the resulting structure would be seen as a newly constructed house.

The addition should at least double the size of the livable areas of your existing house, which is absorbed into the new one. An example would be making significant structural changes to the appearance and layout of an existing bungalow and adding a full second story.

Medical funding, for the purposes of the public service bodies' rebate, means an amount of money (including a forgivable loan) paid or payable to a supplier for health care services as consideration for the supply, or to financially assist the supplier in making the supply. However, amount of money does not include any other type of loan or a refund, remission, rebate of, or credit in respect of, taxes, duties, or fees imposed under any statute. In addition, the amount must be paid or payable to the supplier by a government or a person that is a charity, public institution, or qualifying non-profit organization one of the purposes of which is to organize or coordinate the delivery of health care services to the public. It is also reasonable to expect that a government is the primary source of funding of the person for the delivery of health care services to the public during the fiscal year in which the services are supplied.

Membership includes a right granted by a particular person that entitles another person to services that are provided by, or to the use of facilities that are operated by, the particular person and that are not available, or are not available to the same extent or for the same fee or charge, to persons to whom such a right has not been granted. Membership also includes such a right that is conditional on the acquisition or ownership of a share, bond, debenture or other security.

Midwife, for the purposes of the public service bodies' rebate, means a person who is entitled under the laws of a province to practise the profession of midwifery.

Mineral includes:

• ammonite gemstone
• bituminous sands
• calcium chloride
• coal
• gravel
• kaolin
• oil shale
• silica
• sand and petroleum
• natural gas
• related hydrocarbons

Mobile home means a building, the manufacture and assembly of which is completed or substantially completed, that is:

• equipped with complete plumbing, electrical, and heating facilities
• designed to be moved to a site for installation on a foundation and connection to service facilities
• to be occupied as a place of residence

A mobile home may include a modular home, but it does not include travel trailers, motor homes, camping trailers, or other vehicles or trailers designed and used for recreational purposes. A mobile home does not include any freestanding appliances or furniture sold with the home.

Modification service means a service performed on a motor vehicle to specially equip or adapt the vehicle for its use by or in transporting an individual using a wheelchair, or to specially equip the vehicle with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability.

A rebate for modification services and for the parts is only available if the modification services have been performed on a vehicle outside Canada or outside a participating province and brought back into Canada or into a participating province. Modification services performed within Canada and the parts are zero-rated (taxable at 0%), as is the supply of an auxiliary driving control specially designed to facilitate the operation of a vehicle by an individual with a disability.

Modular home means a factory‑built house or building intended for residential occupancy made up of modules, with at least three walls and a roof or ceiling.

For GST/HST purposes, a modular home must be:

• equipped with complete plumbing, electrical, and heating facilities
• designed to be moved to a site for installation on a foundation and connected to service facilities
• used as a place of residence

In addition, the modules are to be in as finished a condition as possible before leaving the manufacturer's premises, considering that they must be transported. A modular home does not include any freestanding appliances or furniture sold with the structure.

Multiple unit residential complex means a residential complex that contains more than one residential unit, but does not include a condominium complex. For the purposes of the GST/HST new residential rental property rebate, a multiple unit residential complex does not include a duplex.

Municipality means an incorporated city, town, village, metropolitan authority, township, district, county or rural municipality, or other incorporated municipal body however designated, and such other local authority that the Minister of National Revenue may determine to be a municipality for GST/HST purposes.

Municipal rebate means a public service bodies' rebate available for municipalities at a rate of 100% of the GST and the federal part of the HST. Municipalities in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Ontario are also entitled to a municipal rebate for a percentage of the provincial part of the HST.

Newly constructed or substantially renovated housing includes a house (or housing) that is newly built, has been substantially renovated, has undergone a major addition in conjunction with the renovation of the existing house, or has been converted from non-residential use to use as a place of residence for individuals.

Non-attributable input of a person means property or a service that is:

• not an excluded input or an exclusive input of the person
• acquired, imported, or brought into a participating province by the person
• not attributable to the making of any particular supply by the person

Non-creditable tax charged in respect of property or a service for a claim period generally means the total GST/HST that became payable during a claim period or that was paid during a claim period without having become payable minus the following amounts:

• any input tax credits the person claimed or is entitled to claim for any of that GST/HST
• any rebate, refund or remission of any of that GST/HST that it is reasonable to expect the person received or is entitled to receive under any other section of the Excise Tax Act or under any other Act of Parliament
• any amount of that GST/HST that is refunded, credited or adjusted in the person's favour and for which it has either received a credit note from the supplier or has issued a debit note to the supplier

For more information, see GST/HST Memorandum 13-5, Non-creditable Tax Charged.

Non-participating province means a province or territory that is not a participating province or any other area in Canada that is outside the participating provinces.

Non-profit organization (NPO) means a person (other than an individual, estate, trust, charity, public institution, municipality, or government) that meets both of the following conditions:

• It is organized and operated solely for non-profit purposes
• It does not distribute or make available any of its income for the personal benefit of any proprietor, member, or shareholder, unless the proprietor, member, or shareholder is a club, a society, or an association that has, as its primary purpose and function, the promotion of amateur athletics in Canada

Non-resident means a person who does not reside in Canada. However, if a non-resident person carries on activities through a permanent establishment in Canada, the person is considered to be resident in Canada in respect of, and only in respect of, the activities of the person carried on through that permanent establishment.

