University of Saskatchewan

Financial Services (FS)

Detailed listing - Tax application on revenue source

Internal Billings are charges to another Uni-fi CFOAPAL other than those with an organization code ‘9000’.

GST

PST

GST never applies on internal billings. PST rarely applies there are two exceptions

n/a

n/a

Two PST exceptions only

      1. The unit acquired the good PST-exempt as a good-for-resale

n/a

Y

      2. The good was ‘fabricated’ in-house

n/a

Y

If either of the above PST exceptions applies units must document their process for charging the PST on internal billings with the Manager – Taxation.

Gifts, Grants, Sponsorship

GST

PST

General Rule

n/a

n/a

Exceptions: Contributor receives a significant good or service – Note 1

External billings - exceptions

GST

PST

Provincial departments and certain qualifying agencies – Note 2

N

Y

Federal departments (including the RCMP) – Note 3

Y

N

Federal Crown corporations – Note 3

Y

Y

Client acquires the good or service for re-sale – Note 4

Y

N

Goods shipped and billed outside of SK – Note 5

Y

N

Goods shipped and billed outside of Canada – Note 6

N

N

Goods shipped to or services wholly performed on a reserve – Note 7

N

N

External billings –subject to the above exceptions

GST

PST

Comments

Accommodations (summer only – student rooms)

Y

N

GST exempt if fee is $20/night or less

Accommodations – year round – non-student rooms

Y

Y

GST exempt if fee is $20/night or less

Accounting Services

N

Y

Admission to amateur events where participants /performers are not remunerated (e.g., Huskie events; theatrical performances )

N

N

Admissions to non-amateur events, dinners and similar events with no official charity tax receipt issued (e.g., musical event where performers are professional)

Y

N

Admissions to non-amateur events, dinners and similar events with an official charity tax receipt issued

N

N

Advertising services

N

N

Designing an advertisement is PST-taxable. Signage, billboards; and other space rentals are GST-taxable

Athletic fees

Y

N

Books and other publications

Y

N

Catering services

Y

Y

Charters – inside Canada

Y

N

Charters – outside Canada

N

N

Childcare services – 14 years or younger

N

N

Childcare services – 15 years or older

Y

N

Children’s camp with no overnight supervision and it is expected that 50% or more of the participants will be 14 years or younger


N

N

Children’s camp with either supervised overnight stays or where it is expected that 50% or more of the participants are 15 years or older

Y

N

Clothing - Note 8

Y

Y

Conference / seminars / similar events (includes on-line programs)
- Note 9

Y

N

Courses – credit courses – in person or on-line courses

N

N

Courses - non-credit courses – in person or on-line courses
-Note 9

Depends

N

Refer to fact sheet on FSD’s website

Computer lab fees – printing services

Y

N

Computer Services (including repair services)

N

Y

Copies of additional reports

Y

N

Custodial and security services

N

Y

Dead animals

Y

Y

Live animals – Note 10

Y

N

Sale of donated goods

N

Y

Equipment rental

Y

Y

Farm products

Depends

Depends

Contact Manager – Taxation

Fee for service – per diem charge for faculty/staff time unless the fee is :

  (i) for staff to supervise or instruct in any recreational or athletic activity
      (other than a qualifying children’s program);

  (ii) to teach a GST taxable non-credit course

  (iii) in connection with catering services

GST applies to any of (i) to (iii)

N

Y

N

N

Fees to be a speaker at a conference or similar event

N

N

Fees to instruct a GST-taxable course

Y

N

Fees to instruct a GST-exempt course

N

N

Framing

Y

Y

Fundraising event – official charity receipt issued

N

N

Fundraising event – no official charity receipt issued

Y

N

Gaseous products

Y

Depends

For PST status - Contact Manager – Taxation

Gift certificates – Applicable taxes to be charged at the time the gift certificates are used.

n/a

n/a

Gifts – charity receipt issued

N

N

Investment income

N

N

Lab manuals

Y

N

Lab coats

Y

Y

Library and other fines

N

N

Licensing fees; royalties, etc.

