GST/HST -> Exempt and taxable (including zero-rated) goods and services

Exempt goods and services

Some goods and services are exempt from GST/HST.  For a list of exempt items, see the CRA web page Taxable or exempt?, which has links to further information on exempt items.  For charities, see the CRA page Taxable or exempt for charities.

Taxable goods and services

Examples of taxable goods and services can be found in the CRA guide RC4022 under the heading "Taxable Goods and Services".

Zero-rated goods and services

Taxable goods and services, for purposes of GST and HST, include items which are zero-rated.  That is, these items are considered taxable, but the tax rate is zero.  These zero-rated items include things such as basic groceries, prescription drugs, most agricultural products, farm livestock, and many medical devices.  It also includes items which would be taxed at the full rate, except that they are being exported.  The transportation costs of the exported items would also be zero-rated.

Sales of zero-rated items must be included when calculating whether or not the business has reached the $30,000 annual threshold for collecting GST.  However, no GST is charged when these items are sold.  Visit the Canada Revenue Agency (CRA) website for more information on Zero-Rated (0%) Goods and Services.

Revised: December 10, 2009