Taxable Sales

The supply of a good or service (including zero-rated supplies) is said to be a taxable supply if it is subject to GST or QST and is made in the course of commercial activities. GST at the rate of 5% and QST at the rate of 9.5% apply to the supply, unless it is exempt or zero-rated.

Supplies that are subject to 5% GST and 9.5% QST include the following:

tools sold to a business specialized in the repair of small motors, as well as lawnmowers sold by the business;
moulds sold to a bakery, as well as chocolates sold by this bakery;
computers sold to a law firm, as well as legal services provided by the firm;
sales of new residential complexes;
sales and rentals of commercial buildings;
retail automobile sales and automobile rentals;
sales of gasoline and automobile repair services;
sales of soft drinks, candy and potato chips;
sales of clothing and footwear;
the rental of hotel accommodations for a night;
the provision of barber and hairstylist services;
sales of printed books that have an International Standard Book Number (ISBN), in the GST system only.