N

N

Locker rentals

Y

N

Maps, mugs and other product sales (other than books and clothing)

Y

Y

Qualifying student meal plans – see Note 11

N

N

Non-qualifying meals – see Note 11

Y

Y

Basic groceries

N

N

Confectionary items – refer to SK Finance PST bulletin #PST-2 at:

http://finance.gov.sk.ca/revenue/pst/bulletins/PST-2%20Grocery%20and%20Drug%20Stores.pdf

Y

depends

Memberships

N

N

Organizing a conference for a third party (without UofS’ catering)

N

N

Organizing a conference for a third party (with UofS’ catering)

Y

N

Parking

Y

N

Plants/trees/shrubs/etc

Y

Y

Program event brochures

Y

N

Prototype products / machines

Y

N

Research contracts where contributor receives only services

N

N

Research contracts where contributor receives tangible items in return (e.g., access to campus labs, equipment; ownership of equipment transfers to contributor upon project completion, ‘free’ workshops; etc.)

Y

N

Research grants

N

N

Repair services

N

Y

Repair services to a prototype machine/ equipment

N

N

Room rentals and other space rental (e.g., booth rentals; greenhouses; etc.)

Y

N

Sponsorship, unless sponsor receives tangible items

N

N

Sponsorship where sponsor receives tangible items (space rental; right to put up billboard / other advertising products; booth rentals; etc.)

Y

N

Student fees – mandatory with credit courses

N

N

Student fees – non-mandatory

Y

N

Tournament entry fees

Y

N

Sale of used items from academic or research units

N

Y

Certain used vehicles are PST-exempt

Sale of used items from commercial units (e.g., consumer services)

Y

Y

Veterinarian and related technician services

N

Y

Some PST exemptions for farm livestock

Veterinarian products

Y

Y

Some PST exemptions for farm livestock

Contract price clause stipulates amount includes GST and / or PST. In this case, all taxes must be deposited into the appropriate tax CFOAPAL, unless the contract is amended Note 12

Y

Y

Tax collected in error must always be deposited into the correct tax CFOAPAL unless a credit memo is issued and the taxes collected in error are returned to the client Note 13

Y

Y

All invoices must disclose the university’s GST business number, which is 11927 9313RT. Also, if the good or service is GST-exempt, the following note must also be disclosed on the invoice:

“GST- exempt (public institution supply)” - Note 13


Note 1 – Gifts, grants and sponsorship

PST and GST does not apply to gifts, grants or sponsorship unless the contributor receives something tangible in exchange (e.g., conference tickets; free meals; booth rentals; room rental; access to labs or equipment; ownership of equipment transfers upon project completion; etc.). If the contributor is charged separately for these ‘tangible’ items, applicable PST and GST will apply to this separate fee. In cases where there is no separate fee some reasonable apportionment must be made where the tangible items account for 10% or more of the total contribution.

Note 2 - Billings to Provincial governments and qualifying provincial agencies

Saskatchewan (SK) provincial departments and certain provincial agencies do not pay GST provided a certification is retained on file (see sample certification below). Click here for a listing of exempt SK agencies. The exempt certification is often on the government’s purchase order. GST must be charged if the payment is made personally by a government employee, even if the employee will be reimbursed by their employer.

Alberta, Manitoba, Quebec (until 2013), Yukon and North West Territories also are exempt from GST provided a certification is retained on file.

B.C. (until March 31, 2013), Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, P.E.I. and Nunavut pay applicable GST/HST.

Sample certification:

This is to certify that the property and /or services ordered/purchased hereby are being purchased by

________________________________ and are not subject to GST/HST.

(Name of the provincial government department /agency)

 

_________________________________

Signed by Authorized Official

Note 3 – Billings to Federal government

Federal departments, including the RCMP are exempt from paying PST. Federal crown corporations pay PST.

If a federal government tells your unit that they do not pay GST, this is not the case. You can direct them to CRA’s website that clearly states that the Federal government pays GST (see - http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/txbl/sls/gvrnmnt/fdrl-eng.html ).

Note 4 – Goods and services acquired for resale

Certain clients may acquire the good or service for resale (e.g., another veterinarian who will re-bill the charge to their client); in this case, do not charge PST provided the following information is noted on the invoice: (1) the client’s SK PST vendor license number and (2) a note that the good or service is acquired for resale.

Note 5 – Goods shipped outside of Saskatchewan

Goods shipped outside of Saskatchewan are PST-exempt provided it is the university that ships the goods and evidence of shipment is retained on file (e.g., if a non-resident picks up a good or arranges the shipment, PST will apply).

Goods shipped to an HST province and / or on-line taxable-courses that are available for use in an HST province will be subject to HST (ON -13%; NB – 15%; NL – 15%; NS – 15% and PEI – 15% ). On-line exempt-courses are not subject to HST. See note 9 to determine if a course is GST-exempt or taxable.

