Answers · Topic 3 of 10
GST/HST answers.
When to register, what is taxable, zero-rated or exempt, how input tax credits work, and the HST answers for specific services from haircuts to rent. 20 questions, each answered in the first paragraph.
By the AnalytIQ Accounting team · Last reviewed: September 6, 2026
Are dance lessons and music lessons GST/HST exempt?Music lessons are exempt from GST/HST under a specific carve-out in the Excise Tax Act, regardless of whether they are private one-on-one lessons or group classes.Can I claim input tax credits on meals and entertainment?Generally, you can claim an input tax credit for only 50% of the GST/HST paid on meals and entertainment, the same 50% limit that applies to deducting these expenses for income tax purposes.Do nail salons and estheticians charge HST?Yes.Do veterinarians charge HST on their services?Yes.How do I file and pay my GST/HST return?Most registrants file a GST34 return online through the CRA’s My Business Account or GST/HST NETFILE, on a monthly, quarterly, or annual schedule the CRA assigns based on revenue.How do input tax credits work?An input tax credit, or ITC, lets a GST/HST-registered business recover the GST/HST it paid on purchases used in its commercial activity by netting that amount against the GST/HST it collected from customers on the same return.Is there HST on car washes and detailing?Yes.Is there HST on commercial rent and residential rent?Commercial rent, such as office, retail, or industrial space, is a fully taxable supply, so a registered landlord charges 13% HST on it and a tenant that is itself registered can generally claim an input tax credit on that rent.Is there HST on gym memberships and fitness classes?Yes.Is there HST on haircuts and salon services in Ontario?Yes.Is there HST on insurance in Ontario?No.Is there HST on massage therapy in Ontario?Yes.Is there HST on prescription glasses and contact lenses in Ontario?No, prescription glasses and contact lenses are zero-rated, meaning no GST/HST is charged, when they are supplied on the written order of an optometrist, ophthalmologist, or other professional entitled to prescribe them.Should I register for HST voluntarily before I hit $30,000 in sales?It depends on who buys from you and how much GST/HST you already pay on your own costs.What are the penalties for filing GST/HST late?When you owe an amount and file late, the CRA charges a late-filing penalty.What is the difference between zero-rated and exempt supplies?Zero-rated supplies, such as basic groceries, prescription drugs, medical devices, and most exports, are taxed at 0%, which means no GST/HST is charged to the customer but the seller stays inside the GST/HST system and can still claim input tax credits on related costs.What is the quick method for GST/HST and who should use it?The quick method is an optional way to calculate what you owe on your GST/HST return: instead of tracking input tax credits on your purchases, you remit a set percentage of your HST-included sales to the CRA and keep the difference.When do I have to register for GST/HST?You must register for GST/HST once your worldwide taxable supplies, including zero-rated sales such as most exports, exceed $30,000 in a single calendar quarter or over the trailing four consecutive calendar quarters.Which groceries are taxable in Ontario?Most basic groceries, such as bread, milk, vegetables, meat, and coffee beans or ground coffee sold for home brewing, are zero-rated, so no GST/HST applies to them.Which province’s sales tax do I charge customers in other provinces?For goods, you generally charge tax based on the province the goods are delivered or shipped to.
Where we do the work
Rules at a glance · GST/HST
Not sure which applies to you? Get a free proposal or book 15 minutes.
Threshold$30,000 small supplierRegister once worldwide taxable sales pass $30,000 over four consecutive calendar quarters.
Key formGST34 / NETFILEMost registrants file online on a monthly, quarterly or annual schedule the CRA assigns.
Watch forExempt vs zero-ratedExempt supplies earn no input tax credits; zero-rated supplies charge 0% HST and still earn them.
Key deadlineAnnual filers: June 15Sole proprietors with a December year-end file the GST34 by June 15, balance due April 30.
What we take off your plate
Tax services for small business owners, handled.
- GST/HST registration timed to the $30,000 threshold, not a CRA letter
- Returns filed on the right schedule with every ITC you are entitled to
- T2 and owner T1s filed together, deadlines tracked
- GST/HST returns and instalments handled
- CRA letters and reviews answered for you
- Salary-versus-dividend plan reviewed every year
Mistakes we fix
Three things that go wrong for small business owners.
- Registering late and owing HST on months of sales that should have been collected already
- Claiming input tax credits on costs tied to exempt supplies like residential rent or health services
- Charging 13% HST on an interprovincial sale instead of the destination province’s rate
Recognise one? Book a call and we will tell you what it is costing you.
How we can help · GST/HST
Where we do the work.
Fixed fees, quoted after a short discovery call. Canadian and US filings under one roof.
Tax servicesRegistration timing, the exempt-zero-rated call and NETFILE returns handled every period.Tax services →BookkeepingEvery sale and receipt coded to the right tax status so the GST34 writes itself.Bookkeeping →Incorporation & complianceProgram accounts and filing frequency set up correctly the day you register.Incorporation & compliance →
Free proposal
A fixed fee for your tax work, in writing.
- Tell us about your business. The form takes about a minute.
- A short discovery call. Fifteen minutes to confirm what you need.
- A fixed fee in writing. We reply within one business day. No hourly surprises.
- Canadian and US filings under one roof
- Cloud-first: QuickBooks Online, Dext, Wagepoint
- Brampton, Ontario, with clients across Canada and the US
Answers
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