Application of GST/HST to Supplies of Parking by Charities and Public Sector Bodies

The topic of taxes applicable to parking fees has been a popular subject since the Minister of Finance announced changes in the 2013 Federal Budget, aimed at ensuring consistent tax treatment for the supplies of paid parking, irrespective of which type of entity provides the parking.  After additional consideration, the Ministry proposed to have this additional tax burden lifted for hospital patients and visitors, subject to several conditions.

GST/HST Notice No. 285, “Application of the GST/HST to Supplies of Parking by Charities and Public Sector Bodies”, was recently published and has vital explanations on the legislative amendments made, and what they mean for charities and public sector bodies supplying paid parking.  Included in the notice are important definitions, specific details about the amendments made to the Excise Tax Act, the effective dates of each change, plus examples to demonstrate the practical application of the relevant provisions in the Excise Tax Act.