4 March 2004 GST/HST Interpretation 44302 - Music Lessons

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Dear XXXXX,

Thank you for your letter XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to various programs offered by one of your clients. We apologize for the delay in responding.

As outlined in your letter, your client offers various programs containing music instruction to children. Instructors are taught the program methodology and then offer classes through their own individual businesses located throughout XXXXX. Programs consist of XXXXX lessons with classes meeting weekly for XXXXX minutes. Lesson plans are outlined for the instructors in a guide, and take-home materials are given to the children. There is no formal assessment of children, although some children may repeat a program.

The programs are broken into age groups XXXXX. The programs for ages under XXXXX may feature vocal play, movement, dance, musical concepts, storytelling, instrument exploration, and other activities. The program for children XXXXX is designed to help prepare a child for the more formal music lessons that may begin at age XXXXX. It features reading and writing music, learning to play simple pre-keyboard, string and woodwind instruments, focused listening to identify types of instruments or music, and other similar activities.

Interpretation Requested

What is the application of the GST/HST to music lessons?

Interpretation Given

As discussed during our telephone conversations XXXXX, we are unable to issue you a ruling with respect to your enquiry as rulings can only be issued with regard to a clearly defined fact situation of a particular person. You indicated that you are unable to disclose the details concerning your client. Accordingly, we are pleased to provide you with the following interpretation of the relevant provisions of the Excise Tax Act (ETA).

Pursuant to paragraph 9(b) of Part III of Schedule V to the ETA and the Equivalent Courses (GST/HST) Regulations, music lessons are prescribed equivalents to music courses that follow a curriculum designated by a school authority. Accordingly, private music lessons supplied to an individual are treated in the same manner as those approved and offered through the regular elementary or secondary school curriculum of a school authority.

The Canada Revenue Agency (CRA) views a lesson as part of a series of instruction designed to result in a progression or development of skills toward a pre-set lesson goal or objective where there is an evaluation of the student's progress. Music lessons involve formal instruction that develops skills in musical performance with the use of the human voice or musical instruments, conducting an orchestra, or musical composition.

Music lessons would not include instruction in music-recording skills, music history or the teaching of techniques of music education. The fact that an activity involves music does not mean it is a supply of instruction in music or a music lesson. Activities involving music entertainment or appreciation and recreational courses that include an element of music (e.g. ballroom dancing, aerobics) would not be considered to qualify as music lessons.

Many child-care and pre-school facilities have music as a component of their activities. A program that consists of other activities such as dancing, drama, pretend play, or literature linked to music is not devoted to instruction in music. These services would not be regarded as music lessons for purposes of the exemption under paragraph 9(b) of Part III of Schedule V to the ETA.

The information above is specific to the exempting provision for music lessons. If your client is operating a child-care facility, or is a charity, or a non-profit organization, there are other exempting provisions under the ETA that may be considered in determining the status of the supplies.

The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the ETA, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the CRA with respect to a particular situation.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-0420.

Yours truly,

Debra Murphy
Charities, NPO & Educational Services Unit
Public Service bodies & Governments Division
Excise and GST/HST Rulings Directorate