Guide for Accounting for GST and PST
Introduction
Ryerson University, like most individuals pays GST and PST on most of the goods and services that they
buy. Ryerson University is also required to collect and remit these taxes to the Federal and Provincial
governments from most of their transactions.
Generally it is external transactions that will generate taxable sales. Infrequently an internal transaction
may generate a taxable sale. If you have any questions regarding the taxable status of an internal
transaction please contact the Senior Accountant in Financial Services.
This guide is designed to provide general directions in how to deal with GST and PST. For questions
regarding more complex issues relating to GST and PST, please contact the Senior Accountant in
Financial Services.
Table of Contents
1) GST
2) PST
3) Tax Table – GST and PST (Exempt/Taxable)
1) Goods and Services Tax (GST)
Introduction
The Goods and Services Tax (GST) is a federal tax that adds 5% tax to the value of taxable goods and
services made available (consumed) in Canada.
Any organization that provides taxable supplies in Canada and is not a small supplier is required to be
registered for GST purposes. As a registered organization, Ryerson is required to charge and collect GST
on all taxable goods and services that Ryerson University makes in Canada. The GST collected is then
remitted to Revenue Canada on a monthly basis.
Ryerson University belongs to a group of organizations known as the MUSH group – municipalities,
universities, schools and hospitals. Members of this group are entitled to a partial rebate of GST paid on
items purchased. Universities are eligible for a rebate of 3.35% (67% of 5%). The net GST cost to Ryerson
is 1.65% (33% of 5%).
Reporting GST
Under Income Tax law, universities are classed as public institutions and special rules apply for the
treatment of goods and services. The sale of most new goods is taxable and most sales of services are
exempt. One should refer to the attached summary (Tax Table – GST & PST) to determine if the sale is
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taxable or exempt. A sale may also be considered exempt based on the small trader status of the supplier.
A supplier has that status if its sales of taxable supplies do not exceed thirty thousand dollars ($3,000.00)
annually.
In certain situations, GST is applicable but has not been assessed by the supplier. This is the case of
foreign suppliers.
Some foreign suppliers are registered and do collect GST.
In addition, when goods, as distinct from services, are purchased from a foreign supplier, these items
must pass through customs. Canada customs, acting as an agent for the Canada Revenue Agency (CRA),
will assess and collect GST where appropriate.
A copy of the invoice should be included with the shipment of foreign goods. Customs can then
determine if the supplier has charged GST. If it is not clear, Customs will assess GST. This could lead to
the university being charged GST twice on the same goods.
Once a sale is found to be taxable, one must then consider the overriding exemption provisions found
below to determine the sale remains taxable.
Overriding Exemptions GST
1) The goods or services are exported outside of Canada.
2) The sale of Goods or Services to Provincial Governments and their recognized bodies (note:
Federal and municipal governments will pay GST).
3) Sales are made for nominal consideration (Direct cost recovery)
 Nominal charge refers to an amount equal to or less than the direct cost of the goods and
services purchased, less the GST rebate of 3.35%.
 Direct cost does not include administrative or overhead expenses or employee salaries
incurred in providing taxable goods or services.
 If the goods and services are sold to recover the purchase price plus additional costs, GST
will apply to the transaction.
GST and Fundraising
When the university charges admission to a fund-raising dinner or a like event, and part of the amount
received represents a donation for which an official income tax receipt may be issued, the entire amount
paid will be exempt from GST.
Property or services supplied by the university in the course of a fund-raising activity (which excludes
admissions to a gambling event) will be exempt provided that these supplies are not made available nor
does the recipient receive these supplies on a regular or continuous basis throughout the year or for a
large portion of the year.
Admissions to gambling events (bingos and casino nights) are exempt if the University meets both of the
following conditions.
 90% or more of the administrative functions and taking of bets are carried out by volunteers;
and
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
for a bingo or casino event, the games are not held in a commercial hall or any other place
used primarily for gambling activities.
If the university operates their own Bingo and Casino nights, they do not charge GST on the sale of Bingo
cards or on bets taken during the event. If a commercial Bingo hall runs the event for the university, the
admission fees will be taxable.
GST and Research
All goods and services purchased for a Research project will be subject to GST. Salaries paid to research
staff or graduate students are not subject to the tax. GST will be paid on such items as travel, equipment
purchases, consumable supplies and outside consultants (who have a GST registration number).