Non-selected public service body activities are activities other than:

• in the case of a person designated to be a municipality, those activities for which a person was designated as a municipality
• activities carried out in the course of:
  • in the case of a person determined to be a municipality, fulfilling responsibilities as a local authority
  • in the case of a person acting in its capacity as a hospital authority, operating a public hospital, making facility supplies, ancillary supplies, or home medical supplies or operating a qualifying facility to make facility supplies
  • in the case of a person acting in its capacity as a facility operator, making facility supplies, ancillary supplies, or home medical supplies or operating a qualifying facility to make facility supplies
  • in the case of a person acting in its capacity as an external supplier, making facility supplies, ancillary supplies, or home medical supplies
  • in the case of a person acting in its capacity as a school authority, public college, or university, operating an elementary or a secondary school, a post-secondary college or technical institute, a recognized degree-granting institution or a college affiliated with, or research body of, such a degree-granting institution

Operative extent of property or a service means the extent to which the consumption or use of the property or service is for either of the following:

• for the purpose of making taxable supplies for consideration
• for purposes other than making taxable supplies for consideration

Organizer of a convention means a person who acquires the convention facility or related convention supplies and organizes the event for the sponsor.

Origin means either of the following:

• in respect of a continuous freight movement, the place where the first carrier engaged in the movement takes possession of the property being transported
• in respect of a continuous journey, the place where the passenger transportation service that is included in the continuous journey and that is first provided begins

Owner-built home, for the purposes of new housing rebates, means a home constructed or substantially renovated by the owner of the home, the owner's contractor, or both.

Participant in a joint venture means either of the following:

• a person who, under a written joint venture agreement, makes an investment by contributing resources and takes a proportionate share of any revenue or incurs a proportionate share of the losses from the joint venture activities
• a person, without a financial interest, who is designated as the operator of the joint venture under a written agreement and is responsible for the managerial or operational control of the joint venture

For more information, see GST/HST Policy Statement P-106, Administrative definition of a "participant" in a joint venture.

Participating province means a province that has harmonized its provincial sales tax with the GST to implement the harmonized sales tax (HST). Participating provinces include New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island, but do not include the Nova Scotia offshore area or the Newfoundland offshore area except to the extent that offshore activities, as defined in subsection 123(1) of the Excise Tax Act, are carried on in that area.

Passenger vehicle refers to most cars, station wagons, vans, and some pickup trucks. It includes any motor vehicle designed or adapted to carry not more than the driver and eight passengers. It does not include an ambulance, hearse, taxi, vehicles held as inventory and vans and pickup trucks with a seating capacity of not more than three people (including the driver) used primarily for the transportation of goods in the course of a business. A van, pickup truck, or similar vehicle which in the tax year in which it is acquired is used all or substantially all for the transportation of goods, equipment, or passengers in the course of gaining or producing income would not be considered a passenger vehicle.

Percentage of total floor space of a residential unit forming part of a residential complex, or part of an addition to a multiple unit residential complex, is calculated as the total square metres of floor space occupied by the unit divided by the total square metres of floor space occupied by all the residential units in the residential complex or addition.

Permanent establishment of a person generally means either of the following:

• a fixed place of business of the person, including a place of management, a branch, an office, a factory, or a workshop; or a mine, an oil or gas well, a quarry, timberland, or any other place where natural resources are extracted, through which the person supplies property or services
• a fixed place of business of someone else (other than a broker, general commission agent, or other independent agent acting in the ordinary course of business) who is acting in Canada for the person and through whom the person supplies property or services in the ordinary course of business

Permit imprint means an indicia the use of which as evidence of the payment of postage exclusively by a person is authorized under an agreement between the Canada Post Corporation and the person, but does not include a postage meter impression or any "business reply" indicia or item bearing that indicia.

Person means an individual, a partnership, a corporation, the estate of a deceased individual, a trust, or a body that is a society, a union, a club, an association, a commission or other organization of any kind.

Physician, for the purposes of the public service bodies' rebate, means a person who is entitled under the laws of a province to practice the profession of medicine.

Place of business means any premises, facility, or installation used to carry on business, whether or not it is used exclusively for that purpose. Premises, facilities, or installations may be considered to be a place of business whether they are owned or rented, or, in some cases, where they are simply available to the business.

Place outside Canada, in respect of a freight transportation service, includes at a particular time a place in Canada if, at that time, the goods being transported have been imported but have not been released, and the goods are being transported in compliance with the Customs Act or any other Act of Parliament that prohibits, controls, or regulates the importation of goods.

Possession, in respect of real property for GST/HST purposes, generally means that you are entitled to hold, control, or occupy the property. For example, if you pay the property taxes, have the right to alter the land, control entry or access to the property, or obtain insurance coverage, you may be considered to have possession of the property.

For the purposes of the new residential rental property rebate, possession also means where a landlord gives use or occupancy of a residential unit to an individual for use as the individual’s primary place of residence.

For more information, see GST/HST Memorandum 19-1, Real Property and the GST/HST.

