What we mean by taxable, zero-rated or exempt supplies

Goods and services are considered taxable unless they are specifically listed as exempt. Most goods and services supplied in or imported into Canada are taxable at 7%, 15%, or zero-rated (0%). A small number of goods and services are exempt from GST/HST. If 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 the sale or supply of your goods and services and you do not claim input tax credits.

Examples of exempt goods and services include:

• used residential housing;
• long-term residential accommodation (of one month or more), and residential condominium fees;
• 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);
• legal aid services;
• many educational services such as:
  • courses from a vocational school that leads to a certificate or a diploma to practice a trade or a vocation, or
  • tutoring services for an individual who takes a course approved for credit by a school authority or the service follows a curriculum designated by a school authority;
• music lessons;
• 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; and
• 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 on this topic, see Taxable or exempt.

Forms and publications

• General Information for GST/HST Registrants guide (RC4022)