Canada Revenue Agency
www.cra.gc.ca
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Exempt goods and services
Most goods and services that charities (except for municipalities and designated municipalities who are also charities) provide are exempt from GST/HST. When goods or services are exempt, it means that, even if you are a GST/HST registrant, you do not charge GST/HST on them. Also, you cannot claim input tax credits for GST/HST you paid or owe on your purchases and expenses that relate to your exempt supplies.
Examples of goods and services that are exempt regardless of who provides them:
- long-term residential accommodation;
- child-care services (day-care services provided usually for less than 24 hours per day) to children 14 years of age or younger; and
- personal-care services for children, underprivileged individuals, or individuals with disabilities, when provided by a person operating an establishment for these individuals, in either institutional or non-institutional settings.
Examples of goods and services that are exempt when charities provide them:
- most services;
- supplies of used or donated goods;
- short-term residential accommodation (less than one month of occupancy);
- meals-on-wheels programs. This exemption is for a supply of food or beverages to seniors, underprivileged individuals, or individuals with a disability, under a program established and operated to provide prepared food to such individuals in their places of residence. Any supply of food or beverages made to a charity for these programs is also exempt from GST/HST;
- parking space rentals;
- facility rentals (e.g., halls for weddings); and
- catering services for private functions (e.g., wedding receptions).
