Goods and Services Tax


	Previous	Next		Contents	Index	Glossary	Library

Goods and Services Tax

Goods and Services Tax (GST) is tax levied on many consumer products and professional services. Some goods and services, however, are exempt from GST, such as health and educational services. Depending on whether a purchase is or is not considered commercial determines if the tax recovery is made through a rebate, an Input Tax Credit (ITC), or both. The GST rate is currently 7 %.

With Goods and Services Tax, the purchaser can file for an Input Tax Credit (ITC), a rebate on taxes payable, or both. To claim the ITC or rebate, the purchaser must have the supplier’s GST registration number on record. The supplier’s GST registration number on the invoice is usually enough to meet audit requirements. If purchases are used exclusively in commercial activities, the purchaser is eligible for a full ITC.

Non-profit organizations can also apply for rebates (at prescribed rates) for purchases that do not qualify for ITC. In addition, an organization can claim:

An ITC on purchased goods and services that qualify as commercial activities

A rebate on the non-commercial portion

Contents

Index

Glossary

Library