Category: Definitions

Commercial activity

Posted on by Simon Zhong

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

Calendar quarter

Posted on by Simon Zhong

Calendar quarter means a period of thress consecutive calendar months ending on the last day of the following months: March, June, September, and December.

Small supplier

Posted on by Simon Zhong

Small supplier refers to a person whose revenue from worldwide taxable supplies was equal to or less than $30,000 ($50,000 for public service bodies) in a calendar quarter and over the last four consecutive calendar quarters.

Zero-rated supplies

Posted on by Simon Zhong

Zero-rated supplies are supplies of goods and services that are taxable at the rate of 0%. This means there is no GST/HST charged on the supply of these goods and services, but GST/HST registrants can claim ITCs for the GST/HST paid or payable on purchases and expenses made to provide them.

Taxable supplies

Posted on by Simon Zhong

Taxable supplies are supplies of goods and services that are made in the course of a commercial activity and are subject to the GST/HST (including zero-rated supplies).

Exempt supplies

Posted on by Simon Zhong

Exempt supplies are supplies of goods and services that are not subject to the GST/HST. GST/HST registrants cannot claim input tax credits to recover the GST/HST paid or payable on expenses related to such supplies.

Operating expenses

Posted on by Simon Zhong

Operating expenses are the routie costs of running a business. They include expenses for gasoline, electricity, and office supplies. They do not include the sot of buildings or machinery that are expected to last for sevearl years.