Postage stamp means a stamp authorized by the Canada Post Corporation for use as evidence of the payment of postage, but does not include a postage meter impression, a permit imprint, or any "business reply" indicia or item bearing that indicia.

Precious metal means a bar, ingot, coin or wafer that is composed of gold, silver or platinum and that is refined to a purity level of at least 99.5% in the case of gold and platinum and 99.9% in the case of silver.

Prescribed government organization means a prescribed entity that is a crown agent (for example, a Crown corporation) that is organized and operated solely for non-profit purposes and does not distribute or make available any of its income for the personal benefit of any proprietor, member, or shareholder.

Prescribed publications include:

• books, newspapers, periodicals, magazines, and any similar printed publications, other than those described in Section 1 of Schedule VII to the Excise Tax Act
• audio recordings that relate to such publications and accompany those publications when submitted to Canada Post or a customs officer

Primarily generally means more than 50%.

Primary place of residence of an individual generally means the residence that the individual lives in on a permanent basis. An individual may have more than one residence, but is considered to have only one primary place of residence. For more information, see GST/HST Policy Statement P-228, Primary Place of Residence.

Procurative extent of property or a service means the extent to which the property or service is acquired, imported, or brought into a participating province for either of the following:

• for the purpose of making taxable supplies for consideration
• for purposes other than making taxable supplies for consideration

Proof of occupancy, for the purposes of GST/HST housing rebates, refers to the collective evidence that proves you occupy a new house and the nature of your occupancy. Examples include:

• the new house insurance policy that shows the dates and coverage and cancellation at the previous address
• vehicle insurance or registration that shows the new address
• an invoice for a telephone, hydro, or natural gas hook-up and for cancellation at the previous address

Property means any property, whether real or personal, movable or immovable, tangible or intangible, corporeal or incorporeal, and includes a right or interest of any kind, a share and a chose in action, but does not include money.

Public college means an organization that operates a post-secondary college or post-secondary technical institute that meets both of the following conditions:

• The organization receives funds from a government or a municipality that are paid for the purpose of assisting the organization in the ongoing provision of educational services to the general public
• The organization's primary purpose is to provide programs of instruction in one or more fields of vocational, technical, or general education

Public institution means a registered charity  for income tax purposes that is also a school authority, a public college, a university, a hospital authority, or a local authority determined by the Minister of National Revenue to be a municipality.

Public sector body means a government or a public service body.

Public service body means a charity, non-profit organization, municipality, university, public college, school authority or hospital authority.

Purchase price, for the purposes of GST/HST housing rebates, means the total amount paid for new housing from a builder but not including:

• any GST/HST payable for the purchase
• if the builder credited the new housing rebate reducing the total amount payable for the house, the amount of the rebate by which the builder reduced the amount payable
• land transfer taxes or any provincial sales tax that may be payable by the purchaser
• fees charged by persons other than the builder, such as lawyer's fees or survey costs paid to appraisers
• payments for goods and services paid directly to trade contractors other than the builder, even if these goods and services relate directly to the unit

Qualifying facility, for the purposes of the public service bodies' rebate, for a fiscal year or any part of a fiscal year, means a facility or part of a facility (other than a public hospital) that meets all of the following conditions:

• The services that are ordinarily rendered at the facility during the fiscal year, or during that part of the fiscal year, are facility supplies
• An amount of qualifying funding is paid or payable to the operator for the facility or part of the facility, for the fiscal year or that part of the year. The amount cannot be a nominal amount
• An accreditation, licence or other authorization that is recognized or provided for under a law of Canada or a province in respect of facilities for the provision of health care services applies to the facility or part during that fiscal year or part

Qualifying funding, for the purposes of the public service bodies' rebate, means an amount of money (including a forgivable loan) paid or payable to the operator of a facility in respect of the delivery of health care services to the public as any of the following:

• financial assistance to operate the facility
• consideration for an exempt supply of making the facility itself available, so that facility supplies can be made there
• consideration for facility supplies it provides at the facility

However, amount of money does not include any other type of loan, or a refund, remission, rebate of, or credit in respect of, taxes, duties, or fees imposed under any statute.

In addition, the amount must be paid or payable to the operator by a government or a person that is a charity, public institution, or qualifying non-profit organization one of the purposes of which is to organize or coordinate the delivery of health care services to the public. It is also reasonable to expect that a government is the primary source of funding of the person for the delivery of health care services to the public during the fiscal year in which the supplies are made.

Qualifying institution, for a particular fiscal year, means a financial institution that meets all of the following requirements in the fiscal year:

• The financial institution is of a prescribed class at any time in the particular fiscal year. The prescribed classes are banks, insurers, and securities dealers
• The financial institution has two fiscal years immediately preceding the particular fiscal year
• In each of those two fiscal years, the financial institution had an adjusted tax credit amount equal to or exceeding $500,000
• In each of those two fiscal years, the financial institution had a tax credit rate equal to or exceeding the prescribed percentage for the prescribed class of the financial institution for the particular fiscal year. The prescribed percentage is 12% for banks, 10% for insurers, and 15% for securities dealers

Qualifying motor vehicle means a motor vehicle that is equipped with a device designed exclusively to assist in placing a wheelchair in the vehicle without having to collapse the wheelchair, or with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability.

