Tax-exempt products and services

Most products and services sold by educational and healthcare institutions and other public sector bodies are exempt under the GST and QST systems. That includes:

• foods and beverages prepared for elementary- or secondary-school students and served in the school cafeteria, or at extra-curricular activities organized by the school;
• meals served to students registered at a university or a public college, under a plan providing for 10 or more meals a week, for one month or longer, to be eaten at a restaurant or cafeteria of the university or college;

• foods and beverages (including those supplied by catering services) supplied to a school authority, where the seller is responsible for serving the foods and beverages offered primarily to students using an elementary- or secondary-school cafeteria;
• foods and beverages (including those supplied by catering services) supplied to a university or public college, where the foods and beverages are sold to students under a plan providing for 10 or more meals a week, for one month or longer;
• foods and beverages served by a public sector body in a place where recreational activities are held for the underprivileged or the mentally or physically disabled;
• foods and beverages sold by a public sector body under a program to relieve poverty, suffering or distress (but not foods or beverages supplied as part of a fundraising activity);
• prepared foods and beverages sold to aged, infirm, disabled or underprivileged persons in their place of residence under a program established for that purpose (foods and beverages sold on behalf of a public sector body as part of such a program are also exempt);
• foods and beverages served to patients and residents of healthcare institutions.

Taxable products and services

The following products and services sold by educational and healthcare institutions and other public sector bodies are taxable under the GST and QST systems:

• all foods and beverages sold from vending machines, other than from machines that accept a single 25-cent coin (or a coin of lesser value) per transaction;

• beverages, chips and other snack foods sold to elementary- or secondary-school students in the school cafeteria, or at extra-curricular events organized by the school;
• foods and beverages served at receptions, private meetings and other special events taking place in educational institutions;
• foods and beverages sold in hospital cafeterias and in public sector buildings (government office buildings, for example);
• confections and snack foods;
• carbonated beverages, alcoholic beverages, and fruit-flavoured or fruit-juice beverages containing less than 25% natural fruit juice.