HST - Resources, References, Documents and FAQs

The Canadian Revenue Agency offers a number of GST/HST references and guides. A few of them are listing below:

• General Information for GST/HST Registrants
• GST/HST Information for Non-Profit Organizations
• General Information regarding rates to charge, receipts and invoices, and collected GST/HST
• First Nations Guide
• Place of Supply Rules for the GST/HST
• The Excise Tax Act
• Type of Supply - Taxable, Zero-rated and Exempt
• Point of sale rebate
• Book rebates
• PSB rebates
• Self-assessment
• University specific tax provisions

View Financial Services Training page

If you still have questions after reading the material on the Financial Services website, an e-mail account is available to address general issues and concerns. The e-mail account will be maintained and monitored by Financial Services to ensure your questions are dealt with in a timely manner. If you have any general questions please email them to hst.help@queensu.ca, providing as much information as you can about the issue.

Please note that some questions may require a significant amount of research, and therefore a quick response time may not be possible. Other more complex questions may require professional HST advice. In this case, Financial Services can assist you with defining requirements and engaging a consultant to provide the advice. Before recommending that a consultant be engaged, Financial Services will consult with the HST information repository built through working with departments to respond to their questions and, where appropriate, with other universities to obtain insight into the tax treatment at other institutions.

Faculty Business Officers may also be able to assist departments with HST queries. For a list of contacts please refer to the Contacts tab on the Financial Services website or the link below.

Affiliated Organizations: These are organizations who have a connection with Queen’s and have funds starting with “9”. These organizations are considered external for tax purposes and therefore should be charged HST.

Agency Fund: Funds starting with “9”, which Queen’s has defined as agency funds, are considered affiliated (but external) organizations and therefore should be charged HST. This is not to be confused with CRA’s definition of Agent and Agency.

Agent: As defined by CRA, Queen’s is acting as an agent, has an agency relationship for HST purposes, when the following exist: (1) consent of both parties, (2) authority of the agent to affect the principal’s legal position; and (3) the principal’s control of the agent’s actions.

Book Rebate (Federal): A 100% rebate on the federal tax paid (5% GST / federal HST) on qualifying books. Unlike the Point of Sale Rebate for books, only certain entities, like universities, can claim this rebate.

Canada Revenue Agency (“CRA”): The federal body that administers GST and HST.

Capital Property: means property that is capital property of the person within the meaning of the Income Tax Act, other than property described in Class 12 or 14 of Schedule II to the Income Tax Regulations. The definition of capital property found in the Income Tax Act includes:

(a) any depreciable property of the taxpayer, and

(b) any property (other than depreciable property), any gain or loss from which would, if the property were disposed of, be a capital gain or capital loss, as the case may be, of the taxpayer.

The definition excludes property the sale of which would be taken into account in computing ordinary income, eligible capital property including intangibles, cultural property, resource properties, insurance policies and timber resource properties. Class 12 includes low value assets depreciated at a rate of 100 per cent, while Class 14 includes limited-time patents, concessions, franchises, and licences;

Commercial Activities: Taxable activities of an entity. For example, at Queen’s parking is a taxable activity.

Excise Tax Act (“ETA”): The Act that governs GST and HST.

Exempt: A supply that is not subject to GST or HST. Schedule V of the Excise Tax Act covers exemptions.

Government Sales Tax (“GST”): A tax of 5% that applies to most sales in Canada. It is the same as the federal component of HST.

Harmonized Sales Tax (“HST”): A tax that is comprised of a federal component (rate = 5%) and a provincial component that varies by province. In Ontario, the total HST rate is 13%.

Incidental Supply: A supply that is made with another supply for a single charge and that plays a minor or subordinate role in relation to the main supply. It will take on the tax status (taxable, exempt, zero-rated) of the main supply.

Input Tax Credit (“ITC”): A credit (rebate) that may be claimed on expenses of an entity that makes taxable or zero-rated sales.

Ministry of Finance (“MOF”): The federal body responsible for creating the Excise Tax Act and its Regulations.

Place of Supply: Used to determine the tax rate that applies to sales. It is most often based on where the goods are delivered or where the purchaser is located. It might also be based on where it is purchased in some instances.

Point of Sale Rebate: A rebate of the provincial component of the HST that is given at the point of sale by the vendor. In other words, the vendor never charges the provincial portion of the tax.

Public Sector Body (“PSB”): Federal or provincial government, municipality, non-profit organization, school authority, hospital authority, university, or public college. Special exemptions exist for PSBs. Queen’s is a PSB.

Public Sector Body Rebate (“PSB Rebate”): A rebate for Public Sector Bodies. For Queen’s and other universities, this rebate is 67% of the federal GST/HST (5%) and 78% of the provincial HST (8% in Ontario) on nearly all expenses.

Rebate: A full or partial refund of tax paid. The most common rebates for Queen’s are point of sale rebates, public sector body rebates, and book rebates.

Regulations: When referring to the Excise Tax Act, additional legislation that relates to GST/HST.

Self-assess: To remit tax on purchases directly to the government. Self-assessment is most common on foreign purchases where the supplier does not collect the tax.

Single Supply: Where a supply consisting of multiple elements is treated as one supply for taxation purposes. The elements must be inextricably bound up with each other such that they must be supplied together.

Small Supplier: A supplier with taxable sales of less than $30,000 per year (or $50,000 for public service bodies) who is not registered or required to register to charge GST/HST.

Taxable Supplies: Taxable supplies are goods and services that are supplied in the course of a commercial activity and are subject to GST/HST (including zero-rated supplies).

Zero-rated Supply: A supply where tax is charged at 0%. Schedule VI of the Excise Tax Act covers zero-rated supplies.

3.2.2 Quick Reference Guide - HST Rates by Sales Type (PDF, 174 KB)

3.2.3 Decision Trees

• HST on Sales Decision Tree (PDF, 110 KB)
• Self-Assessment Decision Tree (PDF, 109 KB)

Tax Rates for Provinces Chart (PDF, 361 KB)

The GST (goods and services tax) is a tax that you pay on most goods and services sold or provided in Canada. Generally, the HST (harmonized sales tax) applies to the same base as the GST and is the result of blending the GST with the PST (provincial sales tax). The following provinces have HST: New Brunswick, Nova Scotia, Newfoundland and Labrador, Ontario and Prince Edward Island. These provinces are considered participating provinces. Non-participating provinces are all the remaining provinces and territories. GST applies in all non-participating provinces. Some non-participating provides have PST as well as GST.

Queen's is registered for GST/HST purposes and therefore is required to charge and collect the applicable GST/HST on all taxable supplies of goods and services made available (sold) in Canada. Taxable supplies are supplies that are made in the course of a commercial activity and include zero-rated supplies. As a general rule, most services supplied by Queen's are exempt and most goods supplied by Queen's are taxable. Please also keep in mind that internal transactions between business units are not taxable for HST purposes. Please refer to section 1.0 HST on External Sales - HST Collected for more details and specifics.

If Queen's provides research or lab services (labour and consumables) to external customers and Queen's is not providing them with or producing a tangible property/good, then the lab service is exempt based on the general exemption for public institutions (Schedule V, Part IV of the Excise Tax Act).

Yes, Queen's is required to charge HST for non-credit courses held in Ontario. This is because non-credit courses do not qualify (meet the 3 criteria) for the exemption under Section VII of Part III of Schedule V to the Excise Tax Act.

We recommend that you take the following steps:

• Review the HST Guidelines and references on the Financial Services Website
• Contact your Business Officer
• Contact hst.help@queensu.ca

The HST registration number for Queen's University is 107868705 RT0001
Further corporate information can be found here.