Qualifying motor vehicles do not include ambulances, but do include vehicles such as para-transit buses and vans that are specially equipped as described above.

Qualifying non-profit organization means a non-profit organization or prescribed government organization whose percentage of government funding is at least 40% of its total revenue.

Qualifying portion of basic tax content of a property generally means the portion of the basic tax content of the property that is attributable to the GST or the federal part of the HST. For more information, see Technical Information Bulletin B-087, GST/HST New Residential Rental Property Rebate.

Qualifying residential unit means any of the following:

• a residential unit the person owns, co-owns, or leases or sublets from another person
• a residential unit the person has possession as purchaser under an agreement of purchase and sale
• a residential unit in a residential complex that the person leases or sublets from another person

In addition, all of the following conditions have to be met:

• The unit is a self-contained residence
• The person holds the unit to:
  • make an exempt lease or sublease of the unit
  • make an exempt supply of property or service that includes giving possession or use of the unit under a lease, licence or similar arrangement entered into for the purposes of the unit's occupancy by an individual as a place of residence
  • make an exempt sale of the unit and an exempt lease of the land
  • occupy the unit as a primary place of residence as long as another unit situated in the same complex is a qualifying residential unit held for one of the purposes listed above
• The first use of the unit is or can reasonably be expected to be:
  • the primary place of residence of the person or a lessor (or a relation to the person or the lessor), for a period of at least one year (or for a shorter period if, after the shorter period, the unit is sold or leased to an individual who will occupy the unit as a primary place of residence)
  • the primary place of residence of an individual who will occupy the unit continuously for a period of at least one year (or for a shorter period if the unit is sold to another person for use as a primary place of residence of that person or a relation of that person, or taken by the person or lessor, or a relation of the person or the lessor, for use as their primary place of residence)
• If, after the first use, the person intends to occupy the unit or lease it as a place of residence or lodging to an individual who is a relation, shareholder, member, partner, or an individual with whom the person is not dealing at arm's length, the unit will be the primary place of residence of the person or that individual

If substantially all (90% or more) of the residential units of a multiple unit residential complex that contains ten or more residential units meet the one-year occupancy requirement, then all of the residential units in the complex are considered to meet the one-year occupancy requirement.

Qualifying subsidiary of a particular corporation means another corporation in respect of which the particular corporation holds qualifying voting control and owns at least 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of the other corporation, and includes:

• a corporation that is a qualifying subsidiary of a qualifying subsidiary of the particular corporation
• where the particular corporation is a credit union, every other credit union
• where the particular corporation is a member of a mutual insurance group, every other member of that group

Real property includes:

• a mobile home or floating home and any leasehold or ownership interest in such property
• in Quebec, immovable property and every lease of such property
• in any other place in Canada, all land, buildings of a permanent nature, and any interest in real property

Recipient of a supply of property or a service means:

• where consideration for the supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration
• where the above bullet does not apply and consideration is payable for the supply, the person who is liable to pay that consideration
• where no consideration is payable for the supply:
  • in the case of a supply of property by way of sale, the person to whom the property is delivered or made available
  • in the case of a supply of property otherwise than by way of sale, the person to whom possession or use of the property is given or made available
  • in the case of a supply of a service, the person to whom the service is rendered

Any reference to a person to whom a supply is made must be read as a reference to the recipient of the supply.

Registered party means a political party, local or regional party association of the party, candidate, or referendum committee governed by an Act of Parliament or a law of a province that imposes requirements relating to election finances or referendum expenses.

Registered pension plan (RPP) means a pension plan (other than the pooled pension plan) that has been registered by the Minister of National Revenue for the purposes of the ITA and whose registration has not been revoked.

Registrant means a person that is registered or required to be registered for the GST/HST, but generally excludes a person that is registered or required to be registered under special rules applicable to digital economy businesses unless that person registered under those special rules begins carrying on business in Canada, requiring them to register under the regular rules that apply to most persons.

Reimbursement means a payment made by one person to repay another person for amounts spent. An amount constitutes a reimbursement where the amount is fully accounted for by the person receiving the payment (that is, evidenced by supporting vouchers or records).

Related convention supplies generally means property or services that were acquired, imported, or brought into a participating province by a person exclusively for consumption, use or supply by the person in connection with a convention. They do not include any property or services that are provided for a separate charge, except if they are acquired exclusively to be consumed or used by an exhibitor in promoting its business, services, or property at the convention.

The following property and services are examples of possible related convention supplies.

Accommodation: hotel accommodation for use by the convention sponsor, organizer or exhibitor, or supplied to attendees as part of the admission.

Audiovisual: audio, audiovisual, and video services, including equipment and labour associated with technical services.

Business equipment: computers, photocopiers, desks, and chairs.

Convention materials: banners, flags, signs, papers, shields, floral arrangements, stand decorations, backdrops and other decorations, and office supplies.

Convention show services: equipment, furnishings, and labour to install such items as carpeting, tables, chairs, exhibit booths, decorative plants, draping, banners, displays, and signs.

Destination management companies: local planning management and co-ordination services in organizing elements of the convention for the incoming organization.

Food, beverages, and catering services (rebate limited to 50% of the GST/HST paid): food, beverages, and catering services related to the convention, including any gratuities charged.

