What is it?

An exempt supply is a good or service where the supplier is prohibited from charging value-added tax, such as GST, HST or PST.

Examples of exempt supplies include educational services, long-term health care, rental greater than 30 days, day care services, dental and health care, and financial services.

Why is it important?

When providing a good or service to an individual or organization external to the University, it is important to be aware whether taxes should be charged, how to collect and report on them, what records must be retained for audit purposes, and whether it is possible to claim an input tax credit.

As the actual supply is exempt from being taxed, the supplier may not recover taxes paid on the inputs to the supply in the form of input tax credits.

Where do I find more information?

For further information, please consult Financial Services’ HST website or the Tax Status Chart.