HST Exemptions:

Under the HST, there are three different ways that goods and services are treated: they are taxable, exempt (also there are goods and services that are exempt when charities provide them) or zero-rated.

Residential Energy

The Provincial Govenrment will also provide a provincially-administered point-of-sale rebate for residential energy.

Taxable

Most goods and services are taxable, which means that HST is charged on the supply of those items.
Businesses making taxable supplies can claim input tax credits credits to recover tax paid on inputs used in making those supplies.

Examples: cars, clothing, furniture, haircuts.

Is it taxable or is it exempt? To learn more about goods and services that are exempt or taxable from CRA (Canada Revenue Agency), click [ here ]

Exempt

Consumers do not pay HST on exempt items (i.e., businesses or people making exempt supplies do not charge HST). Those making exempt supplies cannot claim input tax credits to recover tax paid on inputs used in making those supplies.

Examples: health and dental services, financial services, long-term residential rental accommodation, child-care services, educational services.

Under the proposed HST, a number of products will be exempt from the seven per cent provincial portion of the B.C. HST (you would only pay out 5%, the federal portion of the HST, not the 7%).

Books; Children's-sized clothing and footwear;

Children’s car seats and car booster seats

Diapers

Feminine hygiene products

Motor fuels, including:

Gasoline, ethanol, diesel and biodiesel when used in motor vehicles as well as locomotive fuel used for trains, marine diesel used for boats, and aviation fuel and jet fuel used for aircraft.

Exempt goods and services:

imports of zero-rated goods (goods that are specifically taxed at zero per cent in Canada, such as prescription drugs)

goods imported by a charity or public institution that have been donated to the charity or institution

used residential housing

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 (day-care services for less than 24 hours a day) for children 14 years old and younger

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

bridge, road, and ferry tolls (ferry tolls are taxed at zero per cent if the ferry service is to or from a place outside Canada)

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

arranging for and issuing insurance policies by insurance companies, agents, and brokers

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

most goods and services provided by charities.

To find out more about exempt goods and service from CRA (Canada Revenue Agency), click [ here ]

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)

Fees for recreational programs are exempt from GST/HST if the programs are provided primarily to children 14 years of age and under (however, if there is overnight supervision throughout a substantial part of these programs, the fee is taxable).

Recreational services provided primarily to underprivileged individuals, or individuals with a disability, are also exempt.

Zero-rated goods and services

Consumers do not pay HST on zero-rated items (i.e., they pay a 0 per cent tax rate)

Those making zero-rated supplies can claim input tax credits to recover tax paid on inputs used in making those supplies.

Examples: basic groceries, prescription drugs, medical devices, exports.

Additional zero rated goods and services:

agricultural products such as grain, raw wool, and dried tobacco leaves.

basic groceries such as milk, bread, and vegetables.

medical appliances and supplies:

medical devices such as hearing aids; heart-monitoring devices; hospital beds; breathing apparatus; asthmatic devices; prescription eyeglasses/contact lenses; artificial eyes; artificial teeth such as dentures, crowns and bridges, orthodontic appliances; aids to locomotion such as a chair, commode chair, walker, wheelchair lift or other aid to locomotion for use by an individual with a disability; patient lifters; wheelchair ramp; portable wheelchair ramp; modifying motor vehicles to adapt the vehicle for the transportation of an individual using a wheelchair; prescription orthotic and orthopaedic devices; prosthesis/devices; canes or crutches; articles for blind individuals; guide dogs for blind individuals and hearing ear dogs; supplies and services related to medical and assistive devices.
exports.

most farm livestock.

most fishery products such as fish for human consumption.

prescription drugs and drug-dispensing fees.

To find out more about Zero rated products and services from CRA (Canada Revenue Agency,
click [ here ]