Do you need to register for GST?
Some services are exempt from the GST/HST – that is, no GST/HST applies to them. This means that you do not charge the GST/HST on these services, and you are not entitled to claim input tax credits on property and services acquired to provide them. You cannot register for the GST/HST if your business provides only exempt services.
The following are examples of exempt services:
- a sale of housing that was last used by an individual as a place of residence;
- long-term rentals of 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, where the primary purpose is to provide care and supervision to children 14 years of age or under for periods of less than 24 hours per day;
- most domestic ferry services;
- legal aid services;
- many educational services such as:
- courses supplied by a vocational school leading to a certificate or a diploma that certifies the ability of individuals to practice or perform a trade or a vocation; or
- tutoring services made to an individual in a course that follows a curriculum designated by a school authority;
- music lessons;
- most services provided by financial institutions such as lending money or operating deposit accounts;
- the issuance of insurance policies by an insurer and arranging for the issuance of insurance policies by insurance agents;
- most property and services provided by charities and public institutions; and
- certain property and services provided by governments, non-profit organizations, municipalities, and other public service bodies including municipal transit services and standard residential services such as water distribution.
You do not have to register if:
- You are a small supplier with revenues under $30,000 annually, as long you do not carry on a taxi business or commercial ride-sharing services;
- Your only commercial activity is the sale of real property, other than in the course of a business. Although you do not have to register for the GST/HST in this case, your sale of real property may still be taxable and you may have to charge and collect the tax. For more information, see Real property; or
- You are a non-resident who does not carry on business in Canada. For more information, see Guide RC4027, Doing Business in Canada – GST/HST Information for Non-Residents.
If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.
