GST/HST – What Does It Mean For Charities?

There are currently over 85 thousand registered charities in Canada. Every year, millions of people contribute both money and time to these charities, yet how Canada's Goods and Service Tax / Harmonized Sales Tax (GST/HST) rules may impact these charities is often overlooked. The GST/HST rules that apply to charities can be significantly different from those for businesses. This article speaks to the fundamental GST/HST rules that are applicable specifically to charities.

What constitutes a "charity" for GST/HST purposes?

A charity for GST/HST purposes is a registered charity or a registered Canadian amateur athletic association, but does not include a public institution (that is, a registered charity that is a school authority, a public college, a university, a hospital authority, or a local authority determined to be a municipality).