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2) Provincial Sales Tax (PST)
Introduction
The Provincial Sales Tax (PST) can be referred to as the Retail Sales Tax (RST), the Ontario Sales Tax
(OST) or the Ontario Retail Sales Tax (ORST). It is a consumer tax imposed on the purchaser (consumer)
of tangible personal property and certain services, consumed within the Province of Ontario under the
authority of the Ontario Retail Sales Tax Act (ORST). Tangible personal property is personal property that
can be touched, seen, weighed, measured, or is perceptible to the senses.
Provincial Sales Tax (PST) is a tax imposed by the provincial Government at the retail price level. As a
holder of a vendor permit, Ryerson University is required to charge PST on taxable sales and remit these
taxes to the province of Ontario
Tax Rates
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8% for most goods and taxable services
5% for transient (Hotels, motels, etc.) accommodation
10% for admission to places of amusement and sales of alcohol
12% for alcohol sold by the LCBO
Types of Sales for PST Purposes
Taxable Sales
Generally, all goods (Tangible Personal Property) are taxable if they have a value of more than $0.21.
Some services are also taxable:
 Labour to repair goods (tangible personal property)
 Admission charges over $4.00 (not amateur sports events and other events where the performers
are not paid)
 Craft and trade show admissions (unless it has restricted access to certain groups like university
exhibits where there is an invitation list)
 Exhibits or shows on campus
 Labour to dismantle a booth, store a booth, transport a booth outside or inside of Ontario
 Rental of equipment such as a forklift, airfare for installers going outside of Ontario
 Labour to install plumbing or electrical (charges must be separated on invoice)
 Parking - unless provided as part of accommodation rent in excess of 30 days.
 Transient Accommodation
Exclusion to the definition of transient accommodation includes:


Lodging supplied to students, patients, residents, or employees of educational institutions
Lodging where the daily charge is less than $10.00, or the weekly charge is $70.00 or less.
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Unconditionally Exempt Sales
Goods, such as food products and those listed below, are unconditionally exempt under the Act.
Purchases of these types of goods do not require an exemption certificate.
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Food products for human consumption – not confections or prepared foods
Coal (includes barbecue coals and briquettes )
Coke (fuel)
Wood
Natural Gas
Electricity
Conditionally Exempt Sales
Goods for resale and those listed below, are conditionally exempt under the Act. If a purchaser wishes to
purchase these types of goods without the payment of PST they must prepare an exemption certificate
indicating the reason why. This document must be submitted to the vendor with their purchase order.
The vendor is then required to maintain the exemption certificate on file for possible future review by the
Minister of Revenue of Ontario.
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Goods for “resale’ under vendor permit (G number)
Books and publications purchased by universities
Local telephone service if the charge does not exceed $0.25
Tangible personal property to be shipped by the vendor outside Ontario
Newsletter and bulletins
Works of art purchased by an art gallery 50% of the revenue provided by public donations
Computer programs designed and developed to meet specific requirements
In order for the goods to be exempt from PST, the acquisition must be made by the university
and not privately such as by a staff or faculty member.
Guidelines for the Purchase of Equipment for Research Purposes Exempt of the PST/ORST
The following is the wording of the Ontario Ministry of Revenue of the Retail Sales Tax Act, Subsection 7
(1) 18 as it relates to exempt purchases by Ontario universities:
“Equipment purchased by the governing body of a university that is designed for use, and is
used exclusively in research or investigation, and repair parts thereof, but the exemption
conferred by this paragraph does not apply to any equipment, or repair parts thereto, or labour to
install such parts or equipment, where the equipment is used in the instruction to students, or to
any type of class of equipment that is prescribed by the Minister to be excluded from this
paragraph, or repair parts for such equipment, or the labour to install such equipment or repair
parts.”
The following is a general guideline relative to the wording of the act:
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“…equipment (that is) designed for use and is used exclusively in research or investigation…”
the term “designed’ is used in regulation 7(1)18 in reference to equipment for research and
investigation, and is to be interpreted as “meant for use, or sold for that purpose”.
EQUIPMENT IS INTERPRETED TO INCLUDE UTENSILS, INSTRUMENTS, APPARTUS AND
EQUIPMENT ANCILLARY THERETO. ALSO INCLUDED IN THIS CATEGORY ARE:
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


Glassware and plasticware Manufactured skeletons and like products
Computers and related peripheral equipment, including terminals, printers, modems, etc.
Audio and video tapes and diskettes
Disposable items capable for reuse, e.g. glassware, Petri dishes, culture dishes and bottles,
pipettes, weigh boats, etc.
