News and Insights

Ontario Retail Sales Tax Guide 600

Tax Development Mar 09, 2009

“Motor Vehicle Repairs” and Small Business Pointer SBP 905, “Motor Vehicle Repairs”

These guides have recently been rewritten in a more user friendly format. These documents now reflect the recent change to the tax status of Drive Clean inspection services when provided with other taxable services. Ontario Retail Sales Tax (ORST) is not applicable to charges for Drive Clean emissions testing even if other repair work is performed at the same time. Where the emissions test and other taxable repair services are billed under one charge, ORST should be charged only on the repairs and not on the emissions test.

In addition, the guides clarify that for vehicle repairs performed under contracts of insurance, the repair facility must charge ORST on the full cost of parts and labour before any deductible is applied.

ON Guide 600 
ON SBP 905