Exempt goods and services

Some goods and services are exempt from GST/HST. This means that no GST/HST applies to them.

If you provide only exempt goods and services, you cannot register for GST/HST. This means that you do not charge GST/HST on your supplies of your goods and services, and you do not claim input tax credits.

Exempt goods and services include:

• used residential complex. For more information, see GST/HST Memoranda Series Chapter 19-2-1, Residential Real Property-Sales.
• long-term residential accommodation (of one month or more), and residential condominium fees. For more information, see GST/HST Memoranda Series Chapter 19-2-2, Residential Real Property-Rentals.
• some sales of vacant land or farmland. For more information, see GST/HST Memoranda Series Chapter 19-5, Land and Associated Real Property.
• most health, medical, and dental services performed by licensed physicians or dentists for medical reasons.
• child-care services (day-care services for less than 24 hours a day) for children 14 years old and younger.
• bridge, road, and ferry tolls (ferry tolls are taxed at 0% if the ferry service is to or from a place outside Canada). For more information, see GST/HST Memoranda Series Chapter 28-1, Ferries, Toll Roads and Toll Bridge.
• legal aid services. For more information, see GST/HST Memoranda Series Chapter 5-3, Legal Aid Services.
• many educational services such as:
  • courses from a vocational school that lead to a certificate or a diploma to practise a trade or a vocation; or
  • tutoring services for an individual who takes a course approved for credit by a school authority or the education service follows a curriculum designated by a school authority.
• music lessons.
• most food or beverages sold in an elementary or secondary school cafeteria primarily to students of the school and most meal plans provided in a university or public college.
• most services provided by financial institutions such as arrangements for a loan or mortgage. To learn which services are exempt, see GST/HST Memoranda Series Chapter 17, Special sectors: Financial institutions.
• arranging for and issuing insurance policies by insurance companies, agents, and brokers. For more information, see GST/HST Memoranda Series Chapter 17, Special sectors: Financial institutions.
• most goods and services provided by charities. For more information, see Guide RC4082, GST/HST Information for Charities.
• certain goods and services provided by non-profit organizations, governments, and other public service bodies, such as municipal transit services and standard residential services such as water distribution. For more information, see Guide RC4081, GST/HST Information for Non-Profit Organizations and Guide RC4049, GST/HST Information for Municipalities.