Exempt Sales or Supplies

You must not collect or remit tax on exempt supplies or sales, since these supplies are not subject to GST or QST.

In addition, exempt supplies do not entitle you to claim input tax credits (ITCs) or input tax refunds (ITRs), even if the taxable goods or services are acquired to make an exempt supply.

Note that exempt supplies are not taken into account in determining whether or not a person must register for the GST and QST.

Exempt supplies include the following:

  • sales of most residential complexes that are not new
  • the provision of most health, education, childcare and legal-aid services
  • the provision of certain services by public sector bodies (for example, governments and public service bodies)
  • the provision of most financial services

Special rules for public service bodies

Supplies of goods and services made by public service bodies (PSBs) are generally taxable supplies. However, supplies made by PSBs can be exempt supplies under certain conditions.

Regardless of whether or not they are GST and QST registrants, PSBs may claim a GST and QST rebate for public service bodies.

For more information, refer to Public Service Bodies – GST/HST and QST.


Supplies of goods and services made by charities are generally exempt supplies. However, supplies made by charities can be taxable supplies under certain conditions.

For more information, refer to Rules for Charities.

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