Note 6 – Goods shipped outside of Canada

Goods shipped outside of Canada are GST-exempt provided evidence of shipment is retained on file (e.g., if a non-resident picks up a good or arranges the shipment, applicable GST applies).

Note 7 – Goods shipped to a reserve and services wholly performed on a reserve

Goods shipped by the university to a reserve and billed to a First Nations’ individual or band are exempt from PST and GST. Services wholly performed on a reserve and billed to a First Nations’ individual or band are exempt from PST and GST. Evidence of shipment must be retained on file plus the 10-digit Indian Status identification number for an individual.

Note 8 – Clothing

When childrens clothing is shipped to ON, NS or PEI, only the federal component of HST (e.g., the 5%) needs to be collected. The invoice must state the amount is net of the provincial clothing point-of-sale rebate. The HST exemption is available only on the sale of children size clothing. More details on qualifying items for the provincial component of HST is included in CRA’s publication GI-063 at: http://www.cra-arc.gc.ca/E/pub/gi/gi-063/README.html  

Shipments of childrens clothing to NB and NL are subject to the full HST rates (see note 5).

Note 9 – Seminar/workshop versus a course

For GST purposes, it is necessary to distinguish a course from a seminar/conference or similar event. GST will always apply to a seminar, conference or similar event; whereas, GST may or may not apply to a course.

Generally, the Canada Revenue Agency (CRA) will consider an event to be a ‘course’ only where the participants’ are graded and /or the participants’ competency in the course material is evaluated by some other means (e.g., the participants must complete an exam or mandatory assignments are due and evaluated ).

If you determine the program / event is not a course, GST applies in all cases.

If you determine the program /event qualifies as a course, it is GST exempt if the course is a degree or diploma requirement. Non-degree courses may also be GST-exempt but only if it falls within one of six exempt categories. For more details on the exempt categories see FSD’s website at: http://www.usask.ca/fsd/colleges_depts_research/taxation/fact_sheet_gst_courses_conference_workshops_seminars.php

The above analysis is required whether the program is offered in person or on-line. On-line programs have the same tax status as programs offered in person.

Once the tax status of the course is determined, it applies to all participants regardless whether they are taking the program for credit or not.

Note 10 – Live animals

Certain farm livestock that is ordinarily raised to produce or be used as food for human consumption and rabbits (other than pets) will be GST-exempt (e.g., cattle (even if used in research); sheep; goats; pigs; llamas; alpacas; buffalo/bison; geese; turkeys; ducks; chickens; elk and deer; honey bees; ostriches; emus and rheas; pheasants; partridges; quails; wild turkeys and squabs). Taxable animals include: mink, fox, and other fur-bearing animals; horses; donkeys and mules; pigeons and peacocks.

Meat supplied for human consumption is GST-exempt including animals that are taxable when sold alive (e.g., horse meat).

More details are included in CRA’s memorandum series 4.4 – Agriculture and Fishing at: http://www.cra-arc.gc.ca/E/pub/gm/4-4/README.html

Note 11 – Meals

A meal provided to a student enrolled at UofS under a meal plan is GST & PST-exempt provided:

All meals to non-students are GST & PST-taxable even if provided under a ‘qualifying’ plan

Note 12 - Contract price clause

In cases where the contract price indicates that it includes a specific $ amount as GST or PST (e.g., Contract price not to exceed $9,900, which includes GST of $471.23), the taxes (e.g., the $471.23) must be deposited into the correct tax CFOAPAL even if the contract was for GST-exempt and PST-exempt research services. In the latter case, it would be best to have the contract price clause amended to read contract price not to exceed $9,900 (inclusive of any applicable taxes, which for this contract is nil since the supply is PST-exempt and GST-exempt as a public institution supply).

Note 13 – Additional information

The University’s GST BN (11927 9313 RT) must be disclosed on invoices. Also, if the good or service is GST-exempt, the following note must also be disclosed on the invoice:

“GST- exempt (public institution supply)”

All taxes must be deposited into the university’s Tax CFOAPALS, even if collected in error. The only exception is where the tax was collected in error and refunded back to the customer with an appropriate credit memo or revised invoice retained on file.

The Tax CFOAPALs are:

GST

1-100052- unit’s organization code - 20101 – unit’s program code

PST

1-100134- unit’s organization code - 20103 – unit’s program code - (external sales)

1-100134- unit’s organization code - 20104 – unit’s program code - (internal sales)