CRA finds that a government-assisted NPO providing door-to-door transportation services in a rural municipality was supplying GST/HST exempt municipal transit services
A non-profit organization which provided daily pre-booked door-to-door transportation services to members of the rural public within a municipality for fares was ruled to be providing a GST/HST exempt municipal transit services under Sched. V, Pt. VI, s. 1 given inter alia that it received funding from the province and the municipality to support the supply of public passenger transportation services, and all or substantially all of the its supplies were supplies of “public passenger transportation services” (not a defined term) provided within the municipality and its environs. However, its contract or charter service, where it provided a driver and vehicle for events, usually weddings, was taxable.
Neal Armstrong. Summary of 11 July 2018 Ruling 187784 under Sched. V, Pt. VI, s. 1 – municipal transit service.