In general, laboratory items of a scientific nature, sold by scientific supply houses
Note: Off-the-shelf software, whether sold under license or not, is subject to tax. Software
specifically designed for and used in research by a university, would qualify for exemption.
Custom and specialty software is subject to tax exemption under certain situations.
Customization costs must equal or exceed the initial costs of acquisition.
Repair parts for equipment designed and used exclusively in research, is interpreted to include
articles and materials for use in the fabrication of research equipment.
Items that do not qualify for exemption
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
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ANYTHING that is not used 100% in research. This means no mixed applications such as
research and teaching
Generally, any disposable or consumable supplies.
Goods purchased without an end use certificate. (i.e. without a purchase order stating the
end use is for exclusive use in research or investigation as per the ORST act.)
Purchasing card acquisitions are all taxable unless you provide a purchase exemption
certificate.
Chemicals
Gases
Laboratory or office equipment
Office equipment
Computer supplies such as paper or toner
General use equipment and supplies including photographic, audio visual
Equipment or supplies used in any teaching or administrative activities
Self-Assessment
It is the responsibility of the collector of the tax to pay the government. However, when no PST
is collected from the university it is the university’s responsibility to pay the tax. To do this you
must “self-assess”. If an invoice indicates that no PST was charged where there should have been,
you would either request a corrected invoice indicating PST or self-assess. Self-assess upon
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making payment by applying the proper tax code. Some companies outside Canada are
registered for GST and also collect Ontario PST. Their invoices should clearly indicate which
taxes they collect.
Exemption certificate for Scientific Equipment
A blanket certificate is valid for four years or until cancelled, whichever occurs first. If a
purchase order is issued, a “reference’ to the blanket certificate issued for the items, must be
typed, written or stamped on the purchase order.
If the purchaser is a vendor who in the future will be making additional purchases of the items
listed below, the word “Blanket” should be inserted in front of the words “Purchase Exemption
Certificate” at the top of this form and he will not be required to complete certificates for
subsequent purchases of the same items.
Internet Services and Sales
Not subject to PST:
 Membership or subscription fees to access the internet
 Internet E-mail services
 Live chat or conferencing sessions directly on the internet
 Technical assistance or support over the phone, electronically, or even in person but not
hands-on
 Web hosting services
 Real-time streaming video and/or audio
 Internet access fees do not attract the PST if they are charged and billed separately.
Subject to PST:
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

Telecommunications services provided to access the internet attracts the PST
Rental of computer equipment and license fees are PST applicable
When your invoice contains one fee or combined services fees then the entire invoice amount
is PST applicable
Web Page Design Services
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
Web based design is not a PST applicable service unless there is an executable computer
program within the site
When there is an applet in the design, it is not considered an executable program because it
needs a browser to interpret it, therefore it is not PST applicable
When a web page has an executable computer program then the entire web page design is
taxable. The charges cannot be split to avoid the PST.
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Purchases via the Internet
Taxable goods or services purchased or sold on the net are taxable if bought in Ontario,
regardless of location. If you purchase the “right to use “a computer program downloaded from
the internet, the fee is taxable. Some examples of programs are games, spread-sheet programs,
word processing, data base and upgrades. Information acquired from the internet such as from
an on-line encyclopedia or a reference library is not subject to the PST. Access to information is
not taxable.
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3) Tax Table – GST and PST
To determine if a sale should contain GST or PST one must first consult the attached tax table
(Tax Table – GST and PST), which lists both taxable and exempt supplies of goods and services
for both GST and PST purposes. If the sale is taxable, one must consider the overriding
exemption provisions listed above to again determine if it is exempt or taxable.
A
Accomodation
 Short term (less than 30 days) and over
$20.00/day or $140/week
 Long term (30 days or over) with
continuous occupancy
Administration fees
Admission to places of amusement and recreation,
professional performances, etc.
Alcoholic beverages
Appliance rental
Application fee
Aptitude testing service
Art supplies
Athletics Memberships
 Compulsory fee included in tuition
 Other (staff, alumni, etc.)
Audio Tapes
 Production (i.e., recording, editing, etc.)
