Most goods and services purchased in Canada, or brought into Canada are taxable. Examples of taxable goods and services can be found in the CRA Guide RC4022 under the heading "Taxable Supplies".
Some goods and services are exempt from GST/HST, such as:
| used residential housing |
| residential accommodation of one month or more |
| residential condominium fees |
| most health, medical, and dental services performed by licensed physicians or dentists for medical reasons |
| day-care services for children 14 years old and younger, if the services are for less than 24 hours a day |
| bridge, road, and ferry tolls |
| legal aid services |
| many educational services, including |
| courses supplied by a vocational school that lead to a certificate or diploma to practice a trade or vocation |
| tutoring services provided to an individual in a course approved for credit by a school authority or the service follows a curriculum designated by a school authority |
| For more information on educational services, see the Excise Tax Act Schedule V Exempt Supplies and scroll down to Part III Educational Services. |
Taxable goods and services, for purposes of GST and HST, include items which are zero-rated. That is, these items are considered taxable, but the tax rate is zero. These zero-rated items include things such as
| basic groceries, |
| prescription drugs, |
| most agricultural products and farm livestock, and |
| many medical devices, such as hearing aids and artificial teeth |
| as of July 1, 2015, products marketed exclusively for feminine hygiene purposes. This includes sanitary napkins, tampons, sanitary belts, menstrual cups or other similar products. See the May 2015 Notice of Ways and Means Motion and Explanatory Notes. |
Zero-rated also includes items which would be taxed at the full rate, except that they are being exported. The transportation costs of the exported items would also be zero-rated. If you provide services for non-residents of Canada, these services may be zero-rated. See the Canada Revenue Agency (CRA) GST/HST Memorandum 4.5.3 Exports - Services and Intellectual Property.
Sales of zero-rated items must be included when calculating whether or not the business has reached the $30,000 annual small supplier threshold for collecting GST. However, no GST is charged when the zero-rated items are sold. Visit the Canada Revenue Agency (CRA) website for more information on Which GST/HST rate to charge. This includes a table showing the tax status of various types of supplies, and some examples of supplies taxable at 0%.
Revised: July 22, 2024
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