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HST on SFU Purchases and Sales. Prepared by: Sabina Diaconescu Larry Guthrie Financial Services. Tax Components & Rebates. 5% CVAT (Canada Value Added Tax) +7% BCVAT (BC Value Added Tax) 12% HST 67% rebate on CVAT for universities

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hst on sfu purchases and sales

HST on SFU Purchases and Sales

Prepared by:

Sabina Diaconescu

Larry Guthrie

Financial Services


tax components rebates
Tax Components & Rebates

5% CVAT (Canada Value Added Tax)

+7% BCVAT (BC Value Added Tax)

12% HST

  • 67% rebate on CVAT for universities
  • 75% rebate on PVAT for universities
  • Net of HST after rebate

5% - (5% x .67) + 7% - (7% x .75)= 3.40%

  • Point of Sale Rebates eliminate BCVAT
  • Zero – Rated and Educational Exempt purchases have no HST
  • 100% input tax credit on HST if for resale
  • Rebate and ITC’s are HST deducted to only charge net cost to department accounts


point of sale rebates on bcvat i e vendor does not change 7 bcvat
Point of Sale Rebates on BCVAT(i.e., vendor does not change 7% BCVAT)
  • Gasoline, diesel fuel, bio-fuel components for motor vehicles, boats and aircraft
  • Books
  • Children’s sized clothing and footwear
  • Children’s car seats and booster seats
  • Diapers
  • Feminine hygiene products

Note: 5% CVAT applies where applicable


gst hst exempt supplies i e no hst is charged
GST/HST Exempt Supplies (i.e., No HST is charged)

Zero-rated supplies

Educational exemptions

Common Items:

Credit courses and programs

Supplies by some public bodies

Trade or vocational instructions

Camp fees

Sales at nominal value

Meal plans

Library services


Supplies by charities

  • Prescription drugs
  • Medical Devices
  • Basic Groceries
  • Exports of goods and services
  • Travel Services
  • Agriculture and fishing


place of supply rules
Place of Supply Rules
  • Place of Supply Rules determines the provincial tax component on buying or selling transactions
  • B.C. is SFU’s normal place of supply with the notable exception of when there is travel outside of B.C.
  • Travel expense claims completed through self-service will correctly calculate rebate based on the location of purchase selected.
  • Imports – GST only taxed at the border, must self assess for BCVAT
  • Interprovincial tax application


hst place of supply rules determine when to charge tax at 5 12 13 13 5 or 15
HST – Place of Supply Rules - determine when to charge tax at 5%, 12%, 13%, 13.5% or 15%

Services–tax rate based on recipient of supply address:

If no address obtained, then Canadian portion of where work is primarily performed

Exceptions for Services where work is done in respect to:

  • Real Property – based on primary location
  • Tangible Personal Property – based on place TPP located
  • Personal services – based on place of performance and if >90% performed in physical presence of individual to whom the service is rendered
  • Location-specific event – based on location of event
  • Transportation services: passenger based on where the journey starts, freight based on destination
  • Custom brokerage – based on place goods released for commercial imports or based on residency of importer for non-commercial imports
  • Postage & mail delivery – based on place purchased unless price >$5 and item is sent to non-HST province
  • Litigation, Trustee fees – based on province proceeding held
  • Computer related services & internet access – based on location of end user
  • Other – Telecommunication, air navigation, rolling stock


hst property services brought into bc for use in bc
HST – Property & Services brought into BC for use in BC

Requirement to Self-Assess

- 7% BCVAT on purchases made from non-participating provinces

- 7% BCVAT on outside Canada purchases (ex. US equipment, Livingston, Fedex)

- 12% for Intangible Purchases (consulting services, software)

No Self – Assess

- Purchase made in another HST province or full HST paid on entry to Canada

- If the good/service imported is for use exclusively in commercial activity

Canada Customs collects duty & tax

- 5% federal GST on all imports excluding exempt or zero-rated goods

Note * Provincial portion of HST not collected on commercial imports, MUST self-assess provincial portion

Note ** Items sent by mail valued at <$20 not taxable


interprovincial transactions
Interprovincial transactions

Example – Employee travels to a 3 days conference in Ontario and makes a 2 day stop to University of Alberta for a meeting.

Upon his return the employee completes an expense claim

  • $1,130.00 conference fees ($1,000 + $50 CVAT +$80 OVAT)
  • $ 315.00 hotel accommodation in Calgary ($300 + $15 GST)
  • $ 63.00 restaurant meals in Calgary ($60 + $3 GST)
  • $ 339.00 hotel accommodation in Toronto ($300 + $15 CVAT +$24 OVAT)
  • $ 101.70 restaurant meals in Toronto ($90+ $4.50 +$7.20 OVAT)
  • $ 22.40 Vancouver airport taxi ($20 + $1CVAT + 1.40 BCVAT)

Note the complexity of applying different provincial tax rates

The Place of Supply Rules determine which tax (5%, 12%, 13% or 12.5%) apply. The 75% BC Rebate only applies to purchases where BC is the “place of supply”


hst on sales
HST on Sales

SFU is registered for HST purposes

If all revenue in cost centre is taxable, the rebate/input tax credit applying to the cost centre should be 100%

HST should be charged as a combined 12% rate on the invoice, to showing federal and provincial components is optional

Invoices should show the total amount of HST charged or that the amount payable for each taxable item that includes HST at 12%


useful websites
Useful websites
  • http://www.sfu.ca/finance/hst_information/
  • www.gov.bc.ca/hst
  • www.fin.gc.ca
  • www.fin.gov.bc.ca
  • www.gov.bc.ca/rebates_exemptions


Sabina Diaconescu [email protected]/778-782-7255

Debbie Castagner [email protected]/778-782-6899