ORST (PST) Purchases from Ontario Suppliers

Tax Exemptions Overview

Conditional Exemptions

Unconditional Exemptions

Purchases from Ontario Suppliers

Purchases from Suppliers outside Ontario

Self-assessing Ontario Retail Sales Tax

Governed by the regulations of the Ontario Retail Sales Tax Act, certain goods and services purchased for use within the Province of Ontario are taxable. Ontario suppliers are required to obtain a vendor's permit and to charge consumers provincial sales tax on taxable transactions. The general provincial sales tax rate is 8%.

Taxable services include:

  • delivery and handling charges
  • finance and interest charges
  • admissions to places of amusement (10% tax)
  • insurance
  • labour provided to install, assemble, dismantle, adjust, repair or maintain tangible personal property
  • the right to park a vehicle in a commercial parking space
  • telecommunications services
  • transient accommodation (5% tax)
  • warranties and maintenance contracts in respect of tangible personal property
  • rental and lease payments

Taxable Rentals or Leases
(ORST Guide 502)

An item that is taxable when sold to the end user is also taxable when rented or leased. Taxable items include:

  • charges to install, assemble or dismantle goods
  • collision damage waiver charges
  • delivery and handling charges
  • service contract charges
  • surcharges

Examples of Taxable Labour:

Business Equipment
Repairs to: calculators
  computers
photocopiers

typewriters

 
Clothing & Shoe clothing and shoe alterations & mending
Repairs including: skate sharpening
   
Furniture & Appliance furniture repair & reupholstery
Services: repairs to appliances & televisions
   
Motor Vehicle battery charging
Services: engine tune-up, oil change & lube
  repair & repainting of auto bodies
  tire installation, balancing & repair
  wheel alignment
rustproofing & finish protection

 

Miscellaneous: 

 

installation, configuration, modification or upgrade of a computer program
knife sharpening

piano tuning, guitar & violin restringing
  potted plant maintenance, if the planters are moveable
  refinishing, restoring, and retouching works of art including paintings,
  sculptures & artifacts
  repair & rewinding of motors, generators & transformers
  stain protection of items such as furniture and upholstery in motor vehicles
watch & jewelry repairs and maintenance 
   
Service Charges: Service and local travel charges associated with any of the above charges.

 

Local service charges are expenses during a normal working day for items such as mileage and meals, but do not include other expenses, such as hotel and airfare costs.

 

Examples of Non-taxable Labour:

Installation of Items which become built-in cupboards & appliances
Real Property: lighting fixtures & bulbs
  replacement windows
  water heaters & furnaces
   
Motor Vehicle Services: car washing & waxing
  diagnosis, safety inspections & emissions tests
  only when no other work is done at the same time
  lock-out services
  towing & emergency battery boosting
   
Personal Services: dry cleaning
  carpet, drapery & upholstery cleaning
  veterinary care
   
Repair and Maintenance building renovation
of Real Property: lawn maintenance & tree surgery
  painting, wallpapering, plastering & tilework
  plumbing & electrical work
  roofing
  work on central air conditioning & heating systems