Meaning of extra‑curricular activities
14. The Act does not define the term extra‑curricular activity. For purposes of section 3 of Part III of Schedule V, the Canada Revenue Agency (CRA) views extra‑curricular activities to be activities that do not generally take place during regular school hours, are not part of a school curriculum, and are not requirements to complete any course. The CRA does not stipulate the type of activity that qualifies; however, it must be an activity that is organized under the authority and responsibility of the school authority.
15. For purposes of section 3 of Part III of Schedule V, extra‑curricular activities can also include activities that are supplied to students by a student council or a school club, provided the council or club is part of the school authority (that is, it is not a separate legal entity) and the activities can be said to take place subject to the authority and responsibility of the school authority.
16. An extra‑curricular activity is generally considered to take place under the authority and responsibility of the school authority if persons employed by or under contract with the school authority, or volunteers reporting to the school authority, supervise and control the activity.
17. The exemption under section 3 of Part III of Schedule V does not apply to supplies made by third parties to elementary or secondary school students. Although the exemption under section 3 applies to supplies of food and beverages, it does not apply to supplies of other tangible personal property such as class rings and school sweaters. Such supplies would be subject to the GST/HST unless exempt under another provision of the Act.
Example of school-sponsored dance
A school authority organizes a school dance primarily for the students of the school. Students are allowed to bring a guest. … The school authority’s principal provides a budget to the student council, which is part of the school authority, to provide decorations and authorizes the student council to sell the tickets to the students during school hours.
Admission … to the dance is exempt under section 3 … .