Memorabilia: lapel buttons, billfolds, key chains, pens, pencils, corsages, T-shirts, scarves, mugs, jewellery, badges, and similar promotional items.

Moving and storage services: labour and equipment to deliver exhibit materials to the assigned space, including the storage of crates during the convention.

On-site services: personnel for on-site work such as the staffing of the registration desk, photographic services, and security services.

Printed matter: identification badges, information bulletins, on-site newsletters, booklets, programs, and memoranda relating to a convention or to products displayed at a convention.

Professional services: customs brokerage, legal, accounting, and freight forwarders' services.

Simultaneous interpretation equipment: simultaneous interpretation and audio-related equipment and labour.

Speakers and educational seminars: facilitators and course materials.

Telecommunications: telephone, fax, video, audio, or computer link-ups.

Translators and interpreters: individuals who translate and interpret the languages being used.

Transportation services between venues: chartered group transportation services used solely to transport attendees of the convention between any of the convention facilities, places of lodging for the attendees, or the transportation terminals (for example, airport shuttle services).

The following property and services are not related convention supplies:

• transportation services (other than the chartered transportation services described above)
• entertainment such as city tours
• goods, intangible personal property, or services provided to the attendees of the convention for a separate charge from the admission fee, such as souvenirs, books, and videos sold during the convention

Relation of an individual means another individual who is related by blood, marriage, common‑law partnership, or adoption within the meaning of the Income Tax Act.

Blood relation is limited to parents, children, or other descendants or siblings. Marriage relation includes a spouse or a person who is connected to the spouse by blood. Common-law partnership includes a common-law partner or a person who is connected to the common-law partner by blood. Adoption is the relation between the adoptive parent and the individual that has been adopted, either legally or in fact, as the child of the parent or of an individual who is connected to the parent by blood (except a brother or sister). For the purposes of the GST/HST new housing rebate only, a relation can also be a former spouse, or a former common‑law partner.

Reporting institution means a person, other than a prescribed person or a person of a prescribed class, that meets all of the following conditions:

• It is a financial institution at any time in the fiscal year
• It is a registrant at any time in the fiscal year
• The total of all amounts each of which is an amount included in computing, for the purposes of the Income Tax Act, the person's income, or, if the person is an individual, the person's income from a business, for the person's last taxation year that ends in the fiscal year, exceeds the amount determined by the following formula:

$2 million × A ÷ 365

(where A equals the number of days in the tax year)

Reserve means a reserve within the meaning of the Indian Act that is a tract of land which has been set apart for the use and benefit of a band within the meaning of the Indian Act, and equivalent lands under self-government legislation, for example, the Cree-Naskapi (of Quebec) Act and the Sechelt Indian Band Self-Government Act. A reserve also includes designated land which, according to the Indian Act, is a tract of land whose legal title remains vested in Her Majesty and in which the band for whose use and benefit it was set apart as a reserve has, otherwise than absolutely, released or surrendered its rights or interests.

Residential complex includes a building or part of a building in which one or more residential units are located, along with areas that are reasonably necessary for the use and enjoyment of the building as a place of residence for individuals. These include:

• part of any common areas and other appurtenances to the building
• the land on which the building is situated
• the part of the land immediately adjoining the building

A residential complex generally does not include a building or that part of a building that is a hotel, a motel, an inn, a boarding house, or similar place.

Residential condominium unit means a residential unit that is for use as a place of residence and that is, or is intended to be, a bounded space in a building designated or described as a separate unit on a registered condominium or strata lot plan or description (or similar plan or description registered under provincial law). A residential condominium unit includes any interest in the common areas as well as any interest in land pertaining to the ownership of the unit.

For example, an apartment unit or a townhouse would generally be a residential condominium unit if the unit:

• is a residential complex that is for use as a place of residence
• is registered as a condominium unit under provincial law
• is owned under a deeded title separate from any other unit in the condominium building
• can be sold separately from the other units in the condominium building

Residential trailer park generally means a trailer park that includes at least two sites, where both of the following conditions are met:

• at least 90% of the sites are, or are intended to be, supplied under a lease, licence, or similar arrangement, under which continuous possession or use of a site is provided for a period of at least:
  • one month in the case of mobile homes or other residential units
  • twelve months in the case of travel trailers or motor homes, or similar vehicles that are not residential units
• the sites are serviced and accessible, and would be suitable for use by occupants of a mobile home as a place of residence of individuals throughout the year (whether or not the park in fact has mobile homes)

A residential trailer park includes the land and any buildings and other appurtenances to the land that are reasonably necessary for use by the occupants, or for the operation of the park. If a person has two or more trailer parks that are located right beside each other, the conditions apply to all of the sites, and the trailer parks are considered to be one residential trailer park.

