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.
GST/HST Rulings Directorate
5th floor, Tower A, Place de Ville
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 239358r
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
Supply of certification sessions
This letter is in reference to the ruling provided by the Canada Revenue Agency (CRA), dated March 10, 2022, in particular to ruling #1 which concerned the application of the goods and services tax/harmonized sales tax (GST/HST) to “the courses on the invoice provided to the Secondary School through the […] program”. Upon review of the original ruling #1, it has been determined that the basis for the ruling is incorrect and, as such, the original ruling #1 is revoked. The following ruling replaces and supersedes ruling #1 and is effective July 1, 2025. The original ruling #2 remains the CRA’s position.
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 Government of Nova Scotia has proposed to decrease the rate of the HST from 15% to 14% effective April 1, 2025. 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 following based on our discussion, information received from you, as well as information found on the […][provincial government department] and […] websites:
1. […][Individual A] and […][Individual B] are partners operating under the name […][partnership operating name](the Client) in [City, Province].
2. The Client was assigned business number […] effective [mm/dd/yyyy]. The Client became a registrant for GST/HST purposes on [mm/dd/yyyy].
3. The Client is not a charity, a school authority, a vocational school, a public college or a university.
4. The Client’s mission is […].
5. The Client provides “a science-based […][initiative] running a variety of workshops and seminars […].” […]
6. In [yyyy], the [provincial government department] launched ‘[…]’, which sets out its goals for high school education […] including the […][Program]”.
7. […]
8. The [Program] is not compulsory. It is the student that decides whether they wish to enrol in the [Program].
9. […]
10. […]
11. […]
12. Due to the fact that the credit courses taken as part of [Program] count towards the required number of credits needed to graduate, a student may withdraw from the [Program] without it affecting their graduation date.
13. […]
14. [Program]s are available in all publicly funded school boards with high schools in the province. The [provincial government department] is providing additional funding to these school boards to support the [Program]s.
15. Depending on the school, a [Program] is available in […] the following […][business areas]: […][list of business areas].
16. […]
17. […]
18. […] the Client provides certification sessions on the following subject matter: Stress Management; Leadership Skills; Customer Service; Behavioural Management; Conflict Resolution; Group Dynamics; Communication; Ergonomics; Equity and Inclusion; Anti-Oppression and Allyship; Fitness; and Dietary Considerations. The content of the certification session remains the same regardless the [business areas] the student is pursuing.
19. […]
20. The Client refers to their service as a supply of sessions which have been customized to meet the requirements of the [Program]s. The Client also provides sessions on the same topics to corporations and parents.
21. The Client has stated that a session is not a course but rather a certification.
22. Each certification session provided by the Client is held virtually and is 75 – 90 minutes in length. There are a minimum of [#] students up to a maximum of [#] students in each session. The school is responsible for registering the students for the session as well as providing the space and communications necessary for the students to attend the session.
23. Each certification session focuses on:
- teaching students about the biochemical and physiological changes that occur with our thought processes and how our internal environment affects our external environment
- explaining in basic terms how our brain is neuroplastic and has the ability to change
- learning how gratitude, self love, forgiveness and being mindful impacts the way we think, feel and behave
- helping students understand the power of their choices and how to self regulate in any situation
- giving students the opportunity to use these soft skills within the hard skills of stress management, leadership, customer service, behaviour management, conflict resolution, group dynamics and communication
24. The Client is contacted by either a school or a school board to provide a session(s). The school or school board does not provide a contract for services. Instead, the Client provides the school/school board with a contract which stipulates the details including the name of the certification, number of students per session, price, date(s) and time(s). The Client has provided a template of its contract which the school or school board is required to sign and return before services are rendered.
25. Per the invoice provided, the information includes the name of each certification, the date the certification session was held, the number of students in attendance, the cost per student, and the total charged. The invoice shows that three separate certification sessions on different subject matter were held at the same school on the same day.
26. At the end of each certification session the student:
- must pass an assessment
- will receive a certificate of successful completion for each certification. It is the student’s responsibility to provide this to their teacher so it becomes part of their [Program] record.
27. […]
28. The […][provincial government department] has […] a list of all of the […] secondary level courses available […]. […] all the courses have course codes. None of the Client’s certification sessions are on the list.
RULING REQUESTED
You requested a ruling on the following:
Is the service of supplying a certification session to high school students, as part of their chosen [Program], exempt from the GST/HST?
RULING GIVEN
Based on the facts set out above, the supply of a certification session is taxable.
EXPLANATION
Supplies of many educational services, including certain supplies of a service of tutoring or instructing, are exempt from the GST/HST. These exemptions are listed in Part III of Schedule V. For more information, see GST/HST Memorandum 20-6, Tutoring and Equivalent Services.
Paragraph 9(a) of Part III of Schedule V requires that the supply of a service of instruction be in a course that is approved for credit by, or that follows a curriculum designated by, a school authority.
Since a certification session is not a course that is approved for credit, this exempting provision does not apply. As there is no other exempting provision that applies, the supply is taxable.
DISCLAIMER
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1-4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (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 873-455-1962. Should you have additional questions on the interpretation and application of the GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Sincerely,
Connie Carnegie
Senior Rulings Officer
Public Service Bodies and Rebates Unit
Public Service Bodies and Governments Division
GST/HST Rulings Directorate
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