GST/HST for Non-Profit Organizations: A Guide

GST/HST for non-profit organizations depends on the organization’s status, whether it is registered, and the specific goods or services it supplies. Do non-profit organizations pay GST? Yes: like any other buyer, a non-profit pays GST/HST on its own purchases, and once registered it charges GST/HST on its taxable supplies, recovering part of that tax through input tax credits or the public service bodies’ rebate. Non-profit status does not automatically exempt every sale from tax. A registered charity, a non-profit organization and a public institution can face different rules, so start with the legal status and then classify each activity.

When does GST/HST for non-profit organizations apply?

First identify what the organization provides and what it receives in return. A transaction can be taxable at an applicable rate, zero-rated, or exempt. The CRA says relatively few supplies by non-profit organizations are exempt, whereas most supplies by charities are exempt, with exceptions. Do not transfer a charity rule to an ordinary non-profit without checking it.

For a non-profit, CRA examples of generally taxable supplies include many conference registrations, advertising, restaurant meals and memberships whose main benefit is access to recreation or sports facilities. The facts and any specific exemption matter. An activity label such as “fundraiser” is not enough to determine the treatment.

Question	Why it matters
Is the organization a charity, a non-profit or a public institution?	Different rules and tests can apply.
What is supplied, and is there a payment in exchange?	Classify each supply before deciding whether tax applies.
Is the supply taxable, zero-rated or exempt?	This affects tax charged and possible input tax credits.
Is the organization required or eligible to register?	Registration depends on the applicable tests and activities.
Was tax paid on an expense?	Check input tax credits and any separate rebate eligibility; do not recover the same tax twice.

GST/HST for non-profit organizations in Ontario

An Ontario non-profit charges the 13% HST on its taxable supplies, the same combined federal-provincial rate as any other registrant in the province — see our HST in Ontario guide for the general rate rules. A registered charity or qualifying non-profit resident in Ontario that is eligible for the public service bodies’ rebate can generally recover 82% of the provincial part of the HST paid on eligible purchases for its non-selected public service body activities, on top of any ITCs claimed as a registrant; the public service bodies’ rebate page covers the full mechanics and the other provincial rates.

Check the activity, not just the purpose

The CRA’s nonprofit guide lists exemptions that depend on specific conditions. For example, some supervised instructional or recreational programs primarily for children aged 14 or under are exempt, subject to the program conditions, including the overnight-supervision limitation. Other qualifying programs are aimed primarily at underprivileged persons or persons with disabilities. A sports program is not automatically exempt merely because a non-profit operates it.

Other common exemptions depend on the facts in the same way: a membership sold by an NPO is generally exempt if it gives members only the benefits CRA lists, such as the right to vote or discounts worth less than 30% of the membership fee, and taxable if it gives more.

A voluntary gift with no substantial benefit in exchange is different from a payment directly linked to goods or services. Whether a sponsorship is subject to GST/HST depends on the nature and extent of the promotional benefits given to the sponsor; CRA treats a sponsor acknowledgement or the right to use a charity’s logo as not subject to the tax. Review the actual benefit, agreement and facts instead of assuming that a payment called a donation is always outside the tax rules. See our explanation of exempt and zero-rated supplies for the distinction between those categories.

Does the organization have to register?

For an NPO, CRA’s small-supplier test generally looks at revenue before expenses from worldwide taxable supplies of the organization and its associates. The threshold is $50,000 in a single calendar quarter and over the last four consecutive calendar quarters. The CRA guide explains exclusions and what happens when the amount is exceeded.

Timing differs depending on whether the threshold is exceeded in one quarter or across consecutive quarters. A small supplier engaged in commercial activity in Canada may also choose to register voluntarily. Charities and public institutions can also use a $250,000 gross revenue test: the organization is a small supplier throughout its first fiscal year, in its second fiscal year if its first-year gross revenue was $250,000 or less, and in its third or later fiscal year if its gross revenue for either of its two previous fiscal years was $250,000 or less. Use the applicable organization-specific rules before relying on the general GST/HST registration guide.

What about tax on purchases?

Tax on an organization’s expenses is a separate question from tax it charges on sales. A registrant may be able to claim input tax credits for qualifying purchases used in commercial activities. Generally, ITCs are not available for purchases used to make exempt supplies. Keep records of the intended and actual use, and follow the invoice requirements.

A public service bodies rebate is a different recovery mechanism for eligible non-creditable tax. A qualifying non-profit is a defined category for that purpose; CRA’s government-funding test is at least 40% of total revenue under the relevant rules. This is not a general sales-tax exemption or proof that every nonprofit qualifies. Check the CRA’s rebate guide for the applicable period, organization and calculation, and avoid claiming the same amount twice.

Practical records to keep

For each activity, keep the description of what was supplied, the contract or terms, invoices and receipts, the amount and nature of payment, and how related purchases were used. Track taxable revenue with associated organizations for the registration test. If the organization is uncertain about a mixed activity or a rebate calculation, use the CRA’s detailed guides or obtain advice for its facts.

Sources

Sources checked October 21, 2026.