CRA, following Alexander College, now recognizes that a college granting provincially-recognized two-year degrees can qualify as a “university”

The ETA states that a "’university’ means a recognized degree-granting institution or an organization that operates a college affiliated with … such an institution." Alexander College found that a private for-profit B.C. college with a two-year arts program providing "associate degrees," which were recognized as degrees under the Degree Authorization Act (B.C.), qualified as a university under the bolded language above, so that its fees were GST-exempt.

CRA has acknowledged that it will follow Alexander College:

[A] “recognized degree-granting institution” will now include a college or similar organization that is authorized by a province under provincial legislation or a governmental body in a foreign entity’s home jurisdiction to grant a degree where degree is defined in the applicable legislation to include an academic achievement at the associate level or higher. Therefore … the CRA no longer requires the degree to be at the baccalaureate level or higher.

Neal Armstrong. Summary of Excise and GST/HST News - No. 107 February 2020 under ETA Sched. V, Pt. III, s. 7.