The Canada Revenue Agency has issued this info sheet to explain how the implementation of the HST in Ontario and British Columbia will apply to funeral or cemetery services supplied under a prepaid arrangement in these provinces.
The determination of whether GST or HST applies to funeral or cemetery services supplied under a prepaid arrangement will depend on the following:
- when the prepaid arrangement was entered into;
- whether there was reasonable expectation at the time the prepaid arrangement was entered into that all or part of the consideration for the funeral or cemetery services would be paid before the individual’s death; and
- when the funeral or cemetery services under the prepaid arrangement are provided.