 Duplication
Audio visual equipment rental
GST
STATUS
PST
STATUS
Taxable
Exempt
Taxable @ 5% regardless
of cost
Exempt
Exempt
Exempt
Exempt
Taxable
Taxable
Exempt
Exempt
Taxable
Exempt
Taxable @ 10%
Taxable
Exempt
Exempt
Taxable
Exempt
Taxable
Exempt
Exempt
Exempt
Taxable
Taxable
Taxable
Taxable
Taxable
Taxable
Taxable
Exempt
Taxable/Exempt
Taxable
Exempt
Taxable
Exempt
Taxable
Taxable
Exempt
Taxable
B
Beverages
Binding service (varying PST rules apply,
Phone for clarification)
Books (published for educational, technical, cultural or
literacy purposes and contain no advertising)
Books (blank exercise books, catalogues, directories
rate books, etc.)
Books (used or donated text books)
Building Materials
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C
GST
STATUS
PST
STATUS
Carrel Rentals
Catering
Certified Copy of Academic Documents
Child Care Services
Classroom Supplies
Clothing
Coin-Op Photocopier Services
 $0.20 or less per transaction
 greater than $0.20 per transaction
Coin-Op Laundry Service
Commissions from Vending Machines,
Ticket Sales, etc.
Computers
 Mainframe Rental
 Personal, sale of
 Supplies (papers, diskettes
manuals, etc.)
Confectionery
Conferences (refer to GST Bulletin #8
for complete details)
Consulting Services
Convocation Fees
Counseling Services
Course Descriptions (Individual)
Course Manuals
Courses: Credit (refer to GST Bulletin #8
for complete details)
Cover Charges
Taxable
Taxable
Taxable
Exempt
Taxable
Taxable
Exempt
Taxable
Exempt
Exempt
Taxable
Taxable
Exempt
Exempt
Exempt
Exempt
Taxable
Exempt
Exempt
Exempt
Taxable
Taxable
Taxable
Taxable
Taxable
Taxable
Taxable
Taxable
Taxable
Exempt
Exempt
Exempt
Taxable
Taxable
Taxable
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Taxable
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Taxable
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
D
Damage Fees (student)
Day-Care Services
Desktop Publishing Service
Diagnostic Testing Services
Diploma Replacement
Donated Goods
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D (cont’d)
GST
STATUS
PST
STATUS
Drugs, Prescription
Duplicate T2202A
Exempt
Taxable
Exempt
Exempt
Taxable
Exempt
Exempt
Taxable
Exempt
Exempt
Exempt
Taxable
Exempt
Exempt
Fax Services
Field Trip Fees (course-related)
Film Processing Service
 Where client brings in goods for production
 Where university originates, produces and
Exempt
Exempt
Exempt
Exempt
Exempt
Taxable
sells goods to customers
Fines (parking, library, etc.)
Food
 Basic Groceries (bulk food sales)
 Student Meal Plans (meeting minimum
dollar value)
 Snacks and prepared foods
 Other (restaurant meals, etc.)
Fund Raising Dinners/events (varying tax rules,
Phone for clarification)
Taxable
Exempt
Taxable
Exempt
Exempt
Exempt
Exempt
Taxable
Taxable
Exempt
Taxable
Taxable if Over $4.00
E
Equipment Rentals
 Includes audio visual, laboratory, musical instruments
Furniture, etc.)
Eggs (basic grocery)
Examination Scripts
Exported Goods and Services
 Consumed outside Canada
 Consumed outside Ontario
F
Taxable/Exempt
Taxable/Exempt
G
Giftware
Gift Certificates
Graduate Referral Service
Taxable
Exempt
Exempt
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Taxable
Exempt
Exempt
G (cont’d)
Graphic Art Service (varying PST rules apply,
Phone for clarification)
GST
STATUS
PST
STATUS
Exempt
Taxable/Exempt
H
Health and Beauty Aids
Taxable
Housing Rentals
 Long-Term (30 days or over) with continuous occupancy Exempt
 Short-Term (under 30 days)
Taxable
Taxable
Exempt
Taxable
I
Ice Cream
 Single Serving
 Bulk (basic grocery)
Ice Rentals (Athletics)
ID Cards (Original and Replacements)
Inter-Library Loan Service
Internet Services
Taxable
Exempt
Taxable
Taxable
Exempt
Exempt
Taxable
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Taxable
Taxable
Exempt
Exempt
Taxable
Exempt
Taxable
Taxable
Exempt
Taxable
Exempt
Exempt
Exempt
Taxable
Exempt
Exempt
Exempt
Taxable
Taxable/Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
L
Lab Analysis Service
Lab Coats
Lab Manuals
Laminating Service
Land Sales (generally taxable although tax rules vary,
