Exempt supplies made by a vendor are not subject to GST/HST and the vendor is not entitled to an ITC for tax paid on inputs relating to these supplies.
Exempt supplies are described in Part I – VIII of Schedule V of the Excise Tax Act.
What Supplies are Exempt?
- Most supplies of personal property (property that is not real property) and services made by a Public Institution, other than supplies of new goods acquired/manufactured/produced by the Public Institution that were not donated to the Public Institution.
- Supplies of real property by a Public Service Body, unless a particular supply is carved out of the exemption.
- Certain educational services
- Certain health care services
The GST/HST Invoicing Decision Tree describes UBC’s GST/HST treatment of supplies.