Exempt supplies - List of GST/HST exempt supplies

Video series: GST/HST Information for a New Small Business

Segment 6: Purchases and expenses for which you cannot claim ITCs

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

If you provide only exempt goods and services, you cannot register for the GST/HST. This means that you do not charge the 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 complexes.
  • long-term residential accommodation (of one month or more), and residential condominium fees.
  • some sales of vacant land or farmland.
  • most health, medical, and dental services performed by licensed physicians or dentists for medical reasons.
  • child care services (daycare 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).
  • legal aid services.
  • most 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.
  • arranging for and issuing insurance policies by insurance companies, agents, and brokers.
  • most goods and services provided by 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.

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