Zero-rated supplies

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

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

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.

What are excise taxes?

There are two types of federal levies on a limited range of products manufactured or produced in Canada: excise taxes and excise duties.

Harmonized sales tax (HST)

The participating provinces harmonized their provincial sales tax with the GST to implement the harmonized sales tax (HST) in those provinces. Generally, the HST applies to the same base of goods and services as the GST.

Goods and Services Tax (GST)

The goods and services tax (GST) is a tax that applies to most supplies of goods and services made in Canada. The GST also appplies to supplies of real property (land and buildings) and intangible property such as trademarks, rights to use a patent, and digitized products products downloaded from the Internet and paid for…

Partnership

A partnership is an association or relationship between two or more individuals, corporations, trusts, or partnerships that join together on a trade or business.

Participating province

Participating province refers to the province of Nova Scotia, New Brunswick, or Newfoundland and Labrador, Ontario, or Prince Edward Island that apply the harmonized sales tax (HST).

Input tax credits

Input Tax Credit (ITC) means a credit 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.