GST/HST Rulings and Interpretations
Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Road
Vanier, Ontario
XXXXX K1A 0L5
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Subject:
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GST/HST INTERPRETATION
Counselling Services Provided by Registered Charities
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Dear XXXXX
Thank you for your letter of July 13, 1998 (with attachments), concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) as it applies to counselling services provided by registered charities.
Interpretation Requested
The XXXXX represents XXXXX member agencies. Some of those agencies provide mandatory counselling sessions as required under the Bankruptcy and Insolvency Act. In May 1992 you received an interpretation from our Department which advised that most services provided by charities are exempt from the GST. You have also included in your correspondence a letter we had written to XXXXX which came to the same conclusion.
Interpretation Given
Most supplies of property and services made by charities are exempt from the GST pursuant to the exemptions set out under Schedule V, Part V.1 of the ETA. Counselling services (whether they are mandatory or voluntary) are exempt from the GST pursuant to section 1 of Part V.1 of Schedule V of the ETA.
The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the Department with respect to a particular situation.
Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-0329.
Yours truly,
Gabrielle Nadeau
Charities, Non-Profit Organizations Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate
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P. Bertrand
M. Place
G. Nadeau |
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