What is it?
Harmonized Sales Tax is a value-added tax applied to the supply of most goods and services in Canada and it is composed of a combination of the 5% Federal Goods and Services Tax (GST) and the provincial tax rate (PST). Only Ontario and the Maritime provinces (ON, NB, NS, PEI, NFLD) are registered HST provinces. All other provinces (BC, AB, SK, MN, PQ) use a separate tax base for the 5% Federal GST and the provincial tax component, which is different in each province.
Why is it important?
As a public service body, the goods and services supplied by Carleton University that are directly related to our primary purpose entrepreneurial activities are tax exempt. Some of these items include application fees, tuition for credit, and long-term and continuous occupancy in residence.
However, when goods or services sold by the University are not considered to be related to our primary purpose, the items are taxable under the Tax Act. As such, the seller is required to …
- charge and collect the taxes
- identify the tax collection to the Cash Office upon deposit of funds
… so that the appropriate tax remittances can be made to Canada Revenue Agency by Business Operations.
Some items that are usually considered taxable when supplied by the University include:
- conference registration
- booth space for outside vendors
- books, posters and other products bearing the University or a departmental logo (e.g. USB sticks, pens, stress balls)
Where do I find more information?
To determine whether the good or service you are selling is taxable, please consult the Financial Services Tax Status Chart.
For further information on Harmonized Sales Tax, visit Financial Services HST.