Glossary
Exempt supply
An exempt supply carries no GST/HST at all, and unlike a zero-rated supply, the supplier cannot claim input tax credits on the costs behind it. Many financial services, residential rent, and most health and education services fall into this category, which means the GST/HST a business pays on related expenses becomes a real cost rather than something it recovers. Knowing whether a sale is exempt, zero-rated, or an ordinary taxable supply changes how a business prices and files. Our GST, HST and PST guide covers how the categories differ in practice.
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