ORST (PST) Self-assessing Ontario Retail Sales Tax

Tax Exemptions Overview

Conditional Exemptions

Unconditional Exemptions

Purchases from Ontario Suppliers

Purchases from Suppliers outside Ontario

Self-assessing Ontario Retail Sales Tax

If taxable goods and services are purchased for the University's use from an out-of-province vendor or supplier who does not charge and collect the Ontario Retail Sales Tax, the University is required to self-assess and remit the ORST(PST) on the total value, in Canadian dollars, on these purchases. Accounts Payable will calculate the tax owing and charge it to your department.

Some out-of-province suppliers have registered with the Ontario government to charge and collect ORST(PST). If this is the case, they will include ORST(PST) on their invoices.

Common imports on which Ontario Retail Sales Tax should be self-assessed include:

  • taxable goods and services received from other Canadian provinces
  • taxable goods and services received from foreign suppliers 
  • insurance premiums
  • promotional literature
  • promotional premiums
  • samples
  • taxable computer software and related maintenance agreements
  • maintenance agreement on One-Card System 

There is no requirement to self-assess ORST(PST) on labour in respect of goods sent outside of Ontario for repair. However, ORST(PST) must be self-assessed on the value of the repair parts when the goods are brought back into the province and repair or replacement of goods covered by a maintenance agreement or under warranty are not taxable. Tax is paid on the maintenance agreement.