phone for clarification)
Laser Printing Service (varying PST rules apply,
phone for clarification)
Laundry Services
Laundry, Coin-Op
Lecturing (on behalf of the University, not privately)
Letters of Permission
Library Overdue Book Fines
Literature Searches
Loans (financial)
Locker Rentals
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M
GST
STATUS
PST
STATUS
Manuals – Lab, Classroom, Computer
Mailing Labels
Meal plans – Student (meeting minimum dollar value)
Meat (basic grocery)
Medical devices
Meeting Rooms
 Long-Term (30 days or over) with continuous occupancy
 Short-Term (under 30 days)
Milk (basic grocery)
Taxable
Taxable
Exempt
Exempt
Exempt
Exempt
Taxable
Exempt
Exempt
Exempt
Exempt
Taxable
Exempt
Exempt
Taxable
Exempt
Taxable
Exempt
Taxable
Taxable
Exempt
Taxable
Taxable
Taxable
Exempt
Taxable
Exempt
Exempt
Exempt
Taxable
Exempt
Exempt
Taxable
Taxable
Taxable
Taxable
Exempt
Taxable
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Taxable
Taxable
N
Non-Credit Course Fees (refer to GST Bulletin #8
For complete details)
O
Office Supplies
Overhead Transparencies
 Where client brings in goods for production
 Where University originates, produces and
sells goods to customers
P
Parking
 For Resident Students
 All Other
Patents
Pet Diagnostic Services
Pet Food
 Prescription
 Non-Prescription
Pharmaceuticals
 Prescription
 Labeled for veterinary or agriculture use
Photocopies
 If total charge is $0.20 or less
 If total charge exceeds $0.20
Photographic Services (also see Film Processing Service)
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P (cont’d)
GST
STATUS
PST
STATUS
Plants, Trees and Shrubs
Printing Services (varying PST rules apply,
phone for clarification)
 Where client brings in goods for production
 Where University originates, produces and

sells goods to customers
Psychological Testing Services
Taxable
Taxable
Exempt
Taxable/Exempt
Taxable
Exempt
Taxable/Exempt
Exempt
Exempt
Taxable
Exempt
Exempt
R
Recreational Instruction
 Primarily for those 14 years of age
 All Others
Rentals, Equipment
Audio-Visual, laboratory, musical instruments,
furniture, etc.
Research Contracts (refer to GST Bulletin #3 for details)
Residence Fees, Student
Right to use Computer Terminals
Royalties
Taxable
Taxable
Taxable/Exempt
Exempt
Exempt
Exempt
Taxable
Exempt
Exempt
Exempt
S
Seminars (refer to GST Bulletin #8 for complete details)
Skate Sharpening Service
Slide Production
 Where client brings in goods for production
 Where University originates, produces and
sells goods to customers
 Custom designed, single copy
 Produced and sold in quantity
Space Rentals, Room Rentals
 Long term (30 days or over with
continuous occupancy)
 Short term (under 30 days)
Sporting Goods
Statement of Attendance
Stationery
Subscriptions for magazines, journals, & similar publications
Survey Research Services
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Taxable
Exempt
Exempt
Taxable
Exempt
Taxable
Taxable
Exempt
Taxable
Taxable
Exempt
Taxable
Exempt
Taxable
Taxable
Taxable
Taxable
Taxable
Exempt
Exempt
Exempt
Taxable
Exempt
Taxable
Exempt
Exempt
S (cont’d)
GST
STATUS
PST
STATUS
Swimming Pool Rentals
Taxable
Exempt
Exempt
Exempt
Taxable
Exempt
Exempt
Taxable
Taxable
Taxable
Exempt
Exempt
Exempt
Exempt
Exempt
Taxable/Exempt
Exempt
Taxable
Taxable
Taxable
Exempt
Taxable
Exempt
Exempt
Exempt
Taxable
Taxable
Taxable
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
T
Telephones
 Line and Equipment Rental
 Direct cost recovery for personal by staff, faculty
Tickets
 To amateur performances or competitions
 To professional performance or competitions
Towel and Gym Apparel Rental
Transcripts
Typesetting Services (varying PST rules apply,
phone for clarification)
U
Used Goods
 Sale of goods previously used in non-commercial
Operation, academic dept’s
 Sale of goods previously used in a commercial
operation such as hospitality services
V
Veterinary Services
Veterinary Supplies
Video Tapes
 Production
 Duplication
W
Website Design
Wool
Word Processing Service
Writing Services
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