Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 209968
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
Supply of lessons to bar or bat mitzvah students
Thank you for the fax from your representative […] of March 21, 2020, concerning the application of the goods and services tax/harmonized sales tax (GST/HST) to the supply of lessons to bar or bat mitzvah students. We apologize for the delay in responding.
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand the facts as follows [from the information provided]:
1. […][Information about the Client and the Client’s employment].
2. […][Additional information about the Client and the Client’s employment]
3. […][Additional information about the Client and the Client’s employment to differentiate that employment from the tutoring]
4. You are also self-employed as a tutor. You teach chanting to students for their bar mitzvah or bat mitzvah ceremony.
5. […]
[…][The Client explained that they teach singing based on the cantillation symbols called Trop marks found in the Torah. The Client teaches the students how to sing their passage in Hebrew from the Torah scroll and the related blessings. Studying with a tutor who is recognized by the Synagogue is mandatory to learn to chant properly for the ceremony.]
6. […][Explanation of how the Client teaches the students to sing each verse of the student’s Torah portion and to correct mistakes. The feedback process repeats for each verse until the entire Torah portion is learned.]
7. You noted that it takes […] months […] to prepare a student to chant their Torah portion and the related blessings for their event.
8. You noted that you use the […] [approach] of teaching music to instruct the students.
9. You are registered for GST/HST purposes under account number […].
RULING REQUESTED
You would like to know if the lessons you provide are exempt from GST/HST?
RULING GIVEN
Based on the facts set out above, we rule that your supplies of lessons as a self-employed tutor are exempt from GST/HST.
Music lessons
The supply of a service of tutoring or instructing an individual in music lessons is exempt from GST/HST. The CRA views a lesson as an activity designed to result in a progression or development of skills toward a pre-set lesson goal or objective. Music lessons involve formal instruction that develops skills in musical performance involving the use of the human voice or musical instruments, conducting an orchestra or musical composition.
We are of the opinion that the tutoring provided to bar mitzvah or bat mitzvah students qualifies as music lessons. Therefore, the tutoring is exempt from GST/HST. Students receive instruction in fundamental concepts of music such as dynamics, tempo and pitch. The tutoring also develops musical skills such as reading Trop marks in the Torah. The tutoring is based on an established pedagogy for music education. The students learn their Torah portion sequentially following the verses.
Deregistration
If a person registered in error, whether on the part of the CRA or the person in question, the person’s registration may be cancelled as of the date the person was registered.
To cancel your GST/HST registration, please send us completed Form RC145, Request to Close Business Number Program Accounts. Alternatively, you may request cancellation of your registration by calling the Business Window at 1-800-959-5525 or in writing as long as all necessary information is received.
For more information, please refer to Guide RC4022, General Information for GST/HST Registrants, under the heading “Cancelling your registration”, and GST/HST Memorandum 2.7, Cancellation of Registration, available on the CRA website.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the CRA is bound by the ruling given in this letter provided that: none of the issues discussed in the ruling are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 343-573-0977. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Desneiges Arbour
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
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