Residential unit means:

• a detached house, semi-detached house, row house unit, condominium unit, mobile home, floating home, or apartment
• a suite or room in a hotel, a motel, an inn, a boarding house or a lodging house, or in a residence for students, seniors, individuals with a disability, or other individuals
• any other similar premises or the part of such housing listed above that:
  • is occupied by an individual as a place of residence or lodging
  • is supplied by way of lease, licence or similar arrangement as a place of residence or lodging for individuals
  • is vacant, but was last occupied or supplied as a place of residence or lodging for individuals
  • has never been used or occupied for any purpose, but is intended to be used as a place of residence or lodging for individuals

See Guide RC4231, GST/HST New Residential Rental Property Rebate, for special rules that may apply for the purposes of the new residential rental property rebate where:

• a multiple unit residential complex contains at least ten residential units
• a multiple unit residential complex contains only two units
• there is direct access from one residential unit in a building to the living area of another residential unit in the same building

Residual input means a direct input or a non-attributable input.

School authority means an organization that operates an elementary or secondary school in which it provides instruction that meets the standards of educational instruction established by the government of the province or territory in which the school is operated.

For more information, see GST/HST Memorandum 20-1, School Authorities – Elementary and Secondary Schools.

Securities dealer for a fiscal year, means a person who meets all of the following conditions:

• They are not a bank or an insurer at any time in the fiscal year
• They carry on at any time in the fiscal year a business as a trader or dealer in, or as a broker or salesperson of, securities as the principal business of the person in Canada
• They are registered under the laws of Canada or a province to carry on in Canada at any time in the fiscal year a business as a trader or dealer in, or as a broker or salesperson of, securities

Selected listed financial institution (SLFI) – A financial institution would generally be considered to be an SLFI throughout a reporting period in a fiscal year that ends in its tax year if it is a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) of the ETA at any time in the tax year and the financial institution meets one of the following conditions:

• It has, at any time in the tax year, a permanent establishment in a participating province and has, at any time in the tax year, a permanent establishment in any other province
• It is a qualifying partnership during the tax year

For more information, see GST/HST Memorandum 17-6-1, Definition of Selected Listed Financial Institution.

Selected public service body means:

• a school authority, a university, or a public college that is established and operated otherwise than for profit
• a hospital authority
• a municipality
• a facility operator
• an external supplier

Self-contained residence, for the purposes of the GST/HST new residential rental property rebate, means either of the following:

• a residential unit that is a suite or room in a hotel, a motel, an inn, a boarding house or a lodging house or in a residence for students, seniors, individuals with a disability, or other individuals
• a residential unit that contains private kitchen facilities, a private bath, and a private living area

Self-government refund refers to a refund available to an Indigenous government that has entered into an agreement with the Government of Canada that provides for a refund of the GST and the federal part of the HST for property and services that are acquired for self-government activities. Indigenous governments that have entered into such agreements include those Yukon First Nations with self-government agreements, the Nisga'a Nation, the Tlicho First Nation, the Tsawwassen First Nation, the Maa-nulth First Nations, the Tla'amin First Nation, the Déline First Nation, and the Labrador Inuit.

An Indigenous government that has such an agreement may be eligible to claim a refund of 100% of the GST and the federal part of the HST paid or payable on property and services. The terms and conditions that apply to the refund of the GST and the federal part of the HST are included in each agreement.

For more information, see GST/HST public services bodies' rebate.

Service means anything other than:

• property
• money
• anything that is supplied to an employer by an employee in the course of employment

Shipper of tangible personal property means the person who transfers possession of the property being shipped to a carrier at the origin of a continuous freight movement or a continuous outbound freight movement. For GST/HST purposes, a person cannot be both a shipper and a carrier for the same shipment; the person is considered a shipper only.

Shipper's declaration – The shipper's declaration should state that the goods are being shipped for export and the carrier's freight transportation services are part of a continuous outbound freight movement of the goods. The declaration could be on the bill of lading given to the original carrier, or on a separate document given to the carrier.

If the declaration is not made, the carrier's services are taxable at 5%, 13%, or 15% and the carrier has to collect the GST/HST on the freight transportation services provided in Canada, unless interlining applies (see If the freight transportation service has an interlining agreement).

A carrier's services are also taxable at 5%, 13%, or 15% if a shipper provides a declaration to the carrier but the goods are not exported. In this case, the carrier is not required to collect the GST/HST on its services if the carrier did not know or could not reasonably have known that the goods were being delivered to a destination in Canada. When the shipper provides a false declaration, the shipper has to account for the tax on the carrier's services.

Short-term accommodation means an accommodation unit in Canada supplied by way of lease, licence or similar arrangement as a place of lodging for an individual who will occupy it continuously for a period of less than one month and that costs more than $20 per night. For example, overnight or weeklong accommodation in any of the following would usually be considered short-term accommodation:

• hotels and motels
• resorts and lodges
• bed-and-breakfast establishments

Short-term accommodation includes any type of overnight shelter (such as a tent) that is part of a tour package that also includes food and the services of a guide.

Short-term accommodation does not include the following:

• shelter on a train, trailer, boat, or other structure that is, or could be, self-propelled (for example, cruise-ship cabins, train berths, houseboats, travel trailers, and all recreational vehicles)
• an accommodation unit supplied under a timeshare arrangement
• an accommodation unit when it is included in that part of a tour package that is not the taxable portion of the tour package

Single unit residential complex means a residential complex that does not contain more than one residential unit, but does not include a residential condominium unit. For the purposes of the GST/HST new housing rebate and the GST/HST new residential rental property rebate, reference to a single unit residential complex includes a residential complex containing not more than two residential units (for example, a duplex).

