Terms we use in this guide

Basic tax content of a property generally means the amount of GST/HST payable on the acquisition of the property and on any improvements to the property, less any amounts that would be reimbursed to you (such as rebates or remissions, but not input tax credits). You also have to consider the fair market value of the property at that time and the value at last acquisition (including any improvements).

Commercial activity means any business, or adventure or concern in the nature of trade carried on by a person, but does not include the making of exempt supplies. Commercial activity also does not include any business, or adventure or concern in the nature of trade carried on without a reasonable expectation of profit by an individual, personal trust, or partnership where all the members are individuals. A commercial activity includes the supply of real property by any person, other than an exempt supply, whether or not there is a reasonable expectation of profit, and anything done in the course of making the supply or in connection with the making of the supply.

Exempt supply refers to goods and services that are not subject to GST/HST. GST/HST registrants cannot claim input tax credits to recover the GST/HST they pay or owe on expenses related to such supplies. However, as a non-profit organization, you may be eligible to claim a public service body rebate for such expenses.

Input tax credit (ITC) is a credit that GST/HST registrants can claim to recover the GST/HST they paid or owe for goods or services they acquired, imported into Canada, or brought into a participating province for use, consumption, or supply in their commercial activities.

Non-profit organization means a person (other than an individual, estate, trust, charity, public institution, municipality, or government) that meets the following conditions:

• It is organized and operated solely for non-profit purposes.
• It does not distribute or make available any of its income for the personal benefit of any proprietor, member, or shareholder, unless the proprietor, member, or shareholder is a club, a society, or an association which has, as its primary purpose and function, the promotion of amateur athletics in Canada.

Participating province means the province of Nova Scotia, New Brunswick, or Newfoundland and Labrador.

Note
The HST rate in the participating provinces is 14% on, or after July 1, 2006. Before July 2006, the rate was 15% . The GST rate in the rest of Canada is 6% on, or after July 1, 2006. Before July 2006, the rate was 7%.

Person means an individual, partnership, corporation, estate of a deceased individual, trust, or any organization such as a society, union, club, association, or a commission.

Property means any property, whether real or personal, movable or immovable, tangible or intangible, corporeal or incorporeal, and includes a right or interest of any kind, a share and a chose in action, but does not include money.

Public service body (PSB) means a non-profit organization, charity, municipality, school authority, hospital authority, public college, or university.

Qualifying non-profit organization means a non-profit organization that receives at least 40% of its total revenue from government funding during the fiscal year.

Registrant means a person who is registered or is required to be registered for GST/HST.

Small supplier refers to a person whose worldwide taxable supplies were equal to or less than $30,000 ($50,000 for public service bodies) in a calendar quarter and over the last four consecutive calendar quarters. For more information on how to calculate the small supplier threshold, see the section "Small supplier"

Supply means the provision of property or a service in any way, including sale, transfer, barter, exchange, licence, rental, lease, gift, and disposition.

Taxable supply refersto goods and services supplied in the course of a commercial activity and are subject to GST/HST at the rate of 6% and 14% respectively (before July 2006, the rate was 7% GST and 15% HST), or 0% (zero-rated).

Zero-rated supply refers to a limited number of goods and services that are taxable at the rate of 0%. This means no GST/HST is charged on the supply of these goods and services, but GST/HST registrants can claim an ITC for the GST/HST they pay or owe on purchases and expenses made to provide them.

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