Non-profit organizations generally have to pay PST for purchase of all goods on which PST is levied. Exemptions are few. However, we are aware of two areas where you may qualify for an exemption of PST.

Firstly, if your organization publishes a periodic newsletter primarily for information purposes, in which there is no advertising, then that newsletter is exempt from PST. The publication must be regularly published and not a one-time writing.

Secondly, it is our understanding that in the following circumstances childcare centres are exempt from PST on purchases of catered food (see Regulation 903 S14 of the Retail Sales Act and Retail Sales Tax Guide 300):

Where prepared meals are offered at no specific charge, i.e. the cost of the food is included in the monthly or daily childcare fee and the charge is not split out separately; and

1.      Food is for consumption in an educational institution where the prepared food products are provided to a student in an establishment operated by or on behalf of the school or university.

2.      Prepared food is served to "infants attending day care centres without cafeterias". For purposes of PST regulations we are informed by the Ontario Ministry of Revenue that infants are children not yet old enough to attend grade 1.

Catered food, on the other hand, purchased by centres not located in schools would appear to be taxable for children too old to be classified as infants.

Registered charities undertaking significant capital projects can qualify for PST rebates in some circumstances. We will deal with this issue in a future newsletter.