A single unit residential complex generally includes other structures near or adjacent to the unit, such as detached garages or sheds. It also includes the land subjacent and immediately contiguous to the unit that can reasonably be regarded as contributing to the use and enjoyment of the unit as a place of residence. The CRA considers that up to half a hectare (1.23 acres) of land may be reasonably necessary for the use and enjoyment of a unit. However, in some cases, more than half a hectare of land may be considered to form part of the complex.

Single serving of beverages means a serving of less than 600 ml in volume.

A single serving of ice cream, ice milk, sherbet, frozen yoghurt or frozen pudding, non-dairy substitutes for any of these products, or any product that contains any of these products means a serving of less than 500 ml in volume or 500 grams in weight.

A single serving of cakes, muffins, pies, pastries, tarts, cookies, doughnuts, brownies, croissants with sweetened filling or coating, or similar products means a serving weighing less than 230 grams or a portion or part of any of these goods when offered for sale as a single serving.

Ice cream and similar products are considered to be sold in single servings where the product is designed and marketed for sale in single servings.

Small supplier means a person whose revenue (along with the revenue of all persons associated with that person) from worldwide taxable supplies was equal to or less than $30,000 ($50,000 for public service bodies) in a single calendar quarter and over the last four consecutive calendar quarters. The calculation excludes consideration attributable to the sale of goodwill of a business, supplies of financial services, and supplies by way of sale of capital property.

Charities and public institutions are also considered small suppliers if they meet the gross revenue test of $250,000 or less.

For more information, see GST/HST Memorandum 2-2, Small suppliers.

Sole proprietorship (self-employed) means an unincorporated business owned and managed by one individual.

Sole proprietors are fully responsible for all debts and obligations related to their business. A creditor with a claim against a sole proprietor would normally have a right against all business and personal assets, meaning the creditor could seize some of the sole proprietor's personal belongings. This is known as unlimited liability.

The characteristics of a sole proprietorship are:

• the business is not incorporated
• the owner has sole responsibility for decision making
• the owner receives all profits and takes responsibility for all losses that are incurred by the business
• the owner is considered self-employed and reports their business income on their income tax and benefit return

For more information, see Sole proprietorship.

Specified facility operator means a non-profit organization operating, otherwise than for profit, a facility, or a part thereof, operated for the purpose of providing residents of the facility who have limited physical or mental capacity for self-supervision and self-care with:

• nursing and personal care under the direction or supervision of qualified medical and nursing care staff, or other personal and supervisory care (other than domestic services of an ordinary household nature), according to the individual requirements of the residents
• assistance with the activities of daily living
• assistance with social, recreational, and other related services to meet the psycho-social needs of the residents
• meals and accommodation

Specified motor vehicle means most motor vehicles, other than certain racing cars, and prescribed motor vehicles.

A motor vehicle means any vehicle that has to be registered for highway use in your province. Examples include:

• passenger vehicles
• trucks and other freight-transportation vehicles
• recreational and sporting vehicles such as snowmobiles and all-terrain vehicles
• travel and tent trailers, as well as snowmobile, boat, and other trailers or semi-trailers for on-road use
• motorcycles, scooters, and mopeds
• tractors
• special-purpose motor vehicles such as tow trucks, mobile cranes, firefighting vehicles, cement-mixer trucks, road sweepers, spraying vehicles, mobile workshops, and mobile radiology units

Specified supply means a supply of goods that:

• are imported at any time after the supply is made
• have been imported and are considered to have been supplied outside Canada because they are delivered or made available to the recipient before their release under the Customs Act

Specified total revenue means revenue from sales you have made in a year, except sales of:

• services you provide on goods you did not import or obtain physical possession of in Canada
• goods that you did not acquire in Canada or import into Canada
• added property that you used to process goods that you did not import into Canada or take physical possession of in Canada
• your own capital property

Sponsor of a convention means the person who convenes the convention and supplies admissions to it.

Stopover – For the purpose of determining if a supply of passenger transportation services may be zero-rated, a stopover, for a continuous journey of an individual or a group of individuals, means any place at which the individual or group embarks or disembarks a conveyance used in the provision of a passenger transportation service included in the continuous journey, for any reason other than transferring to another conveyance or to allow for servicing or refuelling of the conveyance. A stop between two legs of a journey that is 24 hours or less is not considered a stopover and will not affect whether the legs are part of a continuous journey.

However, for the purpose of determining the province where a supply of passenger transportation services is made, a stopover does not include, in the case of a continuous journey of an individual or group of individuals that does not include transportation by air and the origin and termination of which are in Canada, any place outside Canada where, at the time the journey begins, the individual or group is not scheduled to be outside Canada for an uninterrupted period of at least 24 hours during the course of the journey.

Substantial alteration of property means either of the following:

• you manufacture or produce goods (or have another person manufacture or produce goods for you)
• you process goods (or have another person process goods for you) and by doing so, you bring the goods to the state of finished inventory if:
  • the value that is added to the goods is more than 10% from non-basic services
  • the total value added from all processing services is more than 20%

You can use any reasonable method for valuing the goods in finished inventory. However, once you choose a method, you have to use that method each year.

