Related services are services provided to goods, or services provided to install goods. Generally, if a good is taxable when purchased (e.g. a motor vehicle), services provided to that item (e.g. vehicle repair and maintenance) are also taxable, unless a specific exemption applies.
Do I charge PST for services?
Yes, if your business resides in a province that has a provincial sales tax, or retail sales tax (RST) as it is also called, you will have to charge, collect and remit PST unless you are selling a product or service that is PST exempt, in most cases.
Are professional services taxable in BC?
Non-taxable sales & services
Sales and rentals of real property (e.g. house, commercial property) Public and private campsites. Admissions and memberships. Professional services (other than legal services)
Are extended warranties taxable in Canada?
Warranty and maintenance contracts for real property are subject to tax. Since tax applies to the sale of the extended warranty or maintenance contract, PST does not apply to parts or labour used to repair the real property when those repairs are completed under the terms of the contract.
Does BC PST apply to services?
Yes, you must charge PST on all taxable goods and services you sell in B.C., unless a specific exemption applies. There are no general exemptions that apply if you sell goods or services in B.C. to customers that live outside B.C. (e.g. tourists).
What services are exempt from GST in Canada?
Exempt supplies
- a sale of housing that was last used by an individual as a place of residence.
- long-term rentals of residential accommodation (of one month or more) and residential condominium fees.
- most health, medical, and dental services performed by licensed physicians or dentists for medical reasons.
Do you have to pay tax on service charge?
Tax and discretionary service charges
No VAT is payable on discretionary service charges. For tax and National Insurance purposes, a discretionary service charge is deemed to be a tip.
Are all services taxable in Canada?
Most businesses in Canada have to collect the goods and services tax (GST)/harmonized sales tax (HST) on taxable supplies of property (goods) and services made in Canada, including many supplies of real property, like buildings and land, and intangible personal property, such as intellectual property rights, admissions
Which services is not included in taxable services?
Table of contents
- Employee Services under Employment Agreement.
- Services by Court or Tribunal.
- MP or Person in a constitutional post or government post.
- Funeral and related services.
- Sale of land and/or completed building.
- Actionable claims apart from the lottery, etc.
- Sale from and to Non-taxable territories.
What services are exempt from service tax?
General Service Tax Exemptions
Any service that is offered to any international organisation or to the United Nations is exempt from service tax. Any service that is offered to units of Special Economic Zones or to Special Economic Zone developers is exempt from service tax.
What benefits are not taxable in Canada?
Typical non-taxable benefits include:
- Subsidized meals in an onsite cafeteria.
- Meals or allowance provided for working overtime (unless it’s a regular occurrence)
- Fees from personal use of the internet or a cell phone (as long as it doesn’t exceed what’s included in a basic, fixed-cost plan)
Is a warranty taxable in Ontario?
Purchases of Taxable Goods
PST applies to the total purchase price of taxable goods including any charges for a warranty or agreement for the goods that a purchaser must pay (or agree to pay), whether or not the charges are separately stated on the bill, invoice or receipt.
Is there HST on warranty?
CRA indicates that most new home warranties are GST/HST taxable.
What is considered B.C. public service?
They provide services, programs and policy expertise in areas like health care, public safety, education, and environmental management. The people who work here also represent our province’s diversity.
Who falls under B.C. public service?
Members of the public service are the politically impartial government employees who are responsible for carrying out the day-to-day activities of government and for delivering public services to the citizens of B.C.
Do you charge GST on cleaning services?
You need to report payments you make to contractors for cleaning services they provide on your behalf, unless you do not exceed the 10% GST Turnover Threshold and are therefore exempt from reporting.
Does GST apply to all services?
Goods and services tax (GST) is a tax of 10% on most goods, services and other items sold or consumed in Australia. If your business is registered for GST, you have to collect this extra money (one-eleventh of the sale price) from your customers.
Which goods and services are not subject to GST?
3.3 Non-Taxable Supplies
GST free items include most basic foods, some education courses, some medical and healthcare services, some utilities costs (water, sewerage and drainage), international transport and some childcare services.
Do I have to charge HST on my service based business?
If your business generates more than $30,000 in income, you’ll need to start collecting GST/HST from your clients.
Is a service fee considered income?
An optional payment designated as a tip, gratuity, or service charge is not subject to tax. A mandatory payment designated as a tip, gratuity, or service charge is included in taxable gross receipts, even if the amount is later paid by the retailer to employees.
Is service charge zero rated or exempt?
If you make a service charge it is standard rated. If a customer freely gives a tip over and above your total charge no VAT is due on the tip – it is outside the scope of the tax.” If you make a service charge, it is standard-rated.