Sales or supplies to provincial and territorial governments

The governments of the participating provinces have agreed to pay GST/HST on their taxable purchases. In addition, all Prince Edward Island and Nunavut government departments and agencies pay GST/HST on their taxable purchases. Therefore, you have to charge GST/HST on taxable goods and services you make to the departments and agencies of these governments.

The remaining provincial and territorial governments do not pay GST/HST on their taxable purchases if they provide certification. These governments include all their government departments or ministries, and certain of their Crown corporations, boards, commissions, and agencies.

You do not charge GST/HST on taxable goods and services made to these governments if an authorized official provides evidence that they are a provincial or territorial department or entity.

We will accept a certification clause that an authorized official of a provincial or territorial government entity has signed, as satisfactory evidence. This is a statement on provincial or territorial purchase documents that certifies that a provincial or territorial government is purchasing the goods or services with Crown funds. As the vendor, you have to keep the purchase documents with the certification clause for audit purposes.

Employees of a provincial government who make official business purchases in their own name have to pay GST/HST.

Provincial governments have to charge GST/HST on their taxable supplies of goods and services.

You can claim input tax credits for any GST/HST you paid or owe on purchases you made to supply taxable goods and services to provincial or territorial governments, even though you did not collect GST/HST on the supply.