Substantial renovation (for the purposes of new housing rebates) – Major changes have to be made to meet the definition of a substantial renovation. In a major renovation project, the interior of a building is essentially gutted. Generally, 90% or more of the interior of the existing housing has to be removed or replaced to qualify as a substantial renovation (the 90% test).

You do not have to remove or replace the foundation, exterior and interior supporting walls, roof, floors, and staircases to meet the 90% test.

Only livable areas count towards a substantial renovation, including finished basements and finished attics. Livable areas do not include garages or crawl spaces. Work done to partially complete a basement but not make it a livable basement does not count toward the 90% test.

Supplier means the person making the supply (for example, the vendor).

Supply means the provision of property or a service in any way, including sale, transfer, barter, exchange, licence, rental, lease, gift, or disposition.

Tax credit amount of a person for a fiscal year of the person means:

• If the person has made an election under subsection 141.02(9) in respect of the fiscal year, the total of all amounts each of which is an input tax credit (ITC) for the fiscal year in respect of a residual input tax amount of the person for the fiscal year that the person would, in the absence of that subsection, be entitled to claim
• If the person is a qualifying institution for the fiscal year and has not made an election under subsection 141.02(7) or (27) in respect of the fiscal year and has not received an authorization from the Minister of National Revenue to use for the fiscal year the particular methods set out in an application made under subsection 141.02(18), the total of all amounts each of which is an ITC for the fiscal year in respect of a residual input tax amount of the person for the fiscal year that the person would, if the person were not a qualifying institution for the fiscal year and did not make an election under subsection 141.02(09) in respect of the fiscal year, be entitled to claim
• In any other case, the total of all amounts each of which is an ITC for the fiscal year in respect of a residual input tax amount of the person for the fiscal year that the person is entitled to claim

Tax credit rate of a person for a fiscal year of the person means the quotient, expressed as a percentage, determined by dividing the tax credit amount of the person for the fiscal year by the total tax amount of the person for the fiscal year.

Telecommunications channel means a telecommunications circuit, line, frequency, channel, partial channel or other means of sending or receiving a telecommunication, but does not include a satellite channel.

Telecommunications facility means any facility, apparatus or other thing (including any wire, cable, radio, optical or other electromagnetic system, or any similar technical system, or any part thereof) that is used or is capable of being used for telecommunications.

Telecommunication service means:

• the service of emitting, transmitting or receiving signs, signals, writing, images or sounds or intelligence of any nature by wire, cable, radio, optical or other electromagnetic system, or by any similar technical system
• making available for such emission, transmission or reception telecommunications facilities of a person who carries on the business of supplying services referred in the preceding bullet

Termination of a continuous journey means the place where the passenger transportation service that is included in the continuous journey and that is last provided ends.

Tobacco product, for the purposes of the First Nations tax, means:

• every article made by a tobacco manufacturer including any step in the preparation from raw leaf tobacco into the tobacco product by any process whatsoever, including cigarettes, tobacco sticks, and snuff
• the leaves and stems of the tobacco plant if they have been processed further than packing, drying, and sorting
• cigars

Tour operator generally means a person who, in the ordinary course of business, packages tours that will be sold to, or are for the use of, either a group of travellers or an individual traveller. An outfitter or an owner of a lodge, hotel, or motel may be a tour operator if the person packages tours for sale in the ordinary course of a business.

Travel agencies, when they sell tour packages for a tour operator, are not tour operators for the purposes of the Foreign Convention and Tour Incentive Program rebate. A person who sells packages that include a convention facility or related convention supplies is also not a tour operator for this rebate.

Tour package means a combination of two or more services, or of property and services, that includes transportation services, accommodation, a right to use a campground or trailer park, or guide or interpreter services, where the property and services are supplied together for an all-inclusive price.

For more information, see Guide RC4036, GST/HST Information for the Travel and Convention Industry.

Trailer park of a person means a piece of land the person owns or leases and that is only composed of:

• one or more sites where each site is, or is intended to be, supplied by the person by way of lease, licence, or similar arrangement to the owner, lessee, or person in occupation or possession of a mobile home, or a travel trailer, motor home, or similar vehicle or trailer, situated or to be situated on the site
• other land that is reasonably necessary for:
  • the use and enjoyment of the sites by individuals residing in or occupying mobile homes, or travel trailers, motor homes, or similar vehicles or trailers, situated or to be situated on those sites
  • the purpose of operating the park

Transitional tax adjustment (for British Columbia and Ontario only) – Builders have to account for a transitional tax adjustment of up to 2% of the sale price for grandparented sales of newly constructed or substantially renovated housing (other than residential condominium units and complexes) where the housing was less than 90% complete as of the date of harmonization of the PST with the GST.

Tribal council means a grouping of bands with a common interest who have joined together to provide advisory or program services for two or more bands. It is another level of Indigenous government. A tribal council's board of directors is made up of members of the band councils.

University means a recognized degree-granting institution or an organization that operates a college affiliated with, or a research body of, such an institution.

For more information, see GST/HST Memorandum 20-3, Universities.

Zero-rated supplies are supplies of property and services that are taxable at the rate of 0%. This means there is no GST/HST charged on these supplies, but GST/HST registrants may be eligible to claim ITCs for the GST/HST paid or payable on property and services acquired to provide these supplies.