Memberships

The following rules will apply to any amount that becomes due or is paid without having become due on memberships in a club, organization, or association.

When 90% or more of the membership period is before July 2010, GST will apply.

When more than 10% of the membership period is on or after July 1, 2010:

• GST will apply to any amount that becomes due or is paid without having become due on or before October 14, 2009.
• GST will apply to any amount that becomes due or is paid without having become due after October 14, 2009, and before May 2010. However, certain purchasers have to self-assess the provincial part of the HST. See Amount that becomes due or is paid without having become due after October 14, 2009, and before May 2010 by non-consumers.
• When an amount becomes due or is paid without having become due on or after May 1, 2010:
  • GST will apply to any amount that relates to the portion of the membership period that is before July 2010; and
  • HST will apply to any amount that relates to the portion of the membership period that is on or after July 1, 2010.

For information on how to account for the GST/HST, see Amount that becomes due or is paid without having become due on or after May 1, 2010, and before July 2010.

Examples
You operate a club and sell year-long memberships. The full membership fee becomes due at the time of sale. On January 2, 2010, you sell a membership which expires on December 31, 2010. The GST (and not the HST) applies to the sale of the membership, since the membership fee becomes due before May 2010. Self-assessment of the provincial part of the HST may be required for persons who are not consumers since the amount became due after October 14, 2009, and before May 2010.

You operate a club and sell year-long memberships. The full membership fee becomes due at the time of sale. On May 2, 2010, you sell a membership which expires on April 30, 2011. Since less than 90% of the membership period is before July 2010, the membership fee is prorated for purposes of charging the HST. The GST (and not the HST) applies to the part of the membership fee for the period before July 2010. However, the HST applies to the part of the membership fee for the period on or after July 1, 2010 (10 of the 12 months).

Forms and publications

• GST/HST Info Sheet GI-057, Ontario and British Columbia: Transition to the Harmonized Sales Tax - Memberships