26 June 1999 GST/HST Interpretation HQR0001831 - Application of the GST/HST to the Supply of Educational Services

Dear XXXXX

This is in response to your telephone conversation of April 16, 1999, with Ken Syer of this office concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) XXXXX[.] You noted that universities may not be charging GST/HST when supplying the above courses. You are of the opinion that you are at a disadvantage as your organization does not benefit from any exemption.

We have considered your comments. However, as you know, it is possible that the application of the legislation may result in similar supplies having different tax status depending on the supplier and the supply itself. All supplies made in Canada are subject to GST/HST unless they are otherwise exempted by a specific provision of the Excise Tax Act (ETA). Part III of Schedule V to the ETA contains the relevant exempting dispositions for educational services that apply to various suppliers. Unless a specific exempting provision applies to a particular supply, the supply remains taxable.

Although your concern pertained specifically to XXXXX we cannot comment on the tax status of its supplies.

Should you have further questions or require clarification concerning the above-noted issues, please do not hesitate to contact either Suzanne Leclaire at (613) 954-7954 or myself at (613) 957-1175.

Yours truly,

Don Gagnon, L.L.B.
Educational Services and Indians Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate