HST – University Sales

Goods and Property

• external sale of property (other than capital property) which was used in commercial activities of the University prior to its sale
• external sale or lease of new goods (not donated to the University) and related services
• external sales of property by way of lease, licence, or similar arrangement in conjunction with taxable sales of short-term rental of real property (other than accommodation) in the course of a business (e.g. external rental of a video recorder with a lecture hall)

Services

• catering services provided by the University for an event or function sponsored by another person or organization who contracts with the University for catering
• services or memberships providing the right to supervision or instruction in any recreational or athletic activity
• instruction of individuals or administration of examinations (subject to the exemptions for educational services, discussed in Section XIII.1 of the Goods and Services Tax Manual)
• services of a performing artist sold to a person or organization which makes taxable sales of admissions in respect of the performance

Admissions

• admissions to a place of amusement or memberships that provide free or discounted admissions that are taxable, except where the discount is insignificant relative to the cost of the membership
• admissions to a seminar, conference or similar event

Capital Property

• capital property used primarily in commercial activities of the University prior to its sale

Deemed Sales

• sales deemed to have been made by the University (e.g. certain taxable employee benefits and changes of use for capital property

Zero-rated Sales
The following are examples of sales taxed at the rate of zero. Therefore, the seller is not required to collect HST on these sales. Those items which a University department may be selling are in bold.

• prescription drugs
• medical devices
• basic groceries other than alcohol, snack foods, sweetened baked goods, restaurant meals and take-out foods
• agricultural and fishing supplies including:
  • fresh fish and other marine animals for human consumption
  • livestock, poultry, raw wool and certain agricultural produce
  • certain machinery and equipment designed for farmers or fishermen
• exports of goods and services
• international passenger travel services
• international freight transportation services
• supplies made to international organizations and officials including diplomats and member of visiting armed forces
• certain financial services
• initial sales or importations of precious metals

Exempt Sales
The following sales are exempt from HST. Those items which a University department may be selling are inbold.

• goods and services provided by small suppliers
• health care, child care and legal aid services
• educational services provided by elementary and secondary schools, publicly funded colleges and universities, and private secretarial schools and business colleges
• a broad range of supplies of a non-commercial nature by charities, non-profit organizations, municipalities, and federal and provincial governments
• sales of used residential housing and rentals of residential premises
• most domestic financial services
• certain intra-group financial services
• ferry, road and bridge tolls

Please refer to the quick reference table (HST Tax Status for Sales to External Parties) for various types of external sales activity throughout the University.