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GST/HST Rulings and Interpretations
Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Avenue
Vanier, ON K1A 0L5XXXXXAttention: XXXXX
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Case: HQR0001472XXXXXMay 14, 1999
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Subject:
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GST/HST APPLICATION RULING
Tax Status of Photography Courses
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Dear XXXXX
Thank you for your letter of August 19, 1999 (with attachments), concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the photography courses noted below. We apologize for the delay in responding.
Statement of Facts
1. XXXXX was established to provide instruction in courses related to the photography industry.
2. In addition to courses in photography, XXXXX also rents darkrooms, studios and equipment to students and the general public. However, XXXXX XXXXX are generated from the provision of instruction in courses related to the photography industry.
3. XXXXX is registered under and governed by the XXXXX XXXXX which is XXXXX respecting vocational schools. It is also a registrant for GST/HST purposes.
4. XXXXX offers a full-time 10 month XXXXX program ("full-time diploma program"). The full-time diploma program is offered on a pass/fail basis.
5. The determination of whether a student passes or fails the full-time diploma program is based on the student's performance on a series of tests, graded materials or projects. The full-time diploma program consists of the following courses:
Photo 1 — Darkroom
Studio History of Photography
Photojournalism
Digital Imaging 1 — Professional Portraiture
Outdoor Photography
Photo 2 — Darkroom 2
Studio 3
Photo 3 — Darkroom 3
Commercial Photography
Digital Imaging 2 — Portrait 2
Basic Business
Special Techniques — Darkroom 4
Studio 4
Digital Imaging 3 — The View Camera
Marketing/Business
Portfolio Development — Practicum
6. In addition to the full-time diploma program, XXXXX offers a number of part-time courses, as well as certificate programs. The part-time courses offered by XXXXX are noted below:
Adobe Workshop
Scanning and Preparing Digital Restoration of Digital Images — Antique Photos
Images for the Web
Photo Deluxe for Business
Digital Cameras and Their Uses
Basic Photography
Intermediate Photography
Basic Darkroom — Advance Darkroom
Practical Studio Lighting
Advanced Studio Lighting — The View Camera
Fashion Photography
Glamour Portraiture
Street Photography
Photojournalism
Graphic Design for Photographers
Alternative Processes
Candid Photography
Nature Photography
History of Photography
Commercial Photography
Basic Business Marketing
People Photography
Travel Photography — Child Photography
Polaroid Transfer
Figure Photography
Hand Colouring
Infrared Black & White
Wedding Photography
Photography — Architectural Photography
Creative Composition
Photo Retouching — The Zone System
Portfolio
Stock Photography Macro and Close-up
Photographing Works of Art
Custom Labs and You
Photography — Displaying the Final Print
7. The certificate programs offered by XXXXX consist of between XXXXX instruction chosen from the list of part-time pass/fail courses noted above. The part-time courses are between XXXXX[.]
8. In order to complete a certificate program, and therefore obtain a certificate, students must successfully complete a minimum number of core courses from the above list of part-time courses, including Basic Photography, Basic Darkroom and Basic Business. In addition to the core courses, a student must successfully complete certain elective courses, also chosen from the above list of part-time courses.
9. The part-time courses are offered on a pass/fail basis. In order to successfully complete a part-time course, a student must receive a C+ grade. A student's mark is assigned based on his/her performance on a single or series of graded materials or projects.
10. While the part-time courses cannot be applied as credit towards the full-time diploma program, they can be applied as credit towards the certificate programs.
Ruling Requested
1. Whether XXXXX qualifies as a vocational school as defined in section 1 of Part III of Schedule V to the ETA?
2. Whether the full-time XXXXX Program is an exempt supply pursuant to section 8 of Part III of Schedule V to the ETA?
3. Whether the part-time courses offered by XXXXX are exempt supplies pursuant to section 8 of Part III of Schedule V to the ETA?
Ruling Given
XXXXX was established, and continues to operate, primarily to provide students with instruction in courses that develop or enhance students' occupational skills. As such XXXXX is a vocational school for the purposes of section 1 of Part III of Schedule V to the ETA. Since XXXXX is also governed by XXXXX respecting vocational schools, it may offer courses exempt from the GST/HST pursuant to section 8 of Part III of Schedule V to the ETA if the courses lead to certificates or diplomas that attest to the competence of individuals to practice or perform a trade or vocation.
Based on the facts, noted above, it is the Department's position that the courses offered by XXXXX relate to a trade or vocation. Further, the Department considers the certificate programs offered by XXXXX to be full-time programs. Since the part-time courses may be applied as credit towards the full-time certificate programs, and the full-time certificate programs are offered on a pass/fail basis based on an evaluation of the student's performance on a single or series of graded materials or projects, all of the part-time courses are exempt of the GST/HST pursuant to section 8 of Part III of Schedule V to the ETA.
Similarly, based on the facts set out above, the courses that form part of the full-time diploma program are exempt of the GST/HST pursuant to section 8 of Part III of Schedule V to the ETA.
On April 1, 1997, the harmonized sales tax (HST) replaced the goods and services tax (GST) and the provincial sales tax (PST) in the three participating provinces of Nova Scotia, New Brunswick and Newfoundland with a harmonized tax rate of 15%. Example: Goods that are delivered or made available in a participating province are subject to the HST. To the extent that they are taxable supplies (which are not zero-rated), tax must be collected at the harmonized rate
This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to departmental interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.
Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-4157, or Ken Syer at (613) 954-7957.
Yours truly,
Kristine A. Allen, B.A., LL.B.
Educational Services and Indians Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate
| c.c.: |
Kristine Allen
Ken Syer
Marjorie Stevens |
| Legislative References: |
Section 8 of Part III of Schedule V to the ETA |
| NCS Subject Code(s): |
R-11915-7-2 |
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