When taxable items are provided in conjunction with exempt items it must be determined whether items are being provided by way of separate supplies or together as one supply.
If the items together constitute one supply, the GST/HST status of the supply (i.e. taxable or exempt) is determined by the GST/HST status of the dominant element in the supply.
Multiple supplies occur when one or more of the elements can be broken out. If the elements are so closely related that they must be supplied together, they will be part of a single supply.
Learn more by reading the CRA’s Policy Statement P-077R2 Single and Multiple Supplies.
Exempt Supplies
Exempt supplies made by a vendor are not subject to GST/HST and the vendor is not entitled to an input tax credit (ITC) for tax paid by the vendor on inputs relating to these supplies.
Taxable Supplies
Most supplies made by UBC are exempt supplies, meaning only a limited number